Thursday, September 6, 2012

10 QUESTIONS

10 Questions
1.     What are the five things you should do in the nine months before you start up your restaurant?
a.     Determine your restaurant concept
b.     Determine what makes you different
c.      Start writing your business plan
d.     Define your target markets
e.     Seek the best location
2.     What kind of research do I need to start a business
a.     “Information sources come in two varieties: ‘Hot’ and ‘cool’. You will need both kinds. Hot information sources are interpersonal and the information is interactive and provides immediate feedback. Cool information sources are less interactive and for many entrepreneurs less fun.”
3.     How to determine how much cash you need to start a business
a.     How much cash do I need to start my restaurant
b.     Is this going to be a good investment
c.      Can I make payroll every week
d.     Will I make money
e.     How much is it worth
f.      How much must I sell to break even
4.     How to determine the amount of cost/revenue/profit of the company
a.     Make a table/chart and map out the outline of all three using a marginal Revenue/cost/profit equation
5.     How to get a loan
a.     “Bankers are in business to make money by lending out their depositors’ money. If you plan to use a bank’s credit services, offer them your deposit business while negotiating your loan or credit card.”
6.     How to make a marketing plan
a.     “Basic marketing plans include benefits to the customer, target marketing, and watchful concern for the competition. Reviewing the nonfinancial objectives and sales forecasts helps ensure that your latest thinking governs your projections. “
7.     Should I get insurance coverage
a.     You are legally required to provide certain coverages (for example, workers’ compensation, unemployment). Your creditors will require coverages. And prudent management calls for basic liability coverages.
8.     What are some of the questions for contacting food vendors
a.     What days of the week will you deliver to me?
b.     Is there a minimum order size
c.      How much lead-time do you need for orders
d.     What are the payment terms
e.     How do I set up an account.
f.      What are your policy on returned items
9.     How to hire workers
a.     Use job descriptions
b.     Choose from more than three applicants per job
c.      Schedule interviews
10. How to prepare an grand opening
a.     “You need to get local press coverage for free; you gain an immediate presence in the community; and you get an invaluable chance to control the first impression your business makes.”
Citation
Rainsford, Peter, and David H. Bangs, Jr. The Restaurant Start-up Guide. 2nd ed.
Chicago, IL: Dearborn Trade, a Kaplan Professional, 1997, 2001.

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