Opening a Business?

Question

Hello Fellow Answerers!

My sister has asked me to be her business partner and to help her open a restaurant in Detroit. I have no experience whatsoever (which doesn't mean much cause I have to start somewhere) but I am typing this to ask if others have any advice on getting started when opening up a (food) business? Preferably, some advice from anyone who has opened a business themselves, but all are welcome.

THANK YOU KINDLY

Shucks, I forgot most people are watching the Michigan VS Ohio State Game :(

Answer 1

The first step is to learn as much as you can about the business. Especially for someone like you who is coming into the business with zero experience. Read, ask around other similar business owners, join associations and network.

It is always best to start your business by putting together all your questions and finding answers to them. You can do that with a business plan (and if you plan to look for investors or apply for a loan, you need to present your business plan). Here are some sample business plans that you can use

Sample Restaurant Business Plan (steakhouse) http://www.bplans.com/spv/3228/2.cfm
Sample Restaurant Business Plan (organic restaurant) http://www.bplans.com/spv/3259/index.cfm

Below are free information and resources that I've found on how to start a restaurant business:

National Restaurant Association http://www.restaurant.org/
Entrepreneur.com Marketing and Promotions of a Restaurant http://www.entrepreneur.com/article/0,4621,317716-8,00.html
Starting a Restaurant Business http://www.awib.org/content_frames/articles/restaurant.html
RestaurantOwner.com http://www.restaurantowner.com/
AllFoodBusiness.com How to Start a Restaurant http://www.allfoodbusiness.com/starting_your_own_business.php
6 Ways to Attract New Customers to Your Restaurant http://www.homebusinesscenter.com/how_to_start/restaurant.html
Canada Business Starting a restaurant http://www.cbsc.org/servlet/ContentServer?pagename=CBSC_FE%

You may consider the following resources (not free):

Palo Alto's Restaurant Business Plans http://www.bplans.com/st/restaurant.cfm
FabJob.com's Starting a Restaurant Business http://www.fabjob.com/restaurantowner.asp
Entrepreneur.com http://www.smallbizbooks.com/cgi-bin/SmallBizBooks/00047.html

Associations are great resources as well

National Restaurant Association http://www.restaurant.org/
National Restaurant Association Educational Foundation (they have excellent training courses for restaurant owners) http://www.nraef.org/
Your state restaurant association (e.g. http://www.ohiorestaurant.org/ , http://www.azrestaurant.org/ , http://www.parestaurant.org/ , http://www.nmrestaurants.org/

If you want in-depth information, I suggest you check out the following books:

The Restaurant Business Start-up Guide (Real-World Business) by Paul Daniels http://www.amazon.com/exec/obidos/ASIN/1582911037/ref=nosim/powerhomebizguid
Opening a Restaurant or Other Food Business Starter Kit: How to Prepare a Restaurant Business Plan and Feasibility Study by Sharon Fullen http://www.amazon.com/exec/obidos/ASIN/0910627363/ref=nosim/powerhomebizguid
Start Your Own Restaurant (and Five Other Food Businesses) (Entrepreneur Magazine's Start Ups) by Entrepreneur Press and Jacquelyn Lynn http://www.amazon.com/exec/obidos/ASIN/1891984268/ref=nosim/powerhomebizguid
Start Your own Restaurant and Five Other Food Businesses (Startup) by Jacquelyn Lynn http://www.amazon.com/exec/obidos/ASIN/1599180200/ref=nosim/powerhomebizguid

Answer 2

this is the worst business to open with no experience, there are a zillion ways to loose money.
for starters\, don't throw away food, put it in soups, stews, make croutons,....
get the freshest veggies you can, learn to recognize old produce at a glance.
don't take checks.
learn accounting. set aside your tax reciepts EVERY DAY, and do not borrow from it.
get a good location. to check on traffic thru the potential parking lot, compare how dirty the concrete apron leading to the street is compared to other locations. do not try to save money with an out of main traffic area. new buisnesses MUST have high foot traffic. don't sign long term leases. 6 months at a time.
don't remodel. paint put curtains up, maybe some pictures or stenciling.
call the health department. ask to meet an inspector. ask her how to set up your kitchen and ask if she wants to recommend a good supply co that has used equipment. you usually save 50% this way. have it all installed by a lic contractor so you can chase his bond if you have to.
don't use your brother in law and his best friend unless he drives a nicer and newer truck than you and don't pay more than 30% deposit to the workers. if they are any good they should have a good bankroll to work with. don't pay daily.
if you can work only 12 hour days you are lucky.
especially the first year, your business will own you, not you own it. do not think you will have a social life.
DO NOT THINK YOU CAN HIRE OTHERS TO RUN YOUR BUSINESS WHILE YOU ARE GONE, IT WON'T HAPPEN.

i have started 5 businesses, none as hard as restraunts. they have all flourished. i have shut them down because i was bored with the success, i like getting a bus up, then look for other challenges good luck.
for more info get back to me at [e-mail]

Answer 3

Oh where to begin! You need a place, obviously. Then there's the licenses, permits, insurance, liquor liability, dram shop, bank accounts, decor, menus, you need to find food distributors in your area who will deliver, beverage deliveries, towel deliveries, get an accountant to do payroll and sales tax for you since you'll be overwhelmed at the amount of paperwork. And get your state sales tax ID# and federal EIN.

Best wishes, it's a fun run!

Answer 4

If you go to www.advancedwealthsolutions.com & click on business owners, you will find a plethora of info & links to help new & prospective business owner.

Lots of luck!