Week 10 EOC: Not Failing

Week 10 EOC: Not Failing

It is common knowledge that new restaurants have a high probability of failing. In fact, it is said that 90% of restaurants fail in the first year. Research has found that this is typically because there are common mistakes that are made. For starters, you must have a strong management team in order to be able to lead the pack. The success of your business depends on your ability to be a strong leader as well as having other strong team players on your team.

“The management team is often the deciding factor for a potential investor’s decision to financially support a business. Moreover, with all other factors being equal, a strong management team will be successful in a business and a weak one will fail.” Pg. 49

A good management team helps define the mission and the overall operation of your business. Another key benefit of having a strong management team is that you will have the right people in place. Hiring the appropriate staff is vital to the operation. You must ensure that ongoing training takes place and that the team has incentives to keep them motivated.

                Location is golden. You must pay meticulous attention to the demographic which you are entering. You need to be aware of the parking situation and whether you offer on site or street parking as this may many times deter patrons from coming to your business.

“Regarding place, the type of business you are running will influence your choice of location and your distribution system for reaching out from that place to your customers. For a retail business, site location is the key to attracting customers. Ideally, you will want your store or business to be where your target market is.” Pg. 165

 If there is a garage instead of on street parking, you have to make sure that the parking garage is safe. Is it well lit? Is it easily accessible? Does it have a ramp for those with disabilities to get around? Are the elevators in working order, if they have any? There are many points to evaluate before you settle for a location. You must be aware of the surrounding competition. It is important to scope out their menu selections as well as search for multiple vendors. The reason this is an important thing to look into is because you have to know who else the purveyor is serving and the deals you can get based on other relationships. You must keep in mind that all this can be competition for your business.

                As an entrepreneur you must remember why you started this venture. You must remain focused even through the moments of frustration and uncertainty. Your attention to detail is vital to the success of this operation. Your passion can only carry you so far. You must know the market you are entering. Anticipate the hardships but also savor the victories.

“Even if you have a clear vision that you believe will motivate you through the ups and downs of running a business, look closely at the costs and benefits of being an entrepreneur before you decide whether this is the life for you.” Pg. 8 

Above all, remember that balance is key. Do not become so consumed by this that you neglect your life outside of this project. Take time to revitalize and reenergize with close friends and family. Leave your personal life at home and the same goes for work. Remember that you still have a personal life outside of the dream you are building. Be skillful, intentional and deliberate with your time and purpose.