Getting into the fast food industry is a dream for many, but it remains an ambitious project that requires a lot of preparation, knowledge and investment.
And it’s not always easy to recognize that you need support, especially when you have to deal with so many things at once. So how do you know if you need help with your business?
Here are 5 signs that you need help and advice:
1. You have no business plan
You already know that the failure rate in the restaurant industry is very high (around 60% of restaurants close before their 3rd year of operation) but it is even higher when no business plan is implemented.
A business plan is an essential management tool for any restaurant owner and it is one of the major elements in the success of any business.
Not only will the business plan allow you to measure the profitability of your business and have a realistic vision, it will support you during your financing process.
Here’s what a restaurant business plan includes:
- Your restaurant concept
- Market analysis and research
- The location
- Advertising and marketing (promote your restaurant before and after opening)
- Type of menu offered
- The cost of the project and financing strategies (to secure investors and bank financing)
- External aid
2. You haven’t established your financial forecast
Au cœur de votre projet, les prévisions financières se révéleront indispensables pour savoir si votre projet sera rentable d’un point de vue financier. Toute la crédibilité de votre projet réside sur ce point.
A savoir: les investisseurs sont sensibles aux prévisions financières réalistes et complètes.
En préparant un plan financier prévisionnel pour votre restaurant, vous serez à même de prendre des décisions éclairées car vous comprendrez mieux votre entreprise.
3. You have a down payment but you are missing a portion of the financing
Are you missing part of the financing despite an initial down payment? It is true that it can be difficult to find the money to finalize your financing, especially if you are just starting a business.
Banks, investors, or lenders often take into account that experienced entrepreneurs have the financial means compared to someone without experience, which prompts lenders to reduce restaurant financing requirements.
A restaurant consultant can assist you in creating your business plan, a mandatory document if you want to finance your restaurant.
4. You are working alone on this project
One of the biggest mistakes new entrepreneurs make is trying to do it all yourself.
By trying to do things by yourself, you end up not doing much in the end.
Surrounding yourself with professionals will help you move forward more quickly in your projects and thus reduce costs.
To make your restaurant a success from the start, find a role in which you will be most useful. Are you good in customer relations, or rather in marketing? Think about the different aspects of your restaurant concept that you want to manage, and let the team take care of the rest.
5. You have difficulty developing your franchise
Do you have a successful restaurant that is ready to expand but you are having problems with your franchise project?
Whether it’s developing a franchise or opening a new location, bringing a project to life takes time. It is a complex operation that requires some preparation and compliance with certain steps such as:
- Validate the profitability of the concept
- Take a look at your franchise development plan
- Produce a certain number of documents
- Communicate in order to make your franchise network work
A lot of mistakes can be avoided with the right processes in place, even before the restaurant opens.
Entrepreneurship centers dedicated to the creation of a restaurant business, such as the CDER du Québec, exist. They can help make your project a reality and accompany you every step of a way.