Glen Wagstaff, an Utah-based attorney, ventured into international consulting a few years back. His first project involved assisting a Brazilian ice cream company to secure FDA approval. The success of the project placed Wagstaff on the global consulting map, subsequently attracting diverse business inquiries.
His next venture was in the restaurant industry where he, alongside a business partner, established a Rodizio style pizzeria in Utah. Here, he shares the key financial lessons he learned while setting up his restaurant business.
Funding Challenges Faced by Startups
From his extensive experience with various business owners, Wagstaff understands that raising startup capital is often the most challenging obstacle, even when purchasing an existing successful business.
He had a firsthand experience of this while setting up the restaurant. After investing their personal funds to kickstart the business, they were surprised to receive a line of credit from their bank just two days after opening. This brought to light the relative ease of securing operating capital compared to startup capital.
Anticipating Greater Costs
Wagstaff recounts that the restaurant opening was delayed not due to financing issues, but due to several operational problems such as health inspection details and staffing issues. He noted that the actual cost ended up being three times more than the initial estimate.
For those looking to venture into the restaurant business, it is crucial to have a solid financing plan and explore various funding options including fast business loans and investor financing.
Reality of Business Plans
Despite having a detailed business plan, Wagstaff found the reality of running the restaurant different. Especially when their unique concept of Brazilian-style “never-ending pizza” didn’t fit into existing categories, making it challenging to perform competition research and obtain accurate financial projections.
Importance of Attention to Detail
From experiencing a sudden lack of funds due to not linking their merchant processing account to their bank account, Wagstaff learned the importance of paying attention to even the smallest details.
Investing in Expertise
Understanding that running a restaurant was a different ballgame, Wagstaff and his partner wisely decided to hire a restaurant consultant to guide them through the process. This turned out to be their most expensive and yet, smartest decision.
Vision Over Passion
Wagstaff confesses not being passionate about running a pizzeria, but his vision of building a nationally recognized brand and creating a unique product in the market kept him going. His key takeaway was that the long-term vision can keep a business owner going through tough times.
Importance of Starting
Wagstaff encourages entrepreneurs to start their ventures instead of waiting to have everything figured out. He believes things will work themselves out along the way with a long-term mentality.
Read More US Economic News