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Investing in restaurants almost always takes place during the start up phase of a new venture, when the need for capital is high in order to set up the business from the ground up. Most restaurant investors know that it is a risky venture, with many businesses closing within the first year. But what is investing if not a risky gamble every time? When seeking to invest in a restaurant, whether it is a fast food franchise, a casual dining venture or a gourmet dining experience type restaurant, the investors first must consider several important parts of the business plan.
Is there a comprehensive business plan in place? In any investment venture such as investing in restaurants, there should be a detailed business plan that clearly defines absolutely every aspect of the venture
Research- know the area and what kind of restaurant will work best given the local competition and the desires of the local market.
Location, location, location- it is critical for the designated location of the business to be an ideal setup for reaching the desired demographics being sought for the restaurant. If the investment is a fast food franchise, it would be ideally situated near a college campus or areas where families with young children live or frequent. A gourmet dining experience might be best served to be located where the population is upscale and suitable for such a place.
Funds- upon a restaurant's opening, there should be enough liquid cash in the bank to cover at least four to six months of the business expenses. It takes time for a fledgling business to turn a profit. With a solid cushion in place, money worries do not have to factor in amid the startup worries.
Hire a competent attorney and accountant- the money spent to retain a good lawyer and a good CPA is easily returned in the amount of money and headaches that both can save the new business venture.
Article Source: http://EzineArticles.com/5922481
Is there a comprehensive business plan in place? In any investment venture such as investing in restaurants, there should be a detailed business plan that clearly defines absolutely every aspect of the venture
Research- know the area and what kind of restaurant will work best given the local competition and the desires of the local market.
Location, location, location- it is critical for the designated location of the business to be an ideal setup for reaching the desired demographics being sought for the restaurant. If the investment is a fast food franchise, it would be ideally situated near a college campus or areas where families with young children live or frequent. A gourmet dining experience might be best served to be located where the population is upscale and suitable for such a place.
Funds- upon a restaurant's opening, there should be enough liquid cash in the bank to cover at least four to six months of the business expenses. It takes time for a fledgling business to turn a profit. With a solid cushion in place, money worries do not have to factor in amid the startup worries.
Hire a competent attorney and accountant- the money spent to retain a good lawyer and a good CPA is easily returned in the amount of money and headaches that both can save the new business venture.
Article Source: http://EzineArticles.com/5922481