How many months worth of funds should you have if you want to start your own restaurant business?

Question by jerry_won3772: How many months worth of funds should you have if you want to start your own restaurant business?
I want to have my own restaurant business, how many months worth of funds should I have to start with and should this be the amount of time my business should stay open if things don’t go to well?

Best answer:

Answer by Penny
At least 6 months.

Add your own answer in the comments!


  1. Dr. Deth says:

    plus money for you to live on, because you won’t be drawing any salary until you’re making a profit – that could a long time – plus all the up front money for security deposit, first, last rent, equipment, supplies, initial food purchases

  2. Dave B says:

    Unless you have a really good idea and a great location, opening a restaurant business is on of the top 10, worst financial investments right now. This is not according to me. There are a variety of reports out there. Good luck and have at least 6-9 months to make it while you promote your place around the area.

  3. Paul V says:

    You really should have at least 6 months worth, but one year would make you more prepared for any emergencies. And if something does not take off in 6 months dump it before you loose too much. (Been there and done that, but not in the food industry)

  4. bettyrubleinspurs says:

    If you don’t already know, over 50% of restaurants don’t make it. This is not to discourage you, but only to let you know what it is you are up against. I have owned my own business for the last 10 years and can tell you that you never really have “enough” money, regardless the industry. I would suggest at least 18 months worth of expenses. This includes everything you could possibly think of – food, drink, dishes, workers, payroll, power, insurance, taxes, emergency expenses. The list goes on and on.
    Of course a Plan B is always necessary. How far are you willing to go in order to make a go of things? Would you mortgage your house? Would you borrow from friends/family? Would you allow yourself to go bankrupt? Would it sell it at a loss?
    Write a business plan. If you aren’t familiar with this, contact your local community college for help. The Small Business Administration also can point you in the direction you need. A plan will help clear up your thinking and see things in a realistic manner.
    Good Luck!

  5. mason pearson says:

    Having owned restaurants and knowing the risks involved I would say at very least a year to 18 months. When your restaurant has name recognition, and you open a second one , then you would still need six to nine months.

    It is the second year that will tell you if you are going to be successful or not. In the first six months people try the new place, but it is customers not sales that makes you successful.

    Customers are those who come back over and over again. Sales are one time buyers. Develop a relationship with your customers.

    You are thinking of entering the most risky investments I know of. It will take a lot of very hard work and VERY long hours to be successful. So you and your family if you have one has to be ready for that type of commitment.

    I would highly recommend you getting a good CPA also. My CPA always saved me more then I paid her, which made it a wise choice.

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