Setting a Budget: Expenses You Can Expect Before the Grand Opening
Opening a food service business is a big expense and it is important that you prepare for it well. Prior to acquiring funding and embarking on the process of purchasing the equipment you will need, you must create a budget. This will ensure that you do not overspend as you purchase those necessary items and it will give you a guideline as to what type of funding you will need. There are several things that you will have to pay for long before the day your establishment opens its doors for the first time.
The location will be a large part of your budget. Whether you are acquiring a building or buidling a new structure, it will cost you. Whether you are purchasing or renting an established building and making any renovations, it must be added to your budget.
If you purchase an established restaurant then you may be fortunate enough to find one that includes much of the equipment that you will need. This could save you quite a bit of money. However, you want to make sure the equipment meets all health codes and law requirements. You will also need to purchase anything that was not included.
You will want the establishment to have the look and feel that you have created in your mind. This means purchasing those items that will create that atmosphere. You may decide to invest in new tables and chairs or you may just update the ones that are already in the building. You will also want décor in the main areas that is appealing. Another often forgotten thing is to make sure that you budget for the small things like condiments, plates, cups, napkins and silverware. All of this is important to the atmosphere you create.
Another thing you need to plan for is the cost of any licenses or permits that you will require. You will be required to pay for the inspections that are required for you to open. This is an expense that is not expendable, so it should be planned into the budget from the beginning. Along with this you may need contractors to repair damage or upgrade your establishment to meet the codes. These contractors also cost money. It is always advisable to set back some funds for situations such as this.
It isn’t possible to open a food service business without food and beverages. As you establish yourself with vendors you will have to pay for the items that you order. It is important that you have plenty of food and beverages to sustain your business until time for another order. For this reason you will want to budget plenty of money. You will also find other things throughout the business that you will need to spend money on. You will have to have computers for business records and signs for outside your business. Advertising for the opening will cost you money. It is also imperative that you pay the staff for their time working even before the business opens to the public.