Starting a Business from Scratch 2
Once the team is in place, it is up to the owner to establish the lines of communication between all members. An initial meeting with all parties around the same table kicking off the project usually accomplishes this goal.
In order to establish a realistic opening date and construction schedule, all of the following must be firmly in place:
Financing, including bank loans, SBA guarantees, private capital and investment funds;
Finished plans, including architectural, kitchen equipment and interior design;
A signed lease or purchase and sale agreement;
A signed agreement with a general contractor;
A signed order with the inventory suppliers, including furniture and decor items.
Whether the project is a remodel or ground-up construction, without these five elements in place, an opening date is only at best a guess.
If in fact you have accomplished all of these steps, the next hurdle to overcome is the permitting process. You will need the help of your architect, general contractor, kitchen equipment supplier, and attorney to guide you through this procedure.
A sign permit can be a long and arduous process. Depending on the local building inspector, and how busy they department is, the issuance of a building permit could take anywhere from 30 to 60 days. A demolition permit is far easier to obtain, and may allow work to begin while waiting for the building permit to be issued.
The way to approach a realistic opening date is by working backwards. Let's say as the owner, your desire is to open your new business on June 1. The reasons for choosing this date may vary from negotiated rent arrangements, to wanting to be open for a specific season or holiday, to investor or bank commitments, or be contingent on closing an existing business. Regardless of why, it is always best to take the desired opening date and work backwards.
The first point to consider is exactly what kind of opening will you have. A soft opening, with little or no advertising, that may include various parties for investors, bankers, the press, politicians, friends, etc. , or opening immediately to the general public? How much training time would you like, for your store staff? How many weeks does the general contractor need for the build-out? What are the lead times on the inventory, furniture, HVAC equipment, etc.?
As a general rule of thumb, it's good to allow ten days to two weeks for training, parties, punch list items, etc. If June 1 is the projected opening date, that brings us back to May 15. A good estimate for the build-out of an existing space, providing the remodeling work is not too extensive, is ten to twelve weeks, although it can be done in as little as eight.
It is also wise to build in some time for unknown contingencies: a field condition may occur that could not be anticipated which will delay construction; a piece of kitchen equipment may become unavailable and have to be ordered from a different manufacturer; something may arrive broken or damaged and need to be repaired.
The importance of this stage of the project cannot be overemphasized. Setting an accurate timeline and opening date is critical to the initial success of the restaurant. Without setting a deadline, the project will seem to never end. Setting too ambitious a schedule may cause mistakes, unnecessary stress, budget overruns, and airfreight as well as overtime charges.
When opening a new business, the public and the press are very helpful if you can get them involved, but it is crucial that you put your best foot forward. No one wants their opening to be marred by unfinished construction details, borrowed furniture, missing equipment or a poorly trained staff. It is only by setting a realistic date and working with your contractors and suppliers as a team that these pitfalls can be avoided.