Many dream of owning and running their restaurant in Toronto, and why not – the city is world renowned for its vibrant and diverse restaurant scene. This town offers plenty of opportunities for restaurant entrepreneurs ready to put in the work, but there’s also a lot of competition out there. Preparation is key, even before you start your restaurant search. Here are the top 3 things to have in place before you begin the search for your dream restaurant.
1. Have A Business Plan
In brief, a business plan will be a document setting out your restaurant’s objectives and how you plan to achieve them. It should contain all the relevant information for your new venture; who you are, your space in the market, your strengths, how you will operate, competitor analysis, marketing plan, financial predictions etc. The business plan document should form a road map for your restaurant’s journey; from its very beginnings to the milestones you expect to reach, plotting a course that navigates straight through to eventual success.
Having a business plan will not only act as a continual point of reference for you, but the information you have prepared can also be shared with third parties. Your business plan will help demonstrate your serious commitment to the endeavour and will be a key piece of material when it comes time to secure lending from financial institutions or interest investors. Your business plan isn’t set in stone either; it can be updated and developed over time as you gain more knowledge of the current state of the industry and what’s happening on the commercial real estate scene. As you evolve and grow so should the business plan.
If getting started on a business plan sounds daunting, there are plenty of resources that can help you. There are many elements you should consider putting into your restaurant business plan so take some time to research this beforehand. Remember, the time and effort that you put in now is only going to help you in the future.
2. Get Your Finances In Place
Getting your finances in place before you start searching for the restaurant of your dreams makes it much easier to secure the right place when you find it. If you don’t already have enough capital set aside for your business venture, then you’re going to have to obtain restaurant financing. There are many avenues to explore for financing; bank loans, small business loans, commercial real estate loans and lines of credit.
You’ll want to do your research and consider factors such as how quickly you could access your capital, the finance term and total payback, interest rates charged and whether the financing needs to be guaranteed. There are plenty of resources online that will help you understand the various restaurant financing options available to you.
Keep in mind that it can take time to secure any kind of third party financing – so don’t leave it to the last minute. The sooner you start your search, the better. Having past and current financial statements ready for applications will be essential. Having these in order, along with a business plan, means you’re getting one step closer to owning your own restaurant.
3. Hire The Best People
So, you’ve taken time to create a great business plan and now have your restaurant financing in place. The time has come to get the right team of professionals on your side. To make sure that you secure your new restaurant you’ll need a realtor, a lawyer and an accountant. Not to mention a mortgage broker and bookkeeper. These will all work closely with you to navigate the commercial real estate market and help you keep on top of the myriad of things that need to be done.
You’ve come this far with your preparations, so naturally you’ll want to choose the best professionals to work with. This is where a good realtor comes in. Someone who knows the restaurant industry as well as commercial real estate is going to understand all the unique needs you’ll have and can recommend the best professionals for your team.
Once you have your team in place they’ll help you with all the necessary procedures and paperwork that go into purchasing and opening a restaurant.
CHI is dedicated to keeping up with local and national trends in the Restaurant Industry to help serve our customers better and keep them one step ahead. If you are interested in opening, purchasing, or selling a restaurant CHI Real Estate can help. Get in touch with our team today.