Question

Business Planning ( I would like to open restaurants)

1. What kind of business would you start? Explain in one or two sentences.

2. How would your business make money?

3. What business expenses would you have?

Answer 1

1. I would like to Open restaurants which provides tasty and healthy food with different varieties of new recipes.

2.Restaurants make profits, like any small company, by charging more than they pay.In contrast to a retailer or a hair salon, the challenge for eateries is that food expires— some of it very soon. As a restaurant owner, this means formulating a menu where all costs and waste are managed.To make it very clear, to cover your expenses and generate a surplus, you need the markup on anything you sell. Let 's assume that only cheeseburgers, chips, and soda are sold at your eatery for $10. In order to deliver it to the consumer, maybe the meal costs you $2 in food costs and another $1 in variable costs. That means you've got $3 worth of expenses and $7 left over. When the expenses are offset by the revenue that comes in, so you are successful. It is tougher to operate a profitable restaurant than it seems.It is often not necessary to provide decent food— even a busy restaurant can be sunk by high rents or competition restricting what you can charge. In calculating whether your dream restaurant has a chance to make money, take a practical approach. Can you actually sell enough to make a profit at the right price? You have to make adjustments if you crunch the numbers and discover out you can't, then. Selling things that cost less, opening for more (or less) hours, modifying the menu, or choosing a new place might mean that.

3. Restaurants have both fixed and variable costs, as with all kinds of firms.

• Rent / property costs: You can pay a fixed amount of rent per month in most cases.You would also have bills like taxes and insurance if you buy the house
• Insurance: If a consumer is sick, you will need company insurance to protect anything from future property harm to liabilities.
• Salaries: These are fixed expenses if you have any salaried jobs (whereas hourly staff are an adjustable cost).
• Hourly pay: This concerns someone who is paying only if they work.Hourly employees are an expense that you can change according to company requirements, as opposed to salaried workers.
• Food: Since you do not go to the grocery store when each customer orders, before you open each day, you would need to purchase some food and ingredients.
• Utilities: Power, heating, and occasionally even a constant number will certainly not be your phone bill.
• Advertising: If you are in a high-traffic city, there are chances that you would have to pay some money to let people know that your eatery exists.

As a restaurant owner, maybe the most valuable thing you can do is to consider and control your expenses.Only having it set up, you will incur lots of expenditures, so it is important to get an idea of the expenditures you will have to cover on an ongoing basis.You should have a solid understanding of how much business you intend to do to make a consistent profit before you even start up.