One of the most common business ideas is starting a restaurant. For entrepreneurs and food hobbyists, running a restaurant business is one of the biggest dreams they probably have in their lives.

Having your hobby be both your passion and a source of income is one of the best things for a person. That said, if you’re planning to create a restaurant business from scratch, there are many things you have to know before going ahead. Here are some of them.

Pick a Concept

So after that, what kind of restaurant do you want to have, and what food do you want to serve your patrons? If you already have a type of food in mind, then you must consider only the branding.

Choosing what kind of restaurant you want to run is an essential thing you can do in the planning part and one of the most fun you can have, especially if you let your creativity and imagination run wild. Here are some example concepts that might spark your creativity:

• A restaurant with a traditional French Menu
• A ghost kitchen that only serves vegan dishes on  the go
• A build-your-own ramen restaurant

Create Your Menu

Building your menu is also fun, and it’s essential to do after you create your brand. Choosing your menu is fun, but you have to remember that you must be able to keep it in line with your brand and what you can do as a restaurant business owner.

This is because your menu items dictate many things from the get-go, like how much money you’ll have to bank in, the staff you should have, and the chefs or practitioners your restaurants must have. It also helps you determine the type of people you want to eat in your restaurant and the equipment you need, like ovens, steamers, industrial scales, etc.

Create a Business Plan

Now that you have an idea of what type of restaurant you want to have and what type of food you want to serve, you can envision and create a business plan to jot all your ideas down and give your business a direction. Think of your business plan as a skeleton that outlines each important business component. This should all lead down to your business and what it will look like, probably 5 to 10 years from now.

It’s also important to note that if you want to get funding from investors and banks, a proper business plan is essential since this will give them insight into whether or not your business idea is worthy enough to invest in.

Obtain Funding

After creating a business plan,  the next step is to obtain funding. Remember, your business plan should be impressive and detailed enough for your investors to be convinced to invest in your restaurant business. However, it’s not only from investors you can get funding. You can find funding in several places of interest, like banks, friends, angel investors, and even venture capitalists.

Before you find capital, though, you must know how much money you want for your business. You can begin by estimating the startup and cost needed for daily operation. You should also include your important equipment in this estimation.

You can then use this information to forecast how much you will need for a year. So, if you have this all jotted down, you can pick the best deal when given offers from different sources.

Know About the Licenses and Permits

Let’s say that you already have an establishment and are ready to operate. Before you do so, you must get the necessary permits and licenses before you can cook. It usually depends on the state or city and which kind of licenses and permits you should have before you can open your restaurant, so it’s always recommended that you research and get them before you open your restaurant. Otherwise, your restaurant will close down even before you open it.

Do Some Market Research

Having a business is all good and well, but first, you have to ensure that your business will align with the market. That said, you can do this by researching the market. Regardless of what type of business you want to have or in what industry you plan to be, doing your market research is important since it gives you an insight into your competitors, your customers, the demand your business will have, the supply you should keep, etc.

Final Words

Opening a business is hard, and that includes food businesses like restaurants. Luckily for you, we listed down the tips you might want to follow to open your very own restaurant. It will only get harder from here on out, but if you do your research and have a lot of patience, you might just get your very own Michelin star in the next year or so.