Do you want to know exactly how much it cost to start a restaurant business? If YES, here is a detailed cost analysis for starting a restaurant business and raising finance.
Having provided you with a:
- Restaurant Industry Overview
- Market Research and Feasibility
- Restaurant Business Plan
- Restaurant Marketing Plan
- Restaurant Name ideas
- Restaurant Licenses and Permits
- Restaurant Marketing ideas
We will consider how much it cost to start a restaurant business from scratch including the operating costs.
When it comes to starting a restaurant business, loads of factors influences the amount that will be required to successful launch the business. Factors like the location you intend starting the business, the type of restaurant you want to start, the size of restaurant you want to start, and of course the state of the economy as at when you intend start the business.
How Much Does It Cost to Start a Restaurant?
No matter where you intend starting your restaurant, you would be required to fulfill most of the items listed below;
- The Fee for Registering the Business: $725
- The budget for insurance, permits and license: $10,000
- The Amount Needed to Rent a Facility for 6 months (reconstruction of the restaurant is inclusive): $75,000
- The Cost for the purchase of restaurant furniture and gadgets (fridges, TVs, microwave oven, Sound System, tables and chairs et al): $20,000
- The Cost for tableware, utensils, dishes, bar and kitchen equipment: $15,000
- The Cost for supply of raw foods, ingredients, drinks and beverages for a month: $5,000
- The Cost of Launching a Website: $600
- The cost opening party: $5,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
Going by the report from our research and feasibility studies, you will need an average of $200,000 to start a small scale restaurant in the United States of America.
If you want to start a medium restaurant in the United States, you would need nothing less than a million dollars. And if your intention is to start a large scale restaurant in the United States of America, then you should look towards generating over two million dollars as your start – up capital.
Financing Your Restaurant Business
It is often said that money is the blood of any business. No doubt raising start – up capital is perhaps one of the major concerns for entrepreneurs; it can be challenging raising capital to launch a business idea. Your idea must be workable and promising for you to secure finance from financial institutions or from investors.
The first thing to put in place before sourcing for start – up capital for your business is to draft a detailed business plan. With a good business plan, you can easily convince investors to invest in your business. The truth is that no bank can give you a loan if you don’t have a good and workable business plan.
Besides, investors will not take you seriously if you don’t have a business plan on ground before launching out to source for start – up capital. There are several options when it comes to raising money to finance a start – up business. Some of the options are;
- Raising money from personal savings and sale of personal stocks
- Raising money from investors and business partners
- Applying for loan from bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Sourcing for soft loans from family members and friends.