Okay so I’ve been debating on whether I should open a restaurant. I have done research about everything and anything that I need to know to make it run smoothly and successfully.

The only problem is I’m just afraid of not knowing the outcome.

Here’s the background:

I am 25 years old and currently working for the state. I make decent money but I don’t think it’s nothing to brag about. It’s a typical Monday-Friday 9-5 office job. The job is cool and everything but I just can’t picture myself doing this for the rest of my life. I always wanted to be my own boss and would love to run a restaurant one day. I have a background in business management and I’m really good under stress.

A very close child hood friend on mine (sort of like a brother) opened a restaurant a few years back and is doing very good with it, so good that he wants to open another one near my location. He would only open it if I were to be the owner/ boss. He says that he’ll cover 75% of the opening cost and I’ll cover the rest.

Should I just take a risk and leave my current job and go into business with him. I’m afraid that if it doesn’t work out then I’m out of a job since the job market is just crazy right now. What do you guys think…anything would help. Thanks

 

What kind of restaurant? I guess it doesn't really matter, just make the waitresses wear something skimpy = win.

 

But on a serious note... I have no advice as to whether or not NOW is a good time to start a business, or what you could do to make it profitable if you did. I just think you should do what YOU really want to do. If you want to open a restaurant and thats what you've always wanted you to do than go for it. If its something you want enough, chances are you will do what it takes to make it successful.

 

There's nothing better than being your own boss IMO. I'd say if you can do it DO IT!

The richest people I know took chances like this. They are really happy people too because they did it themselves and came out big.

You'll never know if you don't try!

Just know it's a LOT of hard work and takes a LOT of time. So if you're lazy stay in your 9-5.

 

Someone correct me if I'm wrong..but wasn't there like a statistic regarding restaurants...like its a 75% failure rate or something? I remember reading some crazy numbers out there..

 

almost all of the failures are due to cash flow issues. frequently revenue is actually quite good.

so, make sure you have the starting capital you need to make it work..

 

Running a restaurant is one of the hardest small business's you can take on!
High turnover in labor and inventory make things a little tricky, but with superb organization and excellent time management skills it is possible to run a top notch restaurant. Also as mentioned by BT manging cash flow is vital. A lot of restaurants I have looked at and helped are actually making a profit, unfortunately their cash flow is all over the place.

Are you planning on running a "Full Service Restaurant" or "Limited Service Restaurant"

Full Service (NAICS: 722110): http://www.census.gov/cgi-bin/sssd/naics/n...0NAICS%20Search

Limited Service(NAICS: 722211): http://www.census.gov/cgi-bin/sssd/naics/n...0NAICS%20Search

The restaurant Industry Association is a great tool and worth joining.

Restaurant Industry Facts at a Glance: http://www.restaurant.org/research/ind_glance.cfm

State Facts: http://www.restaurant.org/research/state/index.cfm

I highly recommend you purchase the "Restaurant Industry Operations Report"
http://www.restaurant.org/research/o...ons/report.cfm (Includes a break down by average check size + many others)

What will make your restaurant unique and separate from all others around you?

Also have met with your local Small Business Development Center (SBDC)? They have experienced counselors that can help you develop a successful business plan for operations, and loans + they have access to a variety of resources and databases (RMA, SRDS, FSSB, etc..)
Its FREE. Actually there's no such thing as a free lunch, you have already paid for their services with you hard earned taxpayer $$$'s

Good Luck.

 

I agree with one of the post's above. If your lazy then its not for you. My dad has his own restaurant and that's his life. He basically lives in it and comes home to sleep. but he loves it and is doing well. If you have the dedication then go for it. If your buddy has the same restaurant and he's doing well chances are you probably will do well to.

 

Have you spent any time working at your friend's restaurant? Spend a weekend or two working there to make sure that's how you want to spend your days if you haven't already.

 

& ask to see his business plan. Then review it with someone knowledgable in the business. Very knowledgable. This is one where you need to do some serious homework before making a decision. Good luck.