Difficulty: Moderately Challenging
Step1
Decide whether you want to purchase property on the location or lease the space. Many first time restaurant owners opt for leasing space. Hire a lawyer familiar with the restaurant industry to review your lease terms.
Step2
Attempt to incorporate the landlord into the business as an investor or by negotiating rent abatement terms to reduce initial costs. Also, consider negotiating a net lease, where you pay only rent without paying taxes or maintenance, rather than a triple net lease, where you pay rent and all of the additional costs associated with the property.
Step3
Hire a commercial real estate agent familiar with your industry if you choose to purchase the restaurant location. The agent can help you evaluate a purchase prior to buying it in terms of the existing businesses assets, books and how much modification you would need to perform.
Step4
Acquire a loan from the Small Business Administration to help with the purchase of your location. Also, talk to your local chamber of commerce for additional suggestions. Research the prior tenants by talking to neighboring businesses.
Step5
Research the neighborhood where our restaurant may be located. Use the census data to create a demographic profile of the potential customers and area. Speak to the police department about area crime and find what, if any, construction plans the highway department has for the area and determine how it may affect your business.
Step6
Take traffic counts, to see how many potential customers pass the location, prior to deciding where to locate. Take traffic counts on various days at various times and decide who to count before doing the count.
