One of the main reasons for restaurant failure is lack of capital within six months to a year. The fact is, for most companies, revenue growth will be slower than expected, and therefore you have to keep capital in reserve to hold until established.
Set a budget schedule to buy only what you need as your business grows and look for used options for better value. The main expense has to do with settling in a suitable place. Costs can vary dramatically here depending on whether you rent, buy, or even build your own place from scratch. Then you will have to think about decorating costs and ongoing utility expenses.
If you are looking to lease space for your business, now is a good time to do so and you should be able to negotiate a good deal by taking advice from a reputed restaurant startup consultant.
Compliance costs can be surprisingly high, so it is important to do some preliminary research to find out how much it will cost to obtain the licenses and permits required by local authorities. You will also need multiple insurance policies, health and safety equipment, and may require the services of various professionals and consultants.
The list of equipment requirements for a restaurant is extensive and ranges from commercial kitchen and ventilation equipment, freezers, refrigerators, and other kitchen supplies.
Marketing costs can be considerable if you want to get started right away. Think about the branding, menu design, advertising options and signage for your building and what they will cost you.