Just a quick note today as I continue working a restaurant! It's busy and sometimes although I'd love to be posting here to help you, work is necessary at my business.
That's the point I want to make today, don't quit your day job.... just yet!
There will be plenty of time to get your restaurant up and running and there's much to do before you actually get there so, for the time being you'll probably need to keep working to keep your income growing. That will only help you with more money down for your own loan or to assist your investors. Oh, and of course to keep paying your own bills on time.
How's everything going so far? Hope you've taken some of our advice already given and started working on it.
I'll try to get back here before the end of the weekend, we need to get your business plan in place and that the next section that we'll be discussing.
So, back to work I go and hope you'll be doing the same.
Until we meet again, thanks so much for reading and I appreciate your comments and plan to help you get started in business soon.
Cheers!!
Thursday
Wednesday
Check your Credit Report
Just a quick post today to let you know if you don't already, that you should definitely check your credit report before you make any appointments to meet with any type of lender for your new restaurant. This is a necessary step to getting a restaurant financed through anyone as they will want to make sure that you are current with your bills and pay on time. Start now to pay everything on time and learn how to get a free credit report.
You can get a free credit report every year by going to creditreport.gov. If you need more than one per year you will be charged a fee of $15.00 each time you request your report.
Once you get your credit report, let's take a look at what you want to check. Your lender will also get a copy of your report so, it's a great idea if you already know how it reads before meeting with the lender.
Here's what to look for on your credit report and how to make changes if needed:
You can get a free credit report every year by going to creditreport.gov. If you need more than one per year you will be charged a fee of $15.00 each time you request your report.
Once you get your credit report, let's take a look at what you want to check. Your lender will also get a copy of your report so, it's a great idea if you already know how it reads before meeting with the lender.
Here's what to look for on your credit report and how to make changes if needed:
Friday
Commercial restaurant equipment
Just a quick word about the equipment you'll need for your new restaurant.
Before you go out and start buying restaurant equipment, you must know that you will be required to have all commercial grade equipment installed in your entire restaurant. That includes your restaurant kitchen, your bar and your service areas.
Many people are unaware of this and begin to accumulate equipment that maybe they've used in their home such as a microwave, coffee maker or toaster. These appliances simply are not made for continued use day in and day out and for long extended hours as you'll be working in your restaurant.
The Board of Health, your Department of Revenue and the Liquor Control Board as well as the Fire Department for your state, no matter which state you live in, will not approve your restaurant without
Before you go out and start buying restaurant equipment, you must know that you will be required to have all commercial grade equipment installed in your entire restaurant. That includes your restaurant kitchen, your bar and your service areas.
Many people are unaware of this and begin to accumulate equipment that maybe they've used in their home such as a microwave, coffee maker or toaster. These appliances simply are not made for continued use day in and day out and for long extended hours as you'll be working in your restaurant.
The Board of Health, your Department of Revenue and the Liquor Control Board as well as the Fire Department for your state, no matter which state you live in, will not approve your restaurant without
Thursday
Organize your Bills for the Lender
Let's Get Organized!
Keep a clean and organized office at home as great practice for when your new restaurant is up and running! Good habits start at home.
Your lender is going to want all the information you have about your current finances in order to determine your eligibility to get a loan so you'll want to make sure you are organized. Use these simple strategies for organizing your bills so you're ready when your potential lender is ready!
Use a file cabinet that looks good - take it to your restaurant later! Keep it affordable
** Keep a file system
Any kind of file box will work and you can keep manilla folders inside of it, labeling each of those folders with the name of the bill. Once you start to use a file box, all your bills can easily be added once they're paid and you'll be able to find the most recent interest rate you're being charged, the total balance due and the monthly amount due. Your lender will no doubt ask you all of these questions so a file box will really come in handy. You can find file systems at any office supply store, Pier I and online at places such as amazon.com and you'll get free shipping with amazon and some good deals when you buy items in bulk.
Keep a clean and organized office at home as great practice for when your new restaurant is up and running! Good habits start at home.
Your lender is going to want all the information you have about your current finances in order to determine your eligibility to get a loan so you'll want to make sure you are organized. Use these simple strategies for organizing your bills so you're ready when your potential lender is ready!
Use a file cabinet that looks good - take it to your restaurant later! Keep it affordable
** Keep a file system
Any kind of file box will work and you can keep manilla folders inside of it, labeling each of those folders with the name of the bill. Once you start to use a file box, all your bills can easily be added once they're paid and you'll be able to find the most recent interest rate you're being charged, the total balance due and the monthly amount due. Your lender will no doubt ask you all of these questions so a file box will really come in handy. You can find file systems at any office supply store, Pier I and online at places such as amazon.com and you'll get free shipping with amazon and some good deals when you buy items in bulk.
Wednesday
What paperwork should you be preparing to own a restaurant
Taking your next step in owning a restaurant has to be to start to get your own paperwork in order so that's what we'll discuss here.
Before you go to any lender and it doesn't matter if that's going to be a bank, credit union, family member or another private financier, you'll want to start to get your own ducks in a row and that means getting all your paperwork in order!
Tax Returns
It may seem obvious that you'll need at least three years of tax returns and many times you may also need up to five years but, trust me, some people haven't even filed last year taxes so it must be discussed.
What information will tax returns provide to your lender?
Your tax returns will show a lender your current address and prior ones. A lender may appreciate the fact that you have been at the same address for 3-5 years and shows you are stable and a member of the community. If you have had an unstable address meaning you've been moving around a lot, be ready to explain why that is the case and how you are now done moving and ready to take on the responsibility of owning your own restaurant. This will be discussed more in your business plan but, for now just now that it will be something that comes up with your financial institution.
Tax returns show your income which is a very important part of getting financing for your start up restaurant.
Tax returns show your social security number and your financier can instantly (or at least rather quickly) get your credit report to match it against your return.
Tax returns also show not only your income but, any loans and debt if you have itemized your deductions.
Your employer is listed on your tax returns so your financier will be able to verify the information you tell them simply by comparing it to your tax returns.
Can you tell by now that your tax return tells a lot about you already so
Before you go to any lender and it doesn't matter if that's going to be a bank, credit union, family member or another private financier, you'll want to start to get your own ducks in a row and that means getting all your paperwork in order!
Tax Returns
It may seem obvious that you'll need at least three years of tax returns and many times you may also need up to five years but, trust me, some people haven't even filed last year taxes so it must be discussed.
What information will tax returns provide to your lender?
Your tax returns will show a lender your current address and prior ones. A lender may appreciate the fact that you have been at the same address for 3-5 years and shows you are stable and a member of the community. If you have had an unstable address meaning you've been moving around a lot, be ready to explain why that is the case and how you are now done moving and ready to take on the responsibility of owning your own restaurant. This will be discussed more in your business plan but, for now just now that it will be something that comes up with your financial institution.
Tax returns show your income which is a very important part of getting financing for your start up restaurant.
Tax returns show your social security number and your financier can instantly (or at least rather quickly) get your credit report to match it against your return.
Tax returns also show not only your income but, any loans and debt if you have itemized your deductions.
Your employer is listed on your tax returns so your financier will be able to verify the information you tell them simply by comparing it to your tax returns.
Can you tell by now that your tax return tells a lot about you already so
Financing your restaurant
Before you get too involved with starting a restaurant, you need to understand a few key concepts in regard to financing.
Do you have the funds in cash yourself to open your own restaurant? Most or at least many people do not and must rely on financial assistance to get the ball rolling. If you are going to need some financial help, let's take a look at where to find the financing for your dream restaurant.
Banks
Banks are typically very large institutions and they do have a lot of money so, you may think that the first place to go would be a bank, right? Understand that banks don't want to be in the restaurant industry and most restaurants fail within the first 3-5 years so getting a bank to lend you money for your start up is probably the most difficult way to go. Oftentimes, banks are also so large that they may be too busy to get to know each of their customers as well as their corporate offices aren't located in your town or city and all the paperwork and decision making could happen at the corporate office. That's not always the case though and many banks are trying harder these days to get more in touch with their customers.
If you already do business with a large bank, keep your accounts current, up to date, pay all your loans on time and make friends with your banker. Don't lose hope and think that there's no way you can do this without a bank, there are other options and you just might end up with a bank after all.
Private Financing
There are private financing individuals or companies that lend money to start up businesses and this could be a viable option for you. Some of the best places
Do you have the funds in cash yourself to open your own restaurant? Most or at least many people do not and must rely on financial assistance to get the ball rolling. If you are going to need some financial help, let's take a look at where to find the financing for your dream restaurant.
Banks
Banks are typically very large institutions and they do have a lot of money so, you may think that the first place to go would be a bank, right? Understand that banks don't want to be in the restaurant industry and most restaurants fail within the first 3-5 years so getting a bank to lend you money for your start up is probably the most difficult way to go. Oftentimes, banks are also so large that they may be too busy to get to know each of their customers as well as their corporate offices aren't located in your town or city and all the paperwork and decision making could happen at the corporate office. That's not always the case though and many banks are trying harder these days to get more in touch with their customers.
If you already do business with a large bank, keep your accounts current, up to date, pay all your loans on time and make friends with your banker. Don't lose hope and think that there's no way you can do this without a bank, there are other options and you just might end up with a bank after all.
Private Financing
There are private financing individuals or companies that lend money to start up businesses and this could be a viable option for you. Some of the best places
A rewarding opportunity
Owning a restaurant can be one of the most rewarding opportunities of your lifetime and congratulations to you if you are considering becoming self employed and one of the many entrepreneurs to undertake this new role! Maybe you already own a restaurant and need success tips to help you make it better and more profitable. We'll cover that too.
You no doubt have many questions on how to start a restaurant, what it takes to open a restaurant, how to run a profitable restaurant and more questions on financing, design, staffing, taxes, payroll and the rest of the business.
We're here to help you and have first hand experience with over 35 years in the restaurant industry and own one of the most beautiful designs and favorite restaurants in town.... You can too if you follow along and take it one step at a time!
Thanks for joining us on what will be a wild ride at times and feel free to post comments so that we know what your needs are so we can post about them.
Use these tips to avoid procrastination - Get started now!
You no doubt have many questions on how to start a restaurant, what it takes to open a restaurant, how to run a profitable restaurant and more questions on financing, design, staffing, taxes, payroll and the rest of the business.
We're here to help you and have first hand experience with over 35 years in the restaurant industry and own one of the most beautiful designs and favorite restaurants in town.... You can too if you follow along and take it one step at a time!
Thanks for joining us on what will be a wild ride at times and feel free to post comments so that we know what your needs are so we can post about them.
Use these tips to avoid procrastination - Get started now!
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