Startup for Student: Disadvantages and Advantages
For students, opening a restaurant includes finding potential co-owners with the same attitude to the project, and the same financial and time-related abilities. The next step is a detailed discussion of the idea of the project, evaluation of costs and the break-even point. Though co-founders can equally invest enough for the establishment to work, promotion may demand extra money. For example, if the required sum is $700,000, the search of sponsors is a must.
To acquire the investments there is a strategy that consists of a clear presentation of the restaurant to a sponsor. This involves the depiction of a concept, arguments for its potential demand, the analysis of the market, and the exact financial distribution with the percentage of the investor’s share market. On the one hand, the completed presentation can be shown at banks or to some independent patrons. On the other hand, such business plan competitions as ‘‘iStart’’ or to such venture funds as ‘‘Dorm Room Fund’’ are considered to be safer.
Another aspect of security is the management of a restaurant, that is especially vital when none of its owners is present. The solution of this problem includes the thorough staff recruitment with an emphasis on the leading positions, such as the operator. This employee will be responsible for the most of the actions taken to develop the establishment. Apart from the representation of the restaurant, the operator is responsible for the quality control, promotion of the concept, the design of the menu, financial accounting, and hiring of staff.
Every start-up needs its co-owners to figure out the list of their liabilities that should be notarized. First, fiscal accountabilities of affiliates are required to be committed to paper with initial shares recorded and the obligations discussed. Second, the non-disclosure agreement should be signed for the concepts and recipes of the establishment not to be used by other restaurants. Third, the potential loss should be calculated with the solution of the problem prepared.
Establishment of a restaurant is a heavy responsibility that requires reliable co-owners, financial analytics, a strategy of development, reputable investors, proper management, and notarized liabilities. Such start-up needs a detailed plan for its realization, the computation of risks, and the knowledge of the market. Meanwhile, catering projects demand much time for the cost recovery, and the involved people must stay patient.