Why Most Restaurants Fail

Deciding to open a restaurant because you make great chili and love to cook is the reason why most restaurants fail. Seriously! Everyone who has a dream to open their own restaurant needs to take heed that there is much more needed than the great taste of their chili and the love of cooking to succeed. Much, much more.

When opening your own restaurant, you must decide how much your time is worth to you and how much time you can afford to spend in your restaurant. If you are working 60 hours a week in your restaurant you will burn out and not be very productive in making it succeed. Most new restaurant operators get so caught up in being and working in their restaurant that they can't seem to think clearly about what is best for their operation. You need to step back and take an honest look at your operation and see if it is running to its fullest potential. If you have to be there, all the time, realize that you have bought yourself a job, not a business.

How about a "solid" business plan? Everyone thinks that they can make their plan up as they go along. How can you do that if you are working so many hours and are burning yourself out? How can you think clearly when you are overtired? Your plan has to be right from the beginning, before you do anything else. It should be what you base everything on. If you don't have a solid business plan your restaurant will fail.

Most budding restaurateurs want to design their menu and find their location first. Though these are important, they are not the most important facets of the business. They want to decorate and they dream of all the customers that will be lined up outside their door. They believe that by the power of the universe their restaurant will be special. Yes, it can be. If it is well thought out and it has a solid business plan to back it up, because without a business plan and some reserve capital new owners will soon find out why most restaurants fail.

Remember how important it is to have "reserve" money in the bank to carry you over until you start to make a positive cash flow? Money to pay for those set backs that you never dreamed would happen, yet always do. (Like a blown water heater or a deep fryer that just won't work)? Most new restaurant owners have limited resources, and that that is a major factor in most restaurants fail. Not enough money to carry you over until the money starts coming in.

So remember, when deciding to open your own restaurant consider everything that has to be done before you take the plunge. Start with a solid business plan first. Have your accountant and lawyer check it over for you. Know it like the back of your hand and do not deviate away from it.

The statistics don't lie!

Most new restaurants don't survive a year! A little insider information might be ALL that is standing between a profitable restaurant, and becoming another unfortunate statistic!

Before you spend a small fortune opening (or buying) a restaurant, I suggest you read my FREE report I've titled "The Restaurant Industry's Dirty Little Secrets. To get your free copy of this insider information click here to get the report!

There was a single, unforgetable event that made me mad enough to sit down and write this. It is my hope that another rookie restaurant owner won't lose their dream due to a lack of good information. To read more of that story click here

Today's Independent Restaurant Business Tip

for . Schedule everything and write it down! First time owners generally try to do things by the seat of their pants. The best way to get your restaurant up to the highest efficiency is to write all duties, deliveries, ordering times and job descriptions down. Then post them where everyone can see them. Don't forget to include scheduling for outside maintenance, window cleaning, grease company pickup, trash pickup and staff meetings!

Testimonial

I know that you get emails all the time but I had to write anyway. I don't believe in coincidences. The day after reading your ideas I found exactly the situation that I would have normally overlooked.
I'll let you know as things progress but I believe I've found my golden goose!
You should charge more than you do for your book, your information is of great value to me/anyone looking to start their own restaurant.
Thanks so much
(I'll email you my results soon)
Tannis Laughlin