Unusual Business Ideas

Severe economic crisis effect business market all other Europe and US. Entrepreneurs face necessity to seriously cut down expenses which would let them lower the prices and keep their clientele. Only the most experienced, smart and active entrepreneurs will survive the economic collapse.

Did you plan to open a restaurant, prepared all the necessary papers and calculation and now think of pending the project till „better times”? It’s perfectly understandable, but believe me - there are certain business perspectives even in such hard situation as world economic crisis! And here are some useful tips on how to improve your chances for success.

1. Don’t round off numbers.
An appendix package in one draft of your loan application package should include information about the kind of equipment and/or materials purchases you plan to make. Show ads and specifications for equipment. Present price lists and contract agreements with suppliers to provide amounts of meat, vegetables, or other deliveries daily or weekly. For big ticket items get ads and special credit terms, and allow vendors to match prices before quoting costs.

2. Consider hiring consultants
The man on the street is not going to tell you which vendors are spotty and which are reliable. But a paid consultant could reap profits early by weeding out menu mistakes, market brainstorms, and downright bad ideas early. Unwelcoming décor or poor execution of cuisine won’t matter to customers how much heart you put in it, they’ll walk away. Your competition would hire them, why don’t you?

3. Rent equipment
Unless your franchise requires special equipment or heavy wear, consider renting equipment. Include in your prospectus why or why not this will or won’t work for your establishment. Also consider to rent furniture. A high estimate for furniture is a big red flag in a startup budget. Renting furniture means that should a reorganization of the space plan be required, there is flexibility. Traffic through the restaurant means a better flow of customers. Costs can shrink without quality losses.

4. Get trade discounts/labor breaks on painting & renovation
If a gut renovation is required, put your back into it. Partner with a local firm to get weekend work or par time crews whose heavy lifting and painting you can supplement yourself. Demand price breaks on paint and other equipment, and be prepared to rent trucks to go get it. Assign labor in pieces, and sign off on all projects with a signed inspection before rehiring that firm or contracting the next stage of work.

5. Explain potential tradeoffs for decreasing total finance amount
Propose a less expensive cash register and software system for better quality televisions. Eliminate labor costs of painting by doing it yourself. Get a quote reduction in exchange for free meals or guest checks comped for the workers. This spreads word of mouth and makes the restaurant look full. Many types of improvements can be made to one section of the enterprise, like better food for older equipment.

6. Delay your liquor license
Liquor licenses are expensive. If you plan to leverage wine sales with covers and bar tabs with mixed drinks, service could drain money from the dining tabs. Delay the bar until you have a waiting list or reservation area that can substantiate the costs of a full bar. If the focus of the new restaurant is a family type dining experience, rethink the alcohol.

7. Get secondhand kitchen supplies.
Used mixers, refrigerators, and knife sets can be bought secondhand from closing restaurants and cut down on cost. Insurance may cover theft, which is less likely to occur in a restaurant without tons of brand new equipment lying alone at night. Employees can have sticky fingers.
Don’t put specialty custom glassware on set tables unless you have unending arrangement with the supplier. Items from the dining table like silverware and coffee cups can vanish out the door. These can be sold under the table or on Ebay to other restaurant owners. Secondhand stuff will stay put.

8. Add cleaning service totals and estimate even higher.
Cleanliness is the most important element in a dining establishment. Don’t assume employees will mop the floor properly, clean refrigerators, or sterilize equipment every night perfectly.
Extra staff for busy weekends and rush hours is a must. If managers depend on wait staff or cooking staff to clean, the quality of their main contribution will suffer. Place an ad for college kids to vacuum and scrub. They can work while the manager preps or does the banking reconciliation. This is also a good way to screen for hard working staff.

These are the so called organizational advices from restaurant business profs. And here are some examples of how Russian entrepreneurs are fighting the crisis:

To sum up I would only like to say that the only things that will really help you to survive in crisis are imagination and unusual approach to your business. Dare to try!