How to Sustain Your Restaurant Business

How to Sustain Your Restaurant Business
How to Sustain Your Restaurant Business

It was not too long ago that we meet Jack a Restaurant owner. He has been running his business for 4 years and unable to sustain because he lacked the basis to. Most people around always eat at his restaurant and admired the way he does business.

Little did I know that Jack was in pain running his business. Our first visit to his restaurant as customers gave us the opportunity to speak to Jack and here is what we got from him.

Note: If you want your business to prosper, you have to learn how to sustain in the stormy waters of business and stay safe against these pitfalls.

“I am among the fortunate guys who secured a good capital to start my business,” he said.

However, I have never been in business before then and I thought all I needed was capital to start. I asked him if he acquired any knowledge in finance before starting this business?

He was stuck for a while and said “no I was interested in business and I just wanted to do it and make more money and grow bigger. Unfortunately, I kept putting in more money without seeing any return. I am now highly indebted, but people look at the way the business has grown and think I am doing well”.

I had a deep evaluation of his handicapped, financial records and discovered a major problem. ”If you can’t keep track of your business, it will be difficult for you to understand the current position of the business” I told Jack.

“Moreover, you are overriding due to the excitement of growing too fast” {he shook his head}. “You want to outsmart all competition, which makes you take on added overhead. You are also trying to prove to anxious investors that you’re growing and they can all spur you to overextend your business financially. This is a serious error, set realistic goals and expand only as needs dictate”.

From his financial records, he had no capital reserved to take care of an unexpected increase in things like utility, labour, material etc.

More importantly, he had a cash flow problem. Poor cash flow is one of the major causes of failure in small businesses. Just like blood is to a human being, so is cash to a business; not profit which is just a result.

How did I even get to know this place? If not because I find myself tight in that small corner of the town I wouldn’t have known there was a nice restaurant out there.

I look at him and asked why can’t you move your business to the central business unit (high streets)? He looked at me in bewilderment.“Is this place bad?” he asked.

I said oh! no but location is a very important aspect of your business. If you were located around the high streets, I think you would have greater exposure and make more money than being here.

I turned around and said, I have observed some poor customer service, I think that was due to lack of competence by your employees and that can quickly sink your business.The customer is King I uttered; try to put a premium on customer service because it is a critical success factor for a restaurant business.

Customer loyalty doesn’t just happen, you have to earn it. Continuously watch your competition and stay one step ahead of them. If you don’t take care of your customers, your competition will.

“In business, competition will bite you if you keep running. If you stand still, they will swallow you.” – Victor Kiam

I said,” time does change bro”. From 4 years ago when you started this business, a lot has changed and if you are not changing with those environmental factors(general and the business environment) you will face strategic drift. The ability to recognise opportunities and be flexible enough to adapt is crucial to surviving and thriving.

Learn how to wear multiple hats, respond nimbly, and develop new areas of expertise. “Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is the trend.” – Ajaero Tony Martins

If your business doesn’t sell, you should sell your business,I told Jack. Customers can’t do business with you if they don’t know you’re there.

Have you a Facebook page? I asked. Behold he said “I don’t need one for now”. No online presence for such an outstanding restaurant. But fortunately, I pulled out my tablet from my bag and showed him how his competitors are using Facebook and social media to acquire new customers.

It doesn’t cost a lot to advertise and promote your business through online marketing, social media, email, local search, and more I made it clear to Jack.

Why not learn from Jack’s story? Learn how to sustain your business as well. It’s easy to get going.

By William Asongwe

 

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