When people heard of Mr. Money’s new position and pay cut, many have asked why we don’t go ahead and just open a restaurant. While this sounds like a great idea, I’ve been doing a little research to see what it entails. I learned a lot while being working, and one of the things that I remember most is from the importance of business loans. The two riskiest businesses to a bank are restaurants and car dealerships. Many people think it’s easy to open a restaurant or car dealership, but it’s so dependent on customers and the economy that many fail.
Here are some of the costs we would incur if we decided to open our own restaurant.
-Capital. I’m guessing we would need at least $100,000 to just be able to start the business. We definitely don’t have that in savings or resources. We could try to find an investor, but then we’re working for someone else and we’d have to worry if we were using their money wisely.
-Rent. We would have to lease a retail space since we don’t have the funds to purchase it. I’m sure this would cost at least $1,500 a month, if not more depending on location. We’d have to pick a location that would be supportive of a new restaurant and the rent in a nice location would be a lot more than one in a not-so-desirable location.
-Equipment. Not only might we have to purchase kitchen equipment like stoves, ovens, mixers, cutting boards, knives, etc, we would also have to purchase tables, silverware, etc. I can’t imagine how much this would cost! I’m sure we could source some used items but that would take more time and who knows what the market is like for used kitchen items.
-Business insurance. We’ve looked into Business Insurance from Hiscox because I can’t imagine operating a business without insurance. The prices vary for business insurance products by industry so the cost can vary quite a bit.
-Health insurance. We’d be back in the same boat we were when Mr. Money was working for an independent restaurant, and this is not something I would look forward to! I hated not having group insurance before. It was a huge source of stress and I’m sure it would be again.
-Food. We’d have to invest money into buying food to be able to prepare and sell before we could start making any money. I think this could be a huge source of expense that could lead us to wasting a ton of money if we didn’t hit the quantities right on the head!
All in all, opening your own restaurant sounds like a good idea, but on paper I can’t see how I could ever make it happen! It sounds like way too much stress for me, and I already worry about enough things. Right now we’re just glad that Mr. Money still has a job and we have health insurance. Things could be worse.
Have you thought of opening up your own business? What are some of the things holding you back?