The restaurant industry is a whirlwind of creativity, delicious food, and passionate team members. However, the financial side can feel like a terrifying rollercoaster ride. Fear not! You can transform your financial blues into financial freedom and ensure your culinary dream thrives.
Part 1 Budgeting: Your Roadmap to Success
Do you feel like you keep getting new gray hairs from the expenses showing up at your business? Do you lie awake at night wondering how you’ll make payroll?
The money side of your business can be smoother. A well-defined budget is the foundation of any successful restaurant. Think of it as your roadmap, guiding your financial journey and keeping you on track.
Here's how to build a solid budget:
financial records, if available, or decide now where you will store this information moving forward. I know looking at numbers can feel really scary and overwhelming for many people. Try to identify the thoughts causing those emotions. I like to tell myself, “it’s just data.The more information I have, the better decisions I will make.”
Compare: Research industry benchmarks for key areas like rent, utilities, food suppliers, and staff wages. Every 6 months to a year, make a point to reevaluate and renegotiate.
Categorize Expenses: Separate your fixed costs (rent, insurance) from your variable costs (food, utilities) for clearer planning. This allows you to track fluctuations and adjust spending accordingly.
Embrace Realism: Factor in spoilage, waste, and unexpected expenses to create a realistic picture of your financial landscape. Anticipate slow periods. Set aside money for maintenance and replacing equipment. Don’t let these items surprise you.
Plan for Cost Increases: When you are looking at an annual budget or farther out, leave room in your budget for potential increases in costs. Supply prices can fluctuate.
Revenue: With your current marketing plan, what are your sales projections? Consider seasonality, local trends, and competitors when setting your targets.
With a solid budget in place, you will experience less surprises and feel more prepared and confident. Let me know how this is going for you!
Lots of love,
Mary
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