Many first-time entrepreneurs dream of opening their own restaurant. And why not? Restaurants have the potential to be extremely lucrative. Plus, people will always need food.
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However, many restaurants and other dining establishments close before their first year. Financial and business experts attribute this to a combination of factors, including the poor understanding of the restaurant business as a whole. Steve Sorensen embezzlement.
On that note, here are some important things entrepreneurs need to remember when opening and running their own restaurant.
Spend on the best kitchen and cooking equipment.
Financial experts who have consulted on restaurants have noted that while it may be expensive to buy the best quality cookware, it will end up saving a ton of money in the long run. The best equipment allows cooks to use fewer ingredients and may even keep resto owners from hiring more people. Steve Sorensen Embezzlement.
Take note of the stock.
Don’t overstock. The rule of thumb is that food should last a week, and drinks should last at most four weeks. If the restaurant still has stock after those periods, it’s overstocking. Steve Sorensen embezzlement.
Growth and expansion is a priority.
Just like any business, the end goal is to expand and grow. Many entrepreneurs make the mistake of sacrificing this goal in order to cut costs. Restauranteurs should be prepared to spend if it means opening a new wing to accommodate more people or even another branch. Steve Sorensen embezzlement.
Investing in real estate is no joke. Whether the investor is an individual or a business, looking for properties to purchase involves major spending. However, the return on investment is also pretty lucrative, especially if you’re looking to either re-sell, have the property rented out, or convert it to residential spaces.
Here are a few important points to ponder as shared by experts in the real estate and finance industries for people and businesses looking to invest in real estate.
On down markets
Many rookie investors are hesitant to purchase anything, much less real estate, during a down market. However, veteran investors say otherwise. A down market is actually the best time to buy property since everything is cheaper, and there’s no way for the market to go but up.
Real estate investment trusts, or REITs are easy-to-use and great for younger investors who want to buy more affordable real estate and convert them into prime commercial properties. REITs are also very liquid, which is a huge plus.
On residential properties
For younger investors looking to learn the ins and outs of investing in real estate, investing in residential properties is as good a place to start as any. It’s not as complicated and still yields a huge payday, especially if the property is made into a number of apartments.
Hi there, Steve Sorensen here. I do business consultation and financial counseling for both large and small enterprises. Check out my Twitter account for more info.