Financially speaking, what would you do?

Tips and Deals Forums Debt Management Debt Management Financially speaking, what would you do?

Viewing 0 reply threads
  • Author
    • #380844

      I’ve found an ex restaurant located in a busy part of the city in a shopping complex surrounded by a Wal-Mart, a hair studio, a paint store, another restaurant(They serve American food.. I’m serving Italian.), a busy laundromat, a bakery, a karate studio, banks and more. The place is fully furnished and includes everything besides a conveyor oven(I’m buying a tri-level from a friend of mine) and a dough mixer(I’m buying a 40qt. from him as well).

      I have $ 24,500 to invest on opening the place up for a gas & utilities deposit, a security deposit & first months rent, food & beverage purchasing, deposit for garbage services, a sign, food supplies(pizza pans, boxes, forks, plates, etc..), costs forming an LLC, a health and fire inspection(including a balloon test on my oven hood), money for my tax attorney starting out, and everything else.

      I own a local cleaning company and make only about $ 450 a week working 2 days a week. I plan on keeping my clients even after my restaurant is up in case I need the money. I don’t have any debt at all. My only bills are rent which is cheap, cell phone, tv, internet and food. $ 24,500 is what I’ve saved over the last 3 years and I’m wanting to go further with my life and open a restaurant with the assistance of my dad. He managed a restaurant for a guy(the guy selling the oven and mixer to me) but had to quite because the guy closed the place from having too many restaurants on his back being an individual. My dad is now a painter and if I open the restaurant, my dad will be my manager and will run my dining room during rush part of each day.

      I’ve added up all expenses that are required to open the place and I’ve estimated it to be in between $ 16,000-$ 18,000 just to open, and my monthly expenses that include employee compensation will be in between $ 12,000-$ 14,000(I hope I’m over-projecting.).

      So, if it takes $ 18,000 to open that leaves $ 6,500 left over. My main concern is making enough money to pay bills. I have a “what if” in the back of my mind. Since my bills will be approx. $ 12K each month, since I only have $ 6,500 left over, what if I can’t even afford my bills in the first month? I know the first month will be incredibly stressful and rough, but I believe after all the businesses in the area find out my dad is back in a restaurant, business for me will be as good as it once was when my dad worked for the other guy. My dad established his name with EVERYONE that went in there, and every time my dad sees an old friend they always ask where his restaurant is, and if he isn’t in one he needs to open.

      So what would you do if you had to rely off the first months pay to pay bills after the first month alone? I don’t wanna have to close and ruin my credit and be out of a lot of money.. money I’ve saved for 3 years.

      I know I can easily bring in $ 1,000-$ 1,200 each day, but the first month WILL be rough due to my place being new.

      Thanks for reading.

Viewing 0 reply threads
  • You must be logged in to reply to this topic.
Register New Account
Reset Password