| One of the biggest reasons restaurants fail is | | | | saving money at the outset, you may actually |
| because there was never really enough capital to | | | | lose money in the long run because places that |
| start the restaurant in the first place. If you are | | | | are fully equipped usually are much more |
| planning to open your restaurant, you will need | | | | expensive than places that aren't furnished or |
| enough capital to start up and then enough | | | | equipped at all. |
| money to cover about two to three years of | | | | In addition to the items listed above, you'll also |
| expenses because this is usually about how long it | | | | need to buy an outdoor sign, menus, glasses, |
| will take before you start making any real profits. | | | | china, silverware, and many other smaller items. |
| For now let's just focus on the restaurant start | | | | You need to make sure you plan out every little |
| up costs - money you'll need to go from the idea | | | | thing you need to get started including things like |
| stage to actually opening your restaurant. These | | | | napkins, light bulbs, and toiler tissue. |
| costs can vary depending of the style of the | | | | Part of your start up costs will also include money |
| restaurant, location you have chosen, and the | | | | for buying point of sale equipment such as cash |
| type of cuisines offered. It can range between | | | | registers, credit card machines, etc. You will need |
| one hundred thousand dollars and three hundred | | | | a way for people to quickly and easily pay for |
| thousand dollars depending on where you live, | | | | their food (this is how you'll make money). |
| what type of restaurant you're opening, and a | | | | You will also need to plan for buying food and |
| variety of other factors. | | | | drinks, as well any other thing that will be an |
| From the outset you're going to shell out money | | | | ongoing expense. Don't forget to include anything |
| to get all the proper licenses and permits. Then | | | | and everything. Any unexpected expense that |
| you'll also have to either spend a good chunk of | | | | crops up later will hurt your bottom line and |
| cash on slightly modifying a place, completely | | | | threaten to blow apart your budget. So be very |
| renovating a space, or absolutely starting from | | | | careful. |
| scratch. Obviously, the more you want to do to | | | | Restaurant start up costs can be very pricey, |
| the space then the more money you'll have to | | | | The average cost to start up a restaurant is |
| spend. | | | | often right around a quarter of a million dollars. In |
| Then you're going to have to look at the | | | | addition, a very common reason why people fail |
| restaurant start up costs to purchase the | | | | with their restaurants is because they don't have |
| equipment you need for the restaurant. This | | | | enough money to shell out for the initial cost of |
| includes things like the ovens, stoves, freezers, | | | | opening the restaurant and then to continue to |
| refrigerators, stations for cutting, heating, and | | | | spend the money to keep the restaurant |
| cooling, ventilation equipment, tables, chairs, and | | | | operating. So just to be sure, always make sure |
| possibly bar stools. Of course you may be able to | | | | you have the capital to start up the restaurant |
| find a place where many of these things are | | | | and then to keep it going for a couple years. |
| already present. However, even though you'll be | | | | |