Well, don’t let your emotions cloud good business judgment. I really do enjoy this time of year, as there are many exciting forums, tradeshows and events on that showcase this amazing industry I am so passionate about.
I have been fortunate, in the last couple of weeks, to attend and moderate several Forums where debate and discussion has been at a pace over investing in F&B operations in this part of the world and there have been some key take-aways that I would like to share with you when approaching this as a potential business opportunity.
Leave emotion at the door. Many many people I have spoken to over recent months, decide to get into this business based on emotion. There have been countless situations whereby investors want to get into this industry because they have experienced an outlet or concept in another country and loved it. They just had to have it here! Much as I completely understand this passionate approach, before looking at investing, make sure the fundamentals are solid.
Understand the partnerships expectations. Whether you are looking to partake in a franchised operation, stand alone brand, or create one yourself, understand what the expectations are from the Brand owner, Landlord, Franchisor, etc .. and be sure that they align with your own.
Before you look at ROI…look at breakeven. This is kind of critical, as often occurs potential restaurateurs get caught up in the excitement of opening their restaurant and how quickly it will (hopefully) pay its self back. But before that high kicks in, first look at how much it will cost each month to run, because without that then we don’t know what our break-even looks like. And the numbers might surprise you…
Your Human resources are you most valuable assets. I had several discussions recently with like minded individuals regarding the pro’s and con’s of Human resource consultants. We look to engage these people to select and present for hire the custodians of our hard earned investment and the pride and joy of operations for our long term successful existence. It is important to make sure that experienced operators within the industry interview your key players in your operation. I was listening intently to Murad Alnasur , the General Manager & Director of Business development for International Leisure Investment’ at the recent Food Franchising Forum who stated ‘Even though you need to know their relationship status and the reasons why the left their last job, isn’t it more important to know that they can actually do exactly what you want them to do for your business?’
Ultimately those of us with a passion to succeed in this business…will! However for those looking to enter into this ever expanding growth industry ,within the region, remember it is a wise investor who knows all the risks before entering into an investment and if you are not sure….there are a few of us around here who can help navigate the path.