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.