Let’s say you have an absolutely great concept for a restaurant and you even have a location picked out. You’ve done a lot of research on the competition and even put together a solid business plan that you’re ready to take to a lender.
But before you burst on the scene with your new restaurant, it might pay to consider some of the common challenges that face would-be restaurant owners.
According to an article by Danny Carberry on Food/TechConnect, a few of the stumbling blocks often include:
- Not understanding the competitive landscape
- Poor inventory management
- Customer service
- Lack of experience
- Location
By far, one of the biggest pitfalls is simply being undercapitalized. The cash flow needs are immense as opening day approaches and the debt piles up while funds are depleted.
New versus used equipment and furniture…
Carberry cautions startup owners to hold back on purchasing new equipment and furniture—even if you’re lucky to get a loan.
“Don’t go crazy buying new equipment and furniture, instead consider the benefits of used equipment. Be frugal with your opening loan–don’t treat it like you just won the lottery.”
As you make your plans to follow your restaurant dreams, think about buying the savings to your business when you use the services of a proven, south Florida restaurant equipment provider: Lauro Auctioneers.
The Lauro family is not a newcomer to the auction business. They have a sterling reputation for the way they handle the buying and selling of assets. They conduct live public auctions on site, or in their climate-controlled auction house; too, they are savvy about technology and the benefits of online auctions—including absentee and telephone bidding.
Visit our website, read the testimonials and then contact us for more information.
