"I LOVE TO COOK AND REALLY ENJOY GOOD FOOD,
MAYBE I SHOULD OWN A RESTAURANT"
by
Roy H. Bean
Business Consultant for the Ohio SBDC at YSU

Business consultants at the Ohio Small Business Development Centers meet with clients who have a variety of dreams, aspirations, and interests to become an entrepreneur. Certainly one of the more popular, if not the most frequently discussed type of business is the food service or restaurant. It is a business that people relate to and certainly are eager to discuss and critique.  People will evaluate any provider of food and refreshments this side of the Food Channel! Emeril is a great chef and owns several top rated restaurants. Does that mean anyone who is a great cook should consider owning a restaurant? Absolutely not!!

As a business consultant, the worst thing that I can do is set someone up to fail in a business venture. Having talent, such as being a good cook, certainly is a plus for a successful restaurant owner. However, talented entrepreneurs who admit they can't cook, own many famous and highly rated dining facilities. When we meet with clients we attempt to search for their strengths and weaknesses. We attempt to determine if they are approaching a business venture because of their personal interests and talent, as well as having the ability to successfully manage the business and be profitable. Many times clients have a strong personal interest in a particular kind of business, but not the business savvy that is required to be successful!

Entrepreneur is defined by Webster as a "person who organizes, operates, and assumes the risk for a business venture". Because you are a great cook does not make you an entrepreneur. You may become a great chef,  work for someone else and be highly compensated for your talent. Successful restaurant entrepreneurs have studied the market that they intend to operate within, the demand for the items listed on their menu, the exact cost of each item listed on the menu (including the labor, rent, utilities, etc.), as well as the margin of profit that they can target and still be competitive. They know that because they purchased scallops from ABC Co. today because they had the best quality for the best price, it may be XYZ Co. next week because of the same high-level criteria but at a better price. I hate to say it, but too many owners of restaurants are "seat of the pants" operators and managers. They make decisions without much rhyme or reason. If they are lucky, they pay their bills and have a profit leftover.

These principles that have been applied to the food service or restaurant business, also flow over into the most other kinds of businesses. The potential owner of a business, has to be a person with vision, and one who has the driving forces to complete all the tasks of developing a business. Once completed within the organizational process, he or she must have the ability to acquire the necessary capital to properly fund  the business venture. When this has been achieved, the challenge continues to put all the ingredients together in order for the business to be marketed and operate successfully and profitably. The "driving force" characteristic of the entrepreneur will motivate the business for long-range success, and give him the ability to meet change with a solution.

As business consultants, our success is measured through the assistance we provide to help you become  successful. Call us today if you would like to discuss a business venture. .

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A BUSINESS PLAN?

©2008 The Ohio SBDC at Youngstown State University
The Ohio SBDC at Youngstown State University
One University Plaza  •  Youngstown, OH  44555
275 Fifth Avenue • Youngstown, OH  44502
Office: 330.941.2140  •  Fax:330.941.2144