Building a business either small or big requires your interest/ideas plus resources for the better startup and ofcourse promotion for the targeted market to achieve your desired plan and the way to move on the same road ahead without any serious brake. Very few of us will really show our interest in starting such a business where nothing will be available in access but with everything will have the limitations like there will not be the solid idea or you will think that is not solid, there will not be the place for startup, there will be lack of money and the man power also. Dont be afraid because I am not trying to wash away your emotion for your small business startup but I am awakening you to be ready for the challenges like this and to be aware with the options to switch on during the high alerts of finance or any other heavy need to manage at the same time.
Some of the must have preparation before starting a small business, because at the time of taking action if you are searching that how to find the answers ? surely will touch the line of failure instead of getting success. Create a solid business plan :- A step by step guide is the essential tool to make your way more achievable and no doubt you will be only person to understand and follow the keys to find the gaps for better launching of the business to show the power to run that all for life and to control the limitations to non limitations of the target of the business in no time according to market stats related to the consumers demand and feel-good. Collect the resources :- Now if you are ready with your plans and step to cover that all should collect the resources like capital, knowledge, power because without that all of points you wont be able to survive in this competitive market and the user base will be easily remove your credibility because of little changing and offer from your competitors side. Setup the targets to achieve :- Finally its the time to work on your dream project and achieve the level you always wanted to be at and no doubt it will be more enjoyable to work with because getting a loose environment to work within after passing all the main blockers of every small business owner. And hence put the targets at your main aim to achieve in fixed period of working time. Manage the growth :- After achieving all the targets of your business life you have to manage the building you have created to live withing and get all the future goals because a business owner never ever will have the time to stop and take the break or leave the road to pass the competitors you had left far away during the targeting of your market and how to deal with the market main power that is non other than the consumers. Basics of the business is not easy as you may be feeling here in this article and planning to register a name of your company as a small business but that will acquire a whole life of learning in the packets of knowledge and also the process will be slow as you takes meal and takes time to digest that all.
New businesses face many challenges, from planning and licensing to opening bank accounts and creating a company website. Regardless of where you are in the process, The Company Corporation can help. Follow each step on our checklist to stay on the right track. 1. Write a business plan. Form goals and objectives for your new company. A successful start to any business requires a detailed outline of what you plan to accomplish. 2. Obtain start-up capital. Whether you use your own savings or obtain loans, starting a business requires money. The loan process can take months to complete, so start early. Lenders often request a completed business plan prior to approval of funding. 3. Set up a legal business structure. Forming a corporation or LLC can protect owners' personal assets from business debts. Additionally, incorporating can provide credibility and tax benefits. Let The Company Corporation help you incorporate or form an LLC online. 4. Register "Doing Business As" names. Will your corporation or LLC do business under a name other than its legal name filed with the Secretary of State? If so, it must file a DBA (Doing Business As) name. We can help you file your DBA name. 5. Appoint a Registered Agent. Businesses must maintain an address for service of process where legal documents can be received. The Company Corporation provides Registered Agent service for all companies that we form. 6. Protect your company's name. Businesses file names on a per-state basis, so other companies may be using the same or a similar name in other states. Conducting a trademark search ensures that your unique company name isn't already in use. 7. Obtain a Federal Employer Identification Number (EIN).Incorporated businesses and companies that hire employees must obtain an EIN. The Company Corporation includes this service in our Premium formation package. You can also order an EIN separately. 8. Satisfy business licensing requirements. The Company Corporation provides a Business License Compliance Packageto identify typical requirements for your business activities. Most state, county, and local governments require businesses to obtain licensing before they begin to operate. We can provide you with the application forms and contact information for the appropriate agencies. 9. Draft internal documents for the business. Corporations are governed by their internal bylaws, whereas LLCs are governed by an operating agreement. The Company Corporation can customize bylaws or an LLC operating agreement for your business. 10. Satisfy insurance requirements. Incorporating or forming an LLC does not provide a company with business insurance. Most companies obtain general business insurance from an insurance provider. Corporations and LLCs that hire employees also typically obtain unemployment and workers compensation insurance. 11. Establish a business presence. Identify a location for the business and establish a business address. The Company Corporation offers regular mail forwarding service in either Delaware or Nevada. 12. Develop business collateral. Businesses use customized letterhead, cards, and forms with their company name and logo to establish credibility. Vista Print makes "do-it- yourself" business cards, business identity products, advertising products, and signage a snap. 13. Open a bank account and merchant account. To protect their corporate or LLC veil, businesses must maintain separate business and personal accounts and records. Establish a separate business bank account so that your personal assets are not co- mingled with business funds. Banks may also require an Employer Identification Number (EIN) in order to open a business checking account. 14. Establish proper accounting procedures. The Company Corporation understands that paying your taxes is only part of the picture when it comes to setting up your business. Whether you need help setting up your chart of accounts, have questions about completing a specific tax form, or need answers to tax questions we can help. Request a 30 minute consultation with a recommended accountant to discuss your unique situation and get the answers you need. 15. Identify where to get help. Smart business owners know where and when to seek advice from other sources. Identify attorneys and accountants in your area who can assist you with specific questions about your business, or contact us to help identify a solution to meet your needs. 16. Get started. Schedule an opening day for your business. Giving yourself a goal helps keep things on track and can increase your productivity. 17. Complete additional filings as needed. Companies that expand to do business outside their original state of incorporation or LLC formation generally register in the those additional states. The Company Corporation can assist with these registration filings, also called "qualifications." Amendments can also be filed if the information listed on the formation document, like the legal name of the company or address, changes. 18. Follow government rules. Operating a small business means satisfying ongoing government and legal requirements to maintain the company's good standing. Stay aware of the steps needed to maintain your company's status, and take advantage of The Company Corporation's Rs. 50,000 Corporate Veil Guarantee, provided at no cost with our Registered Agent service. SET UP A RESTAURANT BUSINESS Starting a restaurant business in India can be time-consuming and demanding since you have to consider a number of factors. You must critically consider the location of your business, the target market and start-up capital. Most Indian foods include a delicate blend of spices such as ginger, chili, garlic, cinnamon and turmeric as well as coriander powder. Indian cuisine also consists of a wide range of vegetables including spinach, cauliflower, tomatoes and green beans.
Starting a restaurant takes a great deal of time, consideration and money. Purchasing equipment for the kitchen requires high upfront costs, but you probably won't need every piece of equipment listed in the catalog. Sit down with your head chef and kitchen manager before you buy in order to use startup money most effectively. Choose quality, long-lasting equipment that won't falter when your business is getting off the ground.
Success in any new business begins with a business plan, and a restaurant is no exception. Developing a business plan to start up a restaurant should begin with an executive summary, which presents an overview, or summary, of the plan.
The restaurant business plan functions as a blueprint to guide the business owners from the initial startup into the first three to five years of operation. A startup business plan for a restaurant documents every detail of the restaurant's operation. CHOOSING CONCEPT
The Main Categories or types are:
Family Dining: Family style restaurants are restaurants that have a fixed menu and fixed price, usually with diners seated at a communal table such as on bench seats. More common in the 19th and early 20th century, they can still be found in rural communities, or as theme restaurants, or in vacation lodges.
Casual dining restaurant is a restaurant that serves moderately-priced food in a casual atmosphere. Except for buffet-style restaurants, casual dining restaurants typically provide table service. Casual dining comprises a market segment between fast food establishments and fine dining restaurants (see also Fast casual restaurant). Casual dining restaurants usually have a full bar with separate bar staff, a larger beer menu and a limited wine menu. Fine dining restaurants are full service restaurants with specific dedicated meal courses. Dcor of such restaurants feature higher quality materials with an eye towards the "atmosphere" desired by the restaurateur. The wait staff is usually highly trained and often wears more formal attire. (Source: wikipedia) Ethnic Restaurants: Chinese, Italian, Mexican, Caribbean, English, French, German, Indian, Japanese, Korean, Mediterranean, Thai and Vietnamese. CONCEPT OF A RESTAURANT
The Different Types and Concepts of Restaurants The core menu concept is the main product line of your menu (italian food, hamburgers, etc.) and this will define your decor, ambience, and style of your restaurant establishment. Restaurants are generally classified into three groups:
1. Quick Service - Also known as fast-food restaurants. They offer limited menus that are prepared quickly. They usually have drive-thru windows and take-out.
2. Mid scale - They offer full meals at a medium price that customers perceive as "good value." They can be full service, buffets or limited service with customers ordering at the counter and having their food brought to them.
3. Upscale - Offer high quality cuisine at a high end price. They offer full service and have a high quality of ambience.
Asian Restaurant - specializes in cuisine from the Asian region
Breakfast Restaurant - specializes in providing breakfast for at least 6 days per week
BYO Restaurant - Restaurants and bistros which do not have a liquor license
Casual Dining - Offer comfortable atmospheres and have mid-range prices.
Chinese Restaurant - specializes in Chinese cuisine
BUSINESS PLAN Not everyone who starts and runs a Restaurant business begins with a business plan, but it certainly helps to have one. If you are seeking funding from a venture capitalist, you will certainly need a comprehensive business plan that is well thought out and contains sound business reasoning. If you are approaching a banker for a loan for a start-up business, your loan officer may suggest a Small Business Administration (SBA) loan, which will require a business plan. If you have an existing business and are approaching a bank for capital to expand the business, they often will not require a business plan, but they may look more favorably on your application if you have one.
Reasons for writing a business plan include: Support a loan application Raise equity funding Define and fix objectives and programs to achieve those objectives Create regular business review and course correction Define a new business Define agreements between partners Set a value on a business for sale or legal purposes Evaluate a new product line, promotion, or expansion
What makes a successful business plan? A well thought out idea Clear and concise writing A clear and logical structure Illustrates management's ability to make the business a success Shows profitability
CHOOSING A NAME FOR YOUR RESTAURANT
Choosing the right name will help you sell your product, stick with your customers and influence your decorating and advertising. You will want your customers to be able to remember and spell your name in case they need to look it up in the directory or write you a check. Think about how will your name represents what you have to offer on your menu. Will it set you apart from your competition?
Remember business names can already be taken and registered under a trademark, which means they have the exclusive right to use it in a geographical area. If you have infringed on someone else's name, it could cost you money.
Registering your name: You will need to register your business name with your state. You can do this by contacting the Secretary of State's office and requesting the forms that you will need to fill out. Also, ask them how to search for state trade marks to see if any part of your name is registered. You may need to do this, also, in your county at your county clerk's office.
CHOOSING A LOCATION FOR YOUR RESTAURANT
Here are you going to put your new restaurant? Some important things to think about that may help your business become a success are:
Traffic : Foot and motor traffic counts and surveys are an important start. You can get traffic counts from a real estate firm, demographic firm, planning commission, or highway department. You will want to pick a location that has high traffic counts at the peak times you serve your food. One way is access this is to park at the site at different times of the day, including week-ends and get some figures for yourself. If you are in a downtown area you will need to access the foot traffic. The type of foot traffic will also have a bearing on the concept you choose.
Visibility - Corner locations are great if access from traffic is easy. End locations are the best idea for strip malls. Free standing restaurants with lots of parking are ideal. Signs can help your visibility, but are heavily regulated by city regulations as to the size and locations they can be put. Downtown locations should consider using sandwich board signs or easels to put daily specials on outside to draw attention to foot traffic.
Readily Accessible Parking - This is a must, customers need to be able to find a place to park or they may consider it to be more hassle than it's worth, especially if they are in a hurry. Strong population back-up - near a high school, college, university, office buildings, dense residential areas or high traffic commercial areas.
Accessibility - Customers need to be able to get to your business with ease. Median strips that don't allow for a left-hand turn make it hard for your customers to get to your business. Highly congested traffic areas may also discourage them. Size - Will the site handle the projected amount of customers your are planning on having?
Price - Make sure the price of the site or lease amount fits your projected break-even or you may just be buying a lot of work with no pay.
Condition of the site - How much money will it take to build there or if it is an existing building, how much money will it take to remodel or repair?
Road Construction - Always check with the highway department and local agencies to see what improvements or changes are planned for the ares. We bought an existing restaurant only to have all access roads torn-up for improvements and lost 3 months of sales.
Crime - Another thing to consider is whether or not this is a high crime area, people may not stop if they don't feel safe. Destruction of property, robbery and employee safety are other considerations.
RESTAURANT DESIGN - RESTAURANT LAYOUT
Every facet of restaurant design and layout is a product of the goals and concept of the business. The bigger the goals and concept, the more resources should go into design elements. The menu, clientele, and price points should all support the layout of the restaurant to create a single concept. Finally, design elements should support each other. No single element should stand out from the others without wanting to point customers in that direction.
Costs: Its tempting to cut corners when designing the layout of a restaurant. But doing so can lead to long-term problems and unnecessary renovations. As with any investment, its important to consider a ten- or twenty-year business plan when deciding where and how to spend money during the design process. Costs should be funneled toward elements where revenue is generated. For most restaurants, this includes the entrance, lobby, bar, and dining room. An upscale restaurant has to have upscale furnishings and design elements. A casual restaurant cant overlook the need for a new, clean atmosphere. The bottom line is that guests have great food and a clean, comfortable environment in which to enjoy it. A restaurant operator has to be willing to spend what it takes to achieve this.
Space: The amount of space in the building is usually a product of the property and the type of lease/mortgage. How that space is allocated at least in the case of a new property is another story. Ample space has to be given to the kitchen for food storage and equipment. An area for staff and a managers office are necessary. Otherwise, revenue-generating areas must be maximized. This includes the dining area, bar, and hostess stand, all of which should be large enough to accomplish the goals of the business.
Entrance: The entrance is the first and last impression your business makes. It has to be inviting, and it has to capture the essence of your restaurant. It should be big enough for guests to gather if theres a wait, but not so big that it takes space away from the dining room and bar. A good entrance contributes to the natural flow of a restaurants layout. It sends guests on their way to a revenue-generating destination. It provides a platform for the buzz of the building. Something positive should be happening inside your building whether its great food, a crowded bar, or a banquet event. This should be visible from the entrance, and convince guests to enter.
Kitchen: The kitchen has to have adequate space for all of the necessary equipment, plus ample room for employees to work. Necessary equipment can include ovens, stoves, broilers, fryers, a dish machine, triple sinks, and plenty of shelf space. A prep area and industrial sinks usually accompany dry storage space. The kitchen should be just large enough to accomplish the goals of the restaurant. Employees should be able to move comfortably and safely in a fast-paced, high-stress environment.
Food storage area: There must be plenty of room for food storage. This includes a walk-in refrigerator, a walk-in freezer and a dry storage area with plenty of shelf space. A new, roomy walk-in refrigerator is a wise investment for a new restaurant, since refrigeration failures are common and can lead to serious losses. Storage space should be in a corner or far wall of a kitchen, and preferably near the managers office. This way, it will be more secure and less prone to theft. Office: The managers office should be as small as possible, while still allowing business to be properly conducted. It should be in a secure location of the building, far from the dining room, employee area, and buzz of the kitchen.
Employee Area: There must be space for employees to congregate, store personal belongings and hang coats. There must also be room for important information to be communicated, such as work schedules, managerial notices. The best opportunity to create this space is usually in or next to the kitchen area.
Dining Room: When designing dining room layout, a few questions stand out. Tables or booths? Open or tightly packed spaces? Dark or bright colors? Modern or classic fixtures? The answer to these questions comes with the clientele your business covets. The important point is that finding a middle ground with any of these questions usually makes a dining room attractive to all customers. A dining room should have a natural flow, from the lobby to the bar to the dining room to the kitchen. Enclosed spaces and partitions generate opportunities for large parties and banquets. In many cases, a healthy combination of booths, tables, large tables and private spaces give the best chance to maximize revenue.
Bar: The bar has to fit into the concept of the restaurant. At the same time, it should stand alone as a comfortable destination for any dining experience your restaurant offers. A great bar space does both, while being visually inviting and highlighting the products the bar hopes to sell.
THE INS AND OUTS OF RESTAURANT EQUIPMENT
The type of you will need for your restaurant depends on the type of service you provide. For example, if you are a full-scale restaurant you will need many more equipment items that a small mom and pop store will need. If you are a , you will need different items than a restaurant along the lines of Ruby Tuesdays.
There are so many different types of restaurant equipment available throughout the world that it will be in possible for me to write about them all. Therefore, I have chosen a few fascinating pieces of equipment to help you in your search and maybe make your job or that of your employees job a little easier along the way.
You should give serious consideration to investing in a reliable food processor. They save time and labor. The way in which your food is processed, how you chop, slice, mix, grate and blend will greatly affect the amount of time it takes to provide the ending result to your customer. By investing in a quality food processor you are investing in a piece of restaurant equipment that will provide safety, better time management and essentially better results.
The refrigerator is the most critical piece of restaurant equipment you can ever buy. Keeping cold foods cold is essential to food quality and the extreme importance of food safety. Invest in a refrigerator that will show you the temperature accurately on the outside of the equipment. Find a refrigerator that is tough and built to last, with proper usage.
Delivering cold and hot beverages is extremely important to the success of your restaurant. This piece of restaurant equipment should provide a quick and efficient way of dispensing the beverages. You will need a well-designed layout to deliver the best product to your customers. A soda tower has the ability to dispense six different beverages and has an ice dispensing point. The ice dispenser should hold around 100 to 150 rupees of ice.
Fried foods are as popular as ever. To keep pace with the demand, today's frying equipment offers features that save time and money and help you prepare consistent, quality products. Commercial deep-fat fryers are complex pieces of equipment designed to turn out load after load of perfectly fried foods. Today's frying equipment is made to be safe, , and easily cleanable. Energy efficiency is easy for electric fryers since the heating elements are immersed in the frying medium, giving the highest possible efficiency from the electric source.
Gas fryer manufacturers made their products more energy efficient. Gas fryers heat the food either with a burner under the fry pot or by injecting the gas flame into tubes running through the fry pot. Recently, manufacturers have introduced infrared burners and various types of baffles in the tubes to distribute heat more evenly, extract more heat energy from the fuel, and reduce waste heat needing to be exhausted.
MENU PRICING The first step in pricing a menu is to have a food cost goal. The second step is to be loyal to it, no matter what. These two steps represent the nuts-and-bolts of your kitchen and its presentation to your guests. Restaurants soar with food cost loyalty and sink without it. Creating a menu with price points that maintain sound food cost should be the cornerstone of your kitchen. The food cost a restaurant maintains depends on the type of restaurant. One major, well-known sandwich/bread-style national chain maintains a food cost of around 26%. Another, well-known national steakhouse chain keeps its food cost at around 33%. Of course, for national corporations healthy cost goes hand-in-hand with the power of bulk purchasing to reduce costs. However, you get the point. A lunch- style diner should have a food cost below 30% and a dinner-style chophouse or seafood restaurant can expect food cost to be a little higher. Your menu prices have to make these goals reasonable.
Include Everything When creating your menus prices, be sure to cost out the <em>entire</em> entre. Every sauce, ingredient and garnish should be included when determining the total cost of a menu. Many operators like to use a plate-and-table wraparound cost that covers the average sum of ingredients that arent essential to the recipe but which are used nonetheless. A wraparound cost would include items like bread, butter, salt and pepper. This should be part of the cost of your entre, and is a factor in determining their total cost. However, its more accurate to take the time to price out each specific ingredient on a spreadsheet and add it all up. Easy-to-forget items include: - A lemon wedge for the salmon entre - Kale or lettuce garnish - Bottled sauces like Worcestershire or A-1 - Ketchup and other condiments for french fries - Mints for the hostess stand
CHOOSING A FOOD SERVICE PROVIDER
Reliable food service distributors play an important role in the success of your business and you will want to choose a distributor who provides good quality products with prompt consistent delivery. You can find food service vendors online , in the Yellow Pages or by attending restaurant conferences or trade shows . Ask other restaurants in your area who they get their products from. Ask which suppliers they like in particular and why. You will want reputable vendors who can provide the products and services you need at a price you can afford. But, try to keep the number of vendors at a minimum to cut down on the time of placing and receiving orders. Your first step after choosing your vendors would be to set up an account. You can do this by phone, mail or you can meet with a sales representative. Many distributors will set up cash or check only accounts until a credit rating has been established. Setting up the day and time for deliveries is important. There needs to be someone to log-in the delivery, check the food temperatures and put the products away. Also, you don't want your deliveries to come when you your restaurant is busy. The trucks are large and take up parking space and may block entrances. Placing you orders with your distributor in some instances, such as with sysco Food Services can be done online. Your distributor may have a sales person call you for your order and/or to remind you to place your order. They will usually have a reminder list of items you order frequently to make sure you don't leave anything out. Some questions to ask the distributors are:
Do you deliver on weekends? What are your credit terms? What is the minimum order? What is the lead time for placing an order? What is the delivery schedule for your area? Will you call in advance to let me know if your are out of a product? Will deliveries be disrupted during labor disputes? Do you place food items in the walk-in coolers or freezers? Do you break cases (meaning one gallon of an item, instead having to buy fa case)? Do you honor competition pricing? What the return policies are for items that may be open, broken, or leaking when they are delivered? What products will be subject to seasonal pricing?
Your distributor salespeople are important to your business and developing a good working relationship with them will help you succeed. If you run out of a product or forget to place your order, they can help you get the products you need. They are also, a great source of industry information.
Remember your sales and delivery people eat out and talk with a lot of people in the community so train your staff to be courteous and to have a pleasant environment for them to deliver their goods. Offer them a cold drink or cup of coffee and make sure you have a designated area that is kept open for them to deliver their goods.
LEGAL STRUCTURE
Sole Proprietorship A sole proprietorship - a type of business entity which legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. All debts of the business are debts of the owner. The person who sets up the company has sole responsibility for the company's debts. It is a "sole" proprietorship in the sense that the owner has no partners. A sole proprietorship essentially refers to a natural person (individual) doing business in his or her own name and in which there is only one owner. A sole proprietorship is not a corporation; it does not pay corporate taxes, but rather the person who organized the business pays personal income taxes on the profits made, making accounting much simpler. A sole proprietorship does not have to be concerned with double taxation, as a corporate entity would have to.
A sole proprietor may do business with a trade name other than his or her legal name. In some jurisdictions, for example the United States, the sole proprietor is required to register the trade name or "Doing Business As" with a government agency. This also allows the proprietor to open a business account with banking institutions. Under a sole proprietorship, you can lose your personal assets, (home and car, etc.) if you go bankrupt.
Partnership A partnership is a type of business entity in which partners (owners) share with each other the profits or losses of the business undertaking in which all have invested. Partnerships are often favored over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profits before it is distributed to the partners (i.e. there is no dividend tax levied). However, depending on the partnership structure and the jurisdiction in which it operates, owners of a partnership may be exposed to greater personal liability than they would as shareholders of a corporation. Make sure you have buy-out insurance for each partner
Legal Structure of Your Business You have two options when setting up your own food /restaurant business. You can trade as a Sole Trader or you can set up a limited company. Trading as a Sole Trader is very straight-forward, you automatically become a sole trader by starting a business on your own. If you set up a limited company, it is a separate and distinct legal entity and separates you from the company. See www.westmeath-enterprise.ie for the advantages and disadvantages of setting up as a company. The Enterprise Board can advise you on the most appropriate option for you. If you are considering setting up a limited company, it is advisable that you seek professional advice from an accountant or solicitor.
Take note if you establish a limited liability company, you are now required by law to disclose certain information on your letterheads and order forms. The information includes the name and legal form of the company, its trading name, information on directors of the company, the companys place of registration and registration number, the address of the companys registered office. For a complete list of all requirements log onto www.odce.ie (Office of the Director of Corporate Enforcement) Please note that you are also required to display your name in legible characters on all other company documents including invoices, cheques, money orders and receipts.
Registering for Income Tax and VAT Once you have decided on your legal structure, you can register for Income Tax with the Revenue Commissioners by completing a TR1 Form if you are a Sole Trader or a TR2 if you have established a company. These forms ask you for your personal details (name, address, telephone numbers etc), the nature of your new business, when you commenced in business and where you will operate the business from. You can also use this form to register for VAT and if you are taking on employees, to register as an employer. If you need assistance completing the form please contact the Enterprise Board.
It is more than likely that you will also need to register for VAT. VAT is a consumer tax. It is collected by VAT registered traders on their supplies of taxable goods and services. Each trader pays VAT on goods and services bought by the business and charges VAT on goods and services sold by the business. You can voluntarily register for VAT at any stage but you must register for VAT if your turnover exceeds Rs. 35,000 if you are supplying a service and Rs. 70,000 if you are supplying goods. The VAT rates you charge and collect vary depending on the type of business you are operating. A full listing of VAT rates is available from the Revenue Commissioners. You can register for VAT when completing a TR1 / TR2. The Revenue Commissioners will then issue you with a VAT number and it is your responsibility to keep proper VAT returns. Remember if you purchase equipment in a six month period prior to registering for VAT, you will be able to claim back the VAT paid on your purchases.
Registration of Business Name Your business name is important and you should take time to choose it carefully. The right name will be : Unique Easy to remember, pronounce and spell Informative Create the right image Easily accessible from Telephone Directory Enquiries
Remember to check that the domain name is available, and see how your name works in ads and tag lines.
If you decide to call the business a name, other than your own name, it is advisable to register your Business Name with the Companies Registration Office (even if you are a sole trader) as you may need it to open up a Business Bank Account or apply for a Restaurant Licence to sell beer /wine.
You will then be issued with a Certificate of Business Name, which must be displayed in your business. This does not protect anyone else from using your name, nor does it imply that you are entitled to use of the name. Business Name registration simply involves an individual disclosing that you are carrying on a business under a name which does not consist of your own individual name. It is just a trading name and does not have any limited liability.
Intoxicating Liquor Regulations Before you can sell, supply or consume intoxicating liquor, the law requires you to have an Intoxicating Liquor Licence. Restaurants have a choice of three licences that they can apply for including :
Special Restaurant Licence requires an application to the Circuit Court. Prior to the application, the premises must satisfy the requirements of Health Authorities and must be registered under the relevant Food / Hygiene regulations. Under this licence the serving of liquor must form part of the meal service and permitted hours of trading are defined in legislation.
Restaurant Certificate is distinct from a Special Restaurant Licence and is granted by the District Court. The benefit of this licence is that a restaurant is able to serve intoxicating liquor with meals at certain times after normal licencing hours and can apply for special exemption orders.
Limited Restaurant Certificate permits the holder to serve intoxicating liquor with meals in a specially nominated part of the premises, set aside for the provision of meals, as if the area were a restaurant.
RESTAURANT MANAGEMENT
Employees (Hiring - Terminating) 1. Where To Find Them 2. Choosing a manager 3. Interview Skills - What to look for, questions to ask & questions you can't ask. 4. How to check references 5. Verification of previous employment form 6. How To give references 7. Hiring Minors 8. Employee Hygiene 9. Terminating Employees 10. Job Descriptions 11. Employee Interview Form -document impressions and observations gathered during a prospective employee's first interview. 12. Handling Layoffs 13. Staffing a Seasonal Restaurant 14. Young vs Veteran Employees 15. What To Look For In A Chef 16. Hiring The Right Host Staff 17. Controlling Labor Costs 18. Re-Training Techniques 19. Putting Together a Management Team 20. Watching for Theft: A Manager's Guide
Employoee Tax Forms 1. I-9 (pdf) 2. W-4 (pdf) 3. Form W-5 (pdf)
Keeping and motivating employoyees 1. Ways to Motivate Employees 2. Employee Benefits 3. Why Workers Leave by Bill Marvin 4. How To Reduce Turnover
Training Employees 1. Customer Service 2. Customer Complaints 3. Food Safety 4. Preparing an Employee Handbook 5. Preparing For Holidays 6. Common Training Mistakes
Marketing 1. The Value of Discounts 2. Successful Restaurant Marketing Through Social Media 3. Using Gift Certificates and Coupons to your Advantage 4. How To Attract Corporate Business 5. Why You Must Hire a Marketing Manager 6. The Value of Customer Loyalty Programs
Events 1. To Proper Way to Execute Large Parties 2. Why Your Restaurant Should Cater 3. Why Having No Reservations Rules for Large Parties Works Specials/Special Requests 1. How to Handle Special Requests 2. Tips for Creating Specials 3. How To Deal With Pushy Customers
Record Keeping 1. Sample Record System 2. How Long To Keep Records 3. Kinds of Records To Keep 4. Record Keeping - Why Keep Records? 5. Why Your Restaurant Must Have Scales 6. Quick Books
Wines and Liquor 1. Value of Mid-Range Wines 2. Value of Staff Wine Tastings 3. How To Rejuvenate Your Bar 4. How To Sell Wine To Your Guests
Keeping Your Restaurant Safe: 1. Work Safety 2. Food Safety 3. Food Product Recalls
Keeping Your Food Business Clean 1. Cleaning Tips 2. Cleanliness
Critical Areas For Success Lighting Music HIRING A MANAGER
If you are a small restaurant, just starting out, you may not need a manager. But if your restaurant is really busy or you own more than one, hiring a manager is a good idea.
The manager's greatest responsibility is to make sure that customers have a pleasurable dining experience. Your manager can either make or break your business, so hire carefully. Depending on the size of your operation, you should only need one. Some restaurants will have their manager hire and train one or more assistant managers. Its important to hire someone with several years' experience working in a restaurant as a waiter/waitress or kitchen helper and he/she should be able to jump in and help fulfill any position in the dining room. An entry level manager will earn between Rs. 22,000 to Rs. 26,000 a year and a seasoned manager will earn from Rs. 30,000 to Rs. 40,000.00 per year. To avoid any employment legal problems, it is important to pay your managers overtime if they perform more than 40 hours a week, even if they are in a salaried position. Always check with your state and federal labor laws, your accountant and your attorney to make sure you are in compliance. Qualifications - Organized, tactful, friendly, quick-witted and calm, posses leadership skills, and an understanding of the hospitality industry. Responsibilities - Be able to open and close the restaurant, purchase food and beverage supplies, manage the cash register, track inventory, hiring, training and firing staff; and creating work schedules and monitoring their performance, develop marketing strategies, supervise personnel and schedule your staff, resolving customers' complaints and ensuring health and safety regulations are followed, keeping employee records for hours and wages, preparing payroll and filling out paperwork for taxes, wages, employment insurance,etc., and tallying cash and charge receipts and balancing them against the record of sales.
Continuing Online Education eCornell - All you need is a computer to access top-notch education in Food and Beverage Management. Cornell University's School of Hotel Administration is the industry's premier management school. Each online course was developed by a faculty member and is available exclusively through eCornell. Penn State's career-focused online hospitality programs in Hotel, Restaurant, and Institutional Management (HRIM) allow you the opportunity to create your own customized professional development plan whether you are interested in taking a single course, earning a hospitality management certificate, or even completing your associate degree.
DECORATING YOUR RESTAURANT
Decorating Your Restaurant's Interior You already know that your restaurants interior design is one of the most essential aspects of your businesss presentation. But you didnt dive into this industry because of your interior design skills. Most people leave the design of their restaurant up to an independent firm or adopt the design of a previous ownership. But you have to have some control over the appearance of your building. Interior design principles are the primary statement your building makes to many people. The look and feel of your business is captured by the design of your dining room. It is the first thing most people notice when they enter your restaurant. Therefore, you must find a design firm or independent contractor who knows what they are doing, and is willing to work with you to execute your vision. Unfortunately, a basic tenet of interior design is that it is always more expensive than it should be. A second basic rule is that it is inherently painful to pour start-up capital into your buildings appearance without having earned a dollar yet. You know the building has to look right. But how to maximize attractiveness while sticking to a budget? The answer is probably that you cant, but follow a few basic rules to get as close as possible.
Shop Around Youve shopped around for everything elsevendors, maintenance, HVAC, employees. Why not work to find the right interior design company? Sure, its common sense. But shopping around means asking other operators who they use, working the phones and counter-offering until you find the right company. This is especially true if you are entering a brand new building. Retro-fitting a pre-existing building is a little easier. If capital is an issue (as it always is), it can be worth it to plan for a minimal open appearance, and add design accoutrements along the way. Also, be prepared to miss something essential and have the resources to fix it quickly. A restaurant I know of once opened without blinds on a wall-length row of vaulted window, blinding any guest facing that direction during the early evening hours (of which roughly a third were). Rest assured that had to be addressed pretty quickly.
Have a Discernible Theme A discernible theme that ties in with the name or cuisine (or both) of a restaurant is a great way to spread your companys brand/identity. A theme should be present enough to be noticeable. However, the days of cramming a theme down a guests throat have (thankfully) disappeared. Discernible themes that have value without overwhelming the guest can be present in any or all of the following: Paint schemes Artifacts/keepsakes Pictures/wall decorations Trim/woodworking Architectural design Lighting Naming of rooms/tables Finding a way to convey your theme with subtlety can be easier said than done. I knew of a restaurant that was designed in such a way as to evoke a different season with each of its four dining rooms. The only problems was that few, if any, guests noticed the theme. On the other hand, its hard to miss the theme at a Hard Rock Caf or Rain Forest Caf franchise. And its also hard to miss the theme at Chuck E. Cheese. Leave the flair to T.G.I. Fridays and decorate your restaurant with a theme that is recognizable, but remains in the background.
Be True to Yourself Its worth it to consider the clientele you are coveting. For example, a restaurant that is working to attract female clientele will be more likely to have soft lighting and bright colors. A chophouse built as a male haunt might incorporate dark mahogany and brass trim. The cuisine can also be a factor. Seafood restaurants might be washed in teal or blue, while an Italian restaurant might have relics from the Mediterranean.
Let the Experts Handle it Maybe you can decide between sconces or insets behind the bar. Or you know whether to use banquettes or booths, with chandeliers or hatbox lights over them. But most restaurant operators dont. Its important to hire a solid architectural design firm for your front-of-the-house, just as it is for your kitchen. Then give them your vision, oversee the project, and get out of the way.
HOW TO CHOOSE PLATE AND GLASSWARE Of the countless tough decisions that operators must make prior to opening the doors, buying plate and glassware would seem like one of the easiest ones. Buying plate and glassware is like playing offensive line in the NFL you only get noticed if you make a mistake. On the other hand, following a few rules can make the product-buying process a little easier in the long run.
Use a Trusted Restaurant Supplier This is one of the many scenarios in which having a personal relationship with a restaurant supply vendor can make a huge difference. Unfortunately, theres no ratings guide system on plate and glassware, and its very hard to get user feedback. This means its nearly impossible to hear how supplies hold up over time. A solid vendor representative can give anecdotal accounts of how different pieces work, and what items to avoid. Vendor reps need trustworthy relationships. They also need business, and lose out on it when they steer you wrong.
Buy a Brand Name Sure, brand names cost more. But its worthwhile to have a brand name with supplies that have held up over time in restaurants around the country. There will be plenty of time in the future to work the phones to shop around and come up with the best price. This is one area in which its worthwhile not to skimp, but to buy the products that work.
Try it Out First Getting samples is always a good idea before making a big purchase. Without first using the items, its impossible to know if the ridges in the glassware make all the ice slide down at once when drinking, leading everyone who uses them to spill ice on themselves. Without using plates first, its impossible to know if theyll stand up to the heat lamps if they have to sit in the window.
Keep Spares In-house Having a spare box of plates or glasses may not seem like a big deal, until a large party is a half-hour from arrival and you realize you dont have enough water glasses. Its much better to over-order and have a box ready than to have to tell the bride and groom of a rehearsal dinner that a few of their guests may not be able to enjoy water. In-house spares arent cheap, and over-ordering flies in the face of conventional ordering wisdom. But having extras can save huge headaches, and save money in the long run.
FINANCING YOUR RESTAURANT
Most banks and lenders require you to put some of your own money into the business and contrary to popular belief, they do lend money for businesses. The more experience you have in the field, the better so take a part time job in a restaurant and/or take some classes to help you succeed in getting the funding you need. Places you can get financing are Small Business Association Personal resources - Savings, Ira accounts, Credit cards, home mortgages, and personal assets, family or friends. Private investors - also known as "angel investors". Go to angeldeals.com for more information. "Angel investors" are the largest pool of capital in the United States. Typically entrepreneurs find "angel investors" through net-working with people across the industry. Commercial finance companies, such banks and equipment leasing companies. Friends and relatives (be careful to arrange the loan in a business-like manner. Draw up papers stating the loan repayment schedule and interest to be charged. Real-Estate assets. You may have enough equity in your home to finance your business. Life Insurance - You may carry a life insurance policy that has a loan value. You can borrow on the cash value at a low interest rate. Housing and Urban development - Sometimes the Federal Government's HUD will provide loans to restore and rehabilitate buildings in certain areas. They won't finance your business, but may provide renovation funds. The basic loan application includes a written statement in which you describe your business plan . You will need to include how this business will generate income, define at what points you will need an injection of cash and explain how you will use the requested loan proceeds. Also, include an explanation of how the loan will be repaid. There are many business plan software programs you can use. It is best to have the money in place about six months before you need it, including in it enough cash to carry you through two months of business.
Tips: 1. Shop around for the best interest rate and terms. 2. Get your financing before you negotiate your lease. 3. Get your loan agreement in writing. 4. Hire an accountant or lawyer to review your agreement before signing. 5. Make sure there is no prepayment penalty. 6. If you choose a venture capitalist, make sure you maintain control running your business. 7. If you get a construction loan, make sure you only pay interest on the commitment as you use it.
CASH CONTROL SYSTEMS The industry averages show that between 2-4% of sales are lost to theft or cash mishandling. You need systems to to keep track of the money from the time it leaves the customers hands until the time it is deposited in the bank.
Have a written cash/credit handling policy. Have forms that employees can enter refunds given to customers and showing credits for mistakes made. This form should have the time, date, amount and employees signature.
Limit access to the safe. The safe should be kept locked at all times. Most safes have envelope size areas allowing money to be dropped in ( drop safe).
Keep the opening and closing cash, used to make change for the customers, the same all of the time. Make sure the money is counted at opening and closing, dated and signed by the employee.
Paid-outs should be entered on a form with the time, date, signature and receipt stapled to it. Paid-outs should be deducted from a petty cash fund if possible and not from the daily deposits or cash drawers.
Do a cash drop for each shift. One person should be responsible for each shift deposit. Have them enter a log with the amount of the deposit, total sales for the day, date, time and signature and have them put this on the envelope that is to be dropped into the safe.
Make bank deposits daily, keeping each days deposit separate and attach the bank deposit slips to daily cash reports
A Key and safe combination access log should be maintained. Keys should be numbered and a log should be kept with information on the person having the key. Have written standard cash register procedures - what types of checks to be taken, no out of town checks, what types of id shown and if it should be for the amount only, etc.
Use registers with a cumulative register reading - This is like an odometer on a car, keeping a running total of the sales, coupons, etc. Incorporate theses readings in the daily sales report.
Use a register that has the transaction visible to the cashier and the customers. Secret shoppers take note of these transactions to make sure the employees are not under- ringing sales.
Sales should always rung up at time of the transaction and a cash receipt should be given to the customer.
Cashiers should place the customer's money on register ledge until the change is made. This way if the customer says he gave a larger dollar amount, the cashier has it right there to confirm it.
Cash registers should not be left unattended. Money should not be exchanged from register to register if multiple registers are used.
Do a Z reading each day. This clears the register of the previous days sales. This reading should be attached to the daily cash report.
Follow up on your banks deposits to make sure your money has been credited to you account. Go through your bank statements line by line and check to see that no deposits are missing and each one is entered accurately. Banks do make mistakes. The janitor found one of my deposits that I had dropped off behind a counter while cleaning at my bank.
Inventory Method: The most accurate method of determining monthly raw food costs is the inventory method. This is done by accurately counting the inventory in all storage areas, Coolers and Freezers and the determining the dollar value of the inventory. The formula for determining raw food costs using this method is: Choose a unit of measure for each food item. It is best to use the same unit of measure that your food service provider uses. (Examples are: beef, by the pound or canned foods by the can, etc.) and determine a price for each unit of measure.
Take an inventory of all your food items. This will be your beginning inventory or opening inventory. Use a spread sheet with 8 columns. 1. Place the name of the item in column 1. 2. Put the amount of your starting inventory in column 2 (name this column open). 3. Put the new deliveries in column 3. (Name this column del.) 4. Add columns 2 and 3 together and put the total in column 4. (Name this column total) 5. Put the number of your new inventory in column 5. This is the inventory you have just taken. (Name this column left.) 6. Subtract column 5 from column 4, this will tell how much you used and put that number in column 6.(Name this column used.) 7. Put the price of each item in column 7. (Name this column price.) 8. Multiply what you used times the price in column 7 and this will give you your usage. (Name column 7 usage). Beginning inventory (This is the ending inventory from the previous week). + Purchases (for the week taken from your supply receipts) - Ending inventory (This is the Inventory you have left at the end of the week). = usage x Multiply times the cost of each unit of measure = Current week's food cost. Recipe Method: This method is based on determining the total cost of food for each standardized recipe. The cost of each ingredient is added together and divided by the number of servings. Recipes must be used exactly as written (ingredients measured and correct portion sizes). Most facilities need computer software to assist in this method