This is a 10 page research paper over the financial elements of opening and operating a restaurant. It covers everything one needs to know before jumping into the restaurant business. It relies on 7 sources in APA format.
Financial Elements of Opening a Restaurant
The decision to open your own restaurant is an exciting one. You get to be your
own boss and you do not have to worry about making money for anyone other than
yourself. Being independent has its perks but it also has its costs-literally and
figuratively. One of the most important considerations are the financial aspects as they
will make or break your business. I will go over some of the key elements of financial
risks and rewards that you must be made aware of before making the leap into restaurant
ownership.
Buying An Existing Restaurant
If you are looking to purchase a restaurant that is currently in operation, it is
imperative you do a financial analysis of the establishment.
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experienced accountant to assist you with this process. Having a professional who is
familiar with the restaurant business will be able to recognize trends from their past and
help predict their future profit potential. One of the main aspects of your analysis should
be assessing all applicable tax filings that include:
Federal income & unemployment tax reports
State income & sales tax reports
FICA filings
Real and personal property tax reports
Workman's compensation reports
You may also be interested in looking at the balance sheet as they will uncover facts
about the following:
Accounts payable
Accounts receivable
Inventory amount
Inventory turnover
Net worth