If you're currently a restaurant owner or you're thinking about opening a restaurant then do this one simple thing to make sure you give your restaurant(s) the best chance at success!
Opening a restaurant is easy but keeping it open is extremely hard!!! The fact of the matter is that some people SHOULD NOT open a restaurant. (PERIOD)
Unlike a retail store where you buy an inventory item for cheap, mark it up and resell it, the restaurant industry requires that you buy dozens of individual pieces, break the pieces down into various units and then place those pieces back together with other pieces in hopes of creating a single product that people will enjoy better than your competitors.
Yep, owning a restaurant is about more than just cooking, its a business, and the moment you forget that your restaurant is a business is the moment that you're doomed!
Some restaurateurs like to go it alone. They'll invest their own money, open the doors and run the restaurant as they see fit (mom's kitchen). If the restaurant closes they'll potentially lose their investment but it typically affects no one but them (and their employees).
If you have a restaurant(s) or if you're thinking of opening a restaurant then your chances of success will increase if you get investors. No it's not about the money, its about the accountability.
Going after investors is a challenging task within itself and it forces entrepreneurs to think long and hard about their idea before they pitch it. Then once you've finally sealed the deal, you're still accountable which is something that doesn't exist without investors.
By acquiring investments from friends, family and professional investors you'll give your restaurant the BEST opportunity to grow like never before.
Benefits to acquiring investors for your restaurant include:
1. More support - Your investors will actually help you bring in new customers
2. Accountability - Having investors doesn't mean you lose control, it just means that you become accountable and accountability can be the defining factor between success and failure. Try telling friends and family that you lost their investment if you didn't give it a 100% effort. Thanksgiving dinner won't be so thankful!
3. Resources - Having investors will provide more access to capital and advisers. Having people in your circle who have restaurant experience and they're vested in your restaurant, can be a huge win! Having people to help you grow your concept financially is just as big!
Are their drawbacks to acquiring investors, of course! But in most cases, the drawback are far outweighed by the benefits.
Imagine having the option to work with 1 of 2 restaurants. Restaurant #1 is self owned and operated with no investors and restaurant #2 has a small team of investors to back it. Which restaurant choice do you believe has the greatest chance of success?
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