One Door Closes(how much capitol)

[JAG]

Hello all, been around a while but currently just doing a pretty successful part time mobile wood fired while also working a full time job so never have had anything to contribute, anyway it looks as though my full time job may evaporate and since I am to old and bull headed to work corporate again I am considering opening a sit down “restaurant” style joint. I have just started to scratch the surface of sba.gov and finding some interesting reading but my biggest question right now is how much capitol to open? Is there a formula, or ratio, or guideline as to amount of capitol to open a place with regards to annual sales?
I am sure from here on out I will have questions regarding the financial side/ ins and outs. Please be patient as some of my questions may be obvious to some but eluding to me. Thanks in advance.

John

 

[daniel_bothman]

never simple question as there are infinite variables that no one here can answer to reflect your specific situation. things to think about… owning or leasing space. is it already built out as a restaurant. size.landlord participation in buildout. free or reduced rent during startup. equipment needs. new or used. staff training costs. building delays. unforseen regulatory hurdles. starting inventory. buffers for cost overruns. buffers for overhead till profitability. the money suck will be endless in the gestation period and money in will great in infancy and then less than you planned in the teens. but it all pays off when everything hits its stride in a few years. it will always take twice as long and cost twice as much as you anticipate.

 

[George_Mills]

Good advice above. to get a handle on what the equipment cost we can do a floor plan give you equipment list and equipment cost.

We have planed and equipped thousands of food service facilities nationwide.
George Mills

 

[JAG]

Thank you Daniel and George, a very intimidating and daunting task ahead, but I know I want to do it right and not be some hack operation not to mention keep my residence from being an old van down by the river so I am sure I will be throwing out questions here and there. George, see your not to far from central Ohio, when the time comes I would love to use your services.