[OmegaSupreme]

just looking for some advice, tips useful resources, experts i can talk to, etc...

i get the part where I have to form an entity (eg LLC with a fictitious name) and get a state business license, but there's just too many other things i don't know about

eg for a NNN lease, say of $1500 rent/m, approx how much would the other monthly expenses be (e.g. real estate taxes, insurance, repairs, utilities, etc)?

what are the upfront costs when it comes to leases, especially if i haven't established any creditworthiness as a business?

i'm thinking a small cafe/food place and if that does well expand to a foodtruck, or are foodtrucks more lucrative to begin with?

[cb at sea]

You do NOT have enough of a handle on business to do this...do more research! Food business is the RISKIEST thing you can do!

[ScoopLV]

^ This.

I've been in this business for awhile, and the start-up costs are staggering. Even if you know where to buy equipment on the cheap, the fire suppression system will set you back a TON, and you're going to install it and the landlord gets to keep it when you're done. And then there's all the exhaust equipment.

A cheap diner is at least $150K to start up from scratch -- inspections, fire control, NSF-rated equipment, health licenses, buying approved chemicals and sanitizers and such. There are a million little things and they all add up. Even a food truck is several thousand. And then you get the joy of cooking in Las Vegas in the summer in a metal box. Have fun with that.

[winter-rabbit]

If you really want to do it, buy or lease a place that has been in operation with the equipment in place.

[ScoopLV]

Originally Posted by winter-rabbit

If you really want to do it, buy or lease a place that has been in operation with the equipment in place.

Everything has to be brought up to TODAY'S code. That's often more expensive than doing it from scratch. Ask SLS about that if you don't believe me.

[EA]

Originally Posted by ScoopLV

Everything has to be brought up to TODAY'S code. That's often more expensive than doing it from scratch. Ask SLS about that if you don't believe me.

Double the cost, basically. You have to pay to have the old stuff taken out, then to have the new stuff put in.

[ScoopLV]

Sometimes you can get away with the previous exhaust equipment. But the fire marshal is usually going to want a brand spanking new Ansul system. No matter what, it costs a whole heap in Nevada. We're pretty strict about restaurant code due to the MGM fire.

[vtvette]

All the above is fantastic advice and likely not what you were looking to hear.

I was a partner in a bar when I was young. Bar/Restaurant is a very, very tough racket. There are a million scams everyone is looking to *********.

There are two defining traits I've seen in people who are successful in staring their own small business:

1) Extensive knowledge of the trade, usually from the trenches up and

2) People who understand that once you start a business you are no longer a waiter, a cook, a plumber, a mechanic, etc you are now a business owner. It's a whole different set of skills necessary to run a business vs. apply a trade. I've seen many, many very good mechanics who ask themselves "I'm the best mechanic in the shop - why and I working for someone else who is charging $xxx.xx/hr for my time and is only paying me $xx.xx for my time. Why don't I go out on my own, start a business, and make $xxx.xx for myself". The problem is when you start your own business you are now a business owner, not a tradesman (whatever that trade may be). Be sure that is in fitting with your personality, skill set and experience. Also, see #1.

I had a very, very successful friend who manages 9 figure personal trusts tell me "more money gets lost in poor investments then ever gets spent". His job is keeping these people from making bad investments, usually in businesses they know little about. That really resonated with me. I have a wide range of skills and every time I contemplate starting my own business I always take careful heed of that statement very seriously.

An example of the two: When I was in High School I worked for a very successful Meat Market back East. This guy started in the trenches and worked his way up. He knew every trick. We ordered meat by the truck load. Every time we received a delivery he had one of us go out with a scale. We would zero the scale in front of the driver and proceed to weigh every single box of meat that came off the truck. Mind you this was pallets of meat. It drove the truck drivers absolutely insane but my boss insisted. Guess what? The orders were always off, and always in the distributors favor. We would bring him our findings and he would call the distributor and raise holy hell. We were not to sign anything until he got the OK for a refund from the distributor. It may have been $20 it may have been $300 all depended on the order. IDK if this still goes on (Scoop?) but that's an example of someone who knows his business inside and out.

I don't want to dissuade anyone from following their dreams but, please be certain you understand with 100% uncertainty what you are getting involved in before you put your money on the line.

Best of luck in your endeavors,

[Cold Warrior]

1) You will probably fail. I hope not.

2) I will be standing in line to be your first customer. Without people like you I would be typing this on an IBM selectric.

[Golfinnova]

Got to agree with the others, you need a solid business plan.

You're looking to get into an industry with a very high failure rate and you WILL work harder than any other job so there is a lot to research and consider before making the leap. If you still want to go the sticks and bricks route, look at franchising which gives a lower upfront cost.

If you're open to other industries, shoot me a DM.