Some business people may be reluctant to do restaurant business after hearing that many restaurants close even in the first years of opening. However, the restaurant business is actually a profitable business as long as the businessman is able to manage restaurant finances well.
Make a budget
The first thing a restaurant business must do is create a budget. This is done to prevent the expenditure of more costs than they should. The budget includes information about what fixed costs need to be paid, then daily operational costs, to how much funds they have and estimated earnings. Creating a budget allows restaurants to be free from confusion when managing and using money, and is helpful in determining priorities when it comes to spending.
Review the restaurant business every day
This can be useful later in analyzing how many customers come every day, what are the actual expenses in restaurants every day, and others. The results of the review can also be used in ensuring that funds for expenses that have been determined are actually used properly. In fact, restaurants can take advantage of these reviews when they want to evaluate restaurant finances.
Make cash flow statements regularly
Don’t miss the cash flow statement section because it is very important for the smooth running of the restaurant business. The report helps the restaurant business monitor what activities have an impact on the amount of funds in the business. Cash flow statements help restaurants ensure where funds are coming in and what funds are going out.
Avoid too much debt or too long bill payments
Occasionally buying raw materials with a payment tempo may still be considered reasonable, but always try to pay the bills on time.
The reason is not just because of professionalism, but withholding bill payments can make restaurant finances unhealthy. Keep buying raw materials even though the payment period that was not previously paid can lead to purchasing too many raw materials, and eventually the financial calculation becomes chaotic.
Buying staples for the restaurant business with the current payment tempo can be done easily. Culinary business owners are given the convenience of “buy first, pay later”. Of course, with the terms and conditions of payment agreed by both parties. .
Also try to always be disciplined in paying bills, including other debt bills. Especially if the lender installs interest that will rise within a certain period.
Prepare funds just in case
These tips apply especially to friends who want to start a restaurant business. Not only preparing funds to start a business, but also funds just in case if the restaurant turns out to have losses due to several factors, one of which is the small number of visitors so that revenue is not on target.
These funds can then be used to help restaurants keep running, even though income is temporarily insufficient to pay monthly fees. The monthly fees referred to include rent, employee salaries, purchase of raw materials, to pay electricity and water bills.