The first thing I would do to insure my restaurant did not fail within the first five years of operation is put it in the correct location. The location I choose would be the southwest corner of the valley, generally, west of I-15 and south of 215. Unlike Summerlin and Henderson, the market has not been oversaturated with restaurants, although the residential growth has been exponential. On Blue Diamond Road there are a couple privately owned bars and one franchise restaurant, although Southern Highlands, Coronado Ranch and Mountain’s Edge masterplanned communities continue to grow.
Next, I would make perform a SWOT analysis in order to increase my awareness about the competition, recognize any threats and weaknesses as well as my strengths and any special opportunities that exist. I believe that an opportunity exists on the horizon. Now that marijuana has been legalized, I believe an opportunity exists to have a marijuana themed restaurant or bakery.
Marketing must be the next area to focus on. How, and to whom, will I market my business?
Accounting and management are two problem areas. The owner of a new restaurant must be involved in both areas (at least at first) in order to not lose money to skimming, improper purchasing, or giving away too much product. Proper controls must be put in place and constantly monitored. Keeping vigilant watch over labor and food costs is pertinent to maintaining cash flow.
Finally, making sure we have enough capital to make it through that first rough year. Payments must be made immediately to cover fixed costs even while the cash flow is not yet up to par to cover the expenses. Keeping in mind cash flow doesn’t begin until the restaurant opens doing all you can to keep labor costs low as long as possible is important. And, again, making sure that variable costs do not rise above the level that they should is key.