Before you open up your first eatery, you need to know some very important things, and the number one thing in any business is MONEY!!!! I don't care if you are a fantastic cook, you got a buffalo wings recipe that rocks. If you don't know the business of making money, forget it! You'll probably get screwed by your accountant, if you can't read a basic financial statement, or answer financial questions when you need to speak to a bank or investor, forget it! MONEY, it's the language you need to master. Here's a tip, and it covers some basics.
1. Learn to manage an eatery first. (If you haven't yet)
One reason is that with experience, you'll be more savvy when running your own kitchen, you'll understand what business is all about. You need to know what your top line is, and all that other lines in between the top to the bottom line. If your bottom line is in the red ink, it's time to re-think what's going on, because anytime a business is in the negative, you're losing money... And you are not in the business of losing money, you need to break even and then some.
Okay no other number, just 1, we'll add on to this MONEY thang! If you are talented in the kitchen, you're a great cook, yay! Now it's time to study business, maybe take a class your local college sets up every year, or hang out with a friend that owns a business, it doesn't have to be an eatery, any business, and pick his brain. What is he doing after he closes, who is he calling? What are those numbers he's putting into his computer? Does he have a book keeper? An attorney? All these things may be confusing, but it's one thing to cook great food for your family and friends, it's another thing to be a professional. And you need to learn at the minimum on how business is run in your city or town.
Taxes, what's your sales tax? Don't know? You better. When paying your business taxes are you going to do that quarterly, semi-annually, annually? Don't know? Get an accountant that's reputable.
Laws, do you know what the laws are for you business? Do you know that business is all about written contracts? Let's say you want to do a catering gig, how are you going to protect your business and your clients? You'll need an attorney for that, cover your behind as they say. Law suits, if you so happen to serve a bad piece of apple pie that was contaminated by your negligence, maybe you sprayed some insecticide forgetting the apple pies weren't covered, and your client eats it and then dies, then what? That leads me to what kind of business set up are you going for? Sole proprietorship? Partnership? LLC? S Corp? Find out the perks of each.
Keep in mind, the most successful business people are still in business because they know business! They understand that the economic climate changes for the better and for the worse, these people are prepared. Check that word...PREPARED. So before you get involved with your own eatery, before you sign any leases, for crying out loud, get some business knowledge, and talk to veterans in business, because you'll hear success stories which is Yay Yay. And you'll hear horror stories that are real, business is a dirty business where only the tough survive. If you want it cozy? Stick with your 9-5 gig. If you will become your own business person, you are in it 24/7/365!
Until next time
© 2015
No comments:
Post a Comment