How to start your food business: An 8-step guide to success

1. Make a solid Business Plan

Prior to making any investment, you need first make a thorough investigation. Take a few weeks (or even months) to learn more about your target client base, the newest developments in the food service industry and your competitors. Then begin drafting a business plan that will be presented to potential investors. Consider it as an exploration of your four Cs: context, channel, consumer, and customer 

2. Secure your financing

It’s time to organize your finances now. But not everyone with the desire to open a restaurant can afford to do so on their own. Actually, not many do. Fortunately, there are numerous additional options available to you for obtaining capital for your new business:

1. Obtain a business loan. 

2. Go to your loved ones or friends.

3. Obtain government assistance

4. Seek outside funding sources or enlist a partner

3. Choose location

“Location, location, location” is a common saying. It turns out, though, that’s not always the case. Your establishment’s location will depend on a number of factors; you don’t absolutely need to be in the newest, hippest retail district unless you’re counting substantially on foot traffic

Here are some things you should think about:

i.  Cost

ii. Accessibility to potential customers

iii. Restrictive ordinances

iv. proximity to other businesses

v. plans for the future

4. Design the layout of your space

Make sure there is a seamless transition between your kitchen and eating areas vy carefully considering their layout. Enough space for your chefs to plate, garnish, and decorate their food is essential for prep work.

5. Choose your suppliers

Working with multiple suppliers will be part of your job as a restaurant; these suppliers may include furniture, POS systems, barware, kitchen appliances, and food. Create a desire list, determine your short and long term financial needs and start looking for a spouse. However, keep in mind that although you shouldn’t skimp on quality, expensive suppliers have the potential to eat into your profit margins and bankrupt your company. Thus, be sure to bargain hard.

6. Get your licenses and permits

Every nation, county, and city has its own set regulations. To ensure that you follow all local health and safely standards and food regulations, however, be sure to check in with your local regulatory agency and think about hiring legal counsel.

If you intend to serve alcoholic beverages at your restaurant, an alcohol license is an additional licensing that is crucial

7. Start hiring your employees

Consider first the kind of employees your restaurant requires. This could comprise managers of human resources, experts in purchasing, accountants, managers of marketing and sales, chefs and sommeliers, waiters, hosts, bartenders, and personnel responsible for cleaning and dishwashing, depending on the size of your restaurant. Ensure that each task has an adequate number of employees, and prepare ahead for shift scheduling and backup workers in case of illness or vacation.

8. Advertise your business

You should advertise your restaurant fairly before it opens to let the neighborhood know there’s a new restaurant on the block. Even while word of mouth referrals are still the finest kind of advertising, you might want to think about publicizing your new business in the following additional ways:

i. Build a great website

ii. use social media

iii. Run some paid media ads

iv. Offer promotions to new guests