If you’re starting a restaurant in Canada, you should be proud of yourself. Leaving the 9-to-5 to begin an unknown venture isn’t easy. It has the potential of incredible rewards if you’re willing to put in the time, dedication, and money required to be successful.
At the end of the day, a restaurant is a business, and requires virtually the same steps as other businesses to open up, but before we begin to be sure to research the rules and vendors in your country to make sure you’re on the right track.
Here are five tips to help you start your restaurant.
Tip 1: Write a Restaurant Business Plan
All the most successful businesses start with a detailed business plan. This plan will overview your business, designate your form of cash flow, keep track of finances, mark your profit potential, outline labor needs, and more in the name of running a successful restaurant business.
Research good restaurant business plans online to get you started. You can find great templates on sites such as BPlans to give you some ideas. You can easily adapt these templates for the restaurant business.
Tip 2: Choose a Form of Business Ownership for your Restaurant
Canada has four basic types of business ownership. Select the one that best represents your business and interests. Here are the four you have to choose from:
A sole proprietorship is an unincorporated business owned by one individual.
A partnership is a business established by two or more owners.
A corporation is a business structure that separates the legal entity from the owners.
A cooperative is a legally incorporated business owned by an association.
The type of business you choose will protect your personal name, finances, and credit from being affected by your business.
As a business owner, you always want to protect your personal assets from the business assets, even if you just own a restaurant.
Tip 3: Source Your Vendors
You’ll need vendors who can source your business with all the products and restaurant supplies you could ever want. Carefully research your options for your specific restaurant type to make sure you get the best products possible.
In Canada, there’s a number of quality brands and restaurant suppliers to stock your restaurant. For example, consider VEGA Direct for your restaurant and hospitality needs. They have a reputation for quality products and great customer service, whether you are looking purchase dinnerware, flatware, glassware, or more.
Tip 4: Find Financing
You’ll need funding from start to finish with your business. Incorporation, office space, supplies and vendor fees are just a few of your expenses.
Most small Canadian restaurant businesses are funded from a variety of sources, including the owner’s personal savings, small business loans, personal loans, lines of credit, and more.
Besides restaurants, some businesses in Canada are also funded by grants, which you don’t have to pay back. It’s the government’s way of helping the economy and allowing small business owners to get a start, despite financial difficulties. You can learn a lot about the kinds of grants available in this article from The Balance SMB.
Tip 5: Select and Register a Great Business Name
The name you choose for your business will define it forever, so make sure you choose a good one. A stellar business name will be a reflection of what your business does. This is especially important for new restaurant businesses because people want to know what they’re getting into before entering your establishment.
For example, if you’re starting a restaurant, and you want to name it after yourself, you could choose the name Thompson’s Fine Eatery or Thompson’s Cafe, or even Thompson’s Bistro. This combination allows a little creativity in your name while cluing in your visitors on the type of food and experience they can expect.
Canada is a great place to start a new business as long as you know how to work within the system. Use these 5 tips and carefully research the process to create a strong restaurant that will endure.