I'm thinking of opening up either a small restaurant or cafe. I've got about 10K saved up and will be getting a loan from the bank to cover most of the expenses. I just wanted to know what type of costs are involved. Would it be difficult to find a place for about less than 2k a month? Is it difficult to get a business loan? Downtown would be expensive so i'm thinking maybe opening it in the Markham or Richmond Hill area. Any other information provided would be greatly appreciated.
Opening a Cafe or Restaurant
- Thread starter [ALIMEISTER]
- Start date
you need a business plan that make sense to someone who has never owned a business.
You also need suppliers who will endure the startup.
As for cash consider this 24 months of total support of the business.
You also need suppliers who will endure the startup.
As for cash consider this 24 months of total support of the business.
I've also been toying with the idea of opening a small business. But I'm broke. Feel free to disabused me of any illusions I might have about getting small business loan from a bank or the government.
Imigrants to the US get money to start businesses.Drunken Master said:
Citizens get the ability to support their asses.
restaurant
Ali, do yourself a favor and write a comprehensive business plan. Any investor or lender will require one, and it will force you to take a long hard look at reality. Most restaurants fail within the first year, doomed by a poor location or insufficient capital. Unless you have some deep pockets to get you through the first year, you really have better odds of putting your money on a spin of the roulette wheel.
Trust me on this one, I have about 10 years of experience in the industry.
Ali, do yourself a favor and write a comprehensive business plan. Any investor or lender will require one, and it will force you to take a long hard look at reality. Most restaurants fail within the first year, doomed by a poor location or insufficient capital. Unless you have some deep pockets to get you through the first year, you really have better odds of putting your money on a spin of the roulette wheel.
Trust me on this one, I have about 10 years of experience in the industry.
Thanks for your input everyone. It seems as though it would be quite risky. I've always wanted to own a small business on the side. I know location is extremely important, and the demand has to be high for my product or service. A business plan is something that I have started working on.
Try starting up another, smaller business first, on the side as you said, to see if you like it. I was in a partnership for 10 years, and have now had my own business for nearly as long, and the one thing I can tell you is that it demands your attention far more than you might expect. I don't have any business experience in restaurants, but from my friends who do I know it can be especially brutal. In my city over half of new restaurants don't make it past the first year.
Ali - don't listen to the Nay sayers
First off - follow the dream. You might want to look at either investing in or taking a small business. 10,000.00 is good seed money
Contact the Business Development Bank ( check in the yellow pages ) they fund and support small business ventures just like yours.
If I had listened to the nay sayers 11 years ago, I would still be working for paycheque every week. Today I am making a six figure income and have time to golf every friday and wednesday during the summer and take golf weekends to the west coast and florida several times a year.
Follow the dream...
First off - follow the dream. You might want to look at either investing in or taking a small business. 10,000.00 is good seed money
Contact the Business Development Bank ( check in the yellow pages ) they fund and support small business ventures just like yours.
If I had listened to the nay sayers 11 years ago, I would still be working for paycheque every week. Today I am making a six figure income and have time to golf every friday and wednesday during the summer and take golf weekends to the west coast and florida several times a year.
Follow the dream...
Follow the dream, but don't let it become a nightmare.
If you are not extremely familiar with this type of businees, i.e., foodservice and all it entails, forget it. Unless you have a partner who knows the ropes and will put in the long hours, forget it. Unless you can lose the original 10K, then another 10K, and then get sued for another 10K, forget it.
Go work at a place like you want to open first and make sure you can handle it.
If you are not extremely familiar with this type of businees, i.e., foodservice and all it entails, forget it. Unless you have a partner who knows the ropes and will put in the long hours, forget it. Unless you can lose the original 10K, then another 10K, and then get sued for another 10K, forget it.
Go work at a place like you want to open first and make sure you can handle it.
It's not nay saying. Just the fact of the nature of the business, the industry and the obstacles that will present themselves. The Business Development Bank does support small businesses. However less so fo teh nature he wants to opne. Almost next to impossible to get. They are are more interested in high rate of return and quick and add to the fact that resaurants opne and close a dime a dozen a month. This doesn't make BDC chomping at the bit to loan out money. You'll need alot more then $10,000 cash to get this going. In the end, most likely even if it doesn't fail, you will just be buying yourself a job.ham2004 said:
Consider a franchise. Some turnkey operations come with all the bells and whistles, including financiers just waiting for your call. Especially if you are sincere enough to invest 10K of your own.
As a person who knows the restaurant and bar industry intimately, please be warned. Firstly, the bank will not lend you any money at all. The big banks are very greedy and see no margin in an industry with a 95% failure rate within five years. Secondly, ten thousand dollars will barely buy the silverware. Check out the prices for commercial grade kitchen and dining room furniture. The prices are outrageous. For a new operation, suppliers will demand cash on delivery. Thirdly, for any feasible food service franchise, the upfront fees would be in the neighbourhood of $175000 to $250000.
I know that the food service industry seems sexy and exciting, but it is fraught with problems and pitfalls beyond your imagination.
If you have to open a restaurant of your own, check out "Opening Soon" on the Food Channel on television to get an idea of the trials and tribulations that prospective entrepreneurs run into, and, these people, as experienced chefs and managers, know what they are doing. Therefore, if you are not experienced in this area, you probably don't stand a chance.
I know that the food service industry seems sexy and exciting, but it is fraught with problems and pitfalls beyond your imagination.
If you have to open a restaurant of your own, check out "Opening Soon" on the Food Channel on television to get an idea of the trials and tribulations that prospective entrepreneurs run into, and, these people, as experienced chefs and managers, know what they are doing. Therefore, if you are not experienced in this area, you probably don't stand a chance.
This is a very interesting thread. I am sure a lot of fellow terbites own business either full fledged or on the side. Ofcourse, it's been my dream to start some kind of business on the side and see if I can liberate myself from the 9-5 regime.
10 K seems a small amount to me and I'd be really surprised (pleasantly) to find out if that can help start anything. Let me know if yes..
Me and my friend have been investigating a lot of business opps but have consciously stayed away from restaurants. We feel any retail or customer facing biz would require a lot in terms of time, commitment etc. It cannot be 'on the side'. We are going for trading related. Like importing stuff for sale here or vice versa. Again, if there are experts here, Won't mind learning tips.
This is a great board and I love it more when people share ideas and offer help.
10 K seems a small amount to me and I'd be really surprised (pleasantly) to find out if that can help start anything. Let me know if yes..
Me and my friend have been investigating a lot of business opps but have consciously stayed away from restaurants. We feel any retail or customer facing biz would require a lot in terms of time, commitment etc. It cannot be 'on the side'. We are going for trading related. Like importing stuff for sale here or vice versa. Again, if there are experts here, Won't mind learning tips.
This is a great board and I love it more when people share ideas and offer help.
I have had clients in the restaurant business; there are labour costs, taxes, food that spoils (which can be a lot), plus you need trustworthy staff. It is easy for a dishonest employee to pocket cash. It is an industry with an incredbly high failure rate. To be honest, $10k isn't nearly enough to support the business, and keep in mind you have to support yourself too.
This is a great post. It paints the true reality of this business. While not to discount your initial investment (as any money to save up is tough) but in this industry $10,000 is pitence. Unless you have a friend or relative who is willing to burn a quarter million, look elsewhere to invest.The Brus said:
