Question

In no less than 200 words, discuss:  

"the right way to prepare your budget" for the restaurant business you are stating up.

There are some straightforward guidelines on building a realistic budget - Budget objective, term, assumptions, key questions, demand for resources, etc.In this forum discuss how you plan to use these guidelines in building your cash budget. Keep in mind that your decisions on your business model should be reflected in the key activities that must be funded in the budget

Answer 1

Answer 1) Well whenever starting any kind of business the most important thing is to decide regarding the budget in which the amount that is to be invested in the business is to be decided. For a restaurant business there are many factors which can affect the planning of a budget, so let’s discuss some of them:

1) First thing that should be taken care of is Location of the restaurant if the target location is prime location than the budget will be higher as the price of land in prime location will be costly

2) Budget also depends on the layout of the restaurant that how the location will look from inside how many customers will be dealt at one time, what about interiors and design etc

3) Budget of restaurant will depend upon the kind of advertisement or promotion the restaurant will do once it starts operating because without advertisement customers will not be aware about restaurant.

4) Budget also depends upon the amount that needs to be spend for building of restaurant that is the labour cost, manufacturing cost etc

5) Budget also depends upon amount that needs to be spend on documentation and paper work required for starting of restaurant.

6) Budget also depends upon the amount that needs to be spent on Fixed Cost that is equipments, plates, bowls, air conditioner, dishwashing, table chairs etc

7) Budget also depends upon the amount that needs to be spent of Variable cost like employees salary, electricity bill, cost of raw materials etc