Steps to start a restaurant business in Nevada
The restaurant business in the US is valued at $899 billion and there has been a rise in consumers wanting to dine out or have prepared food delivered at home. In order to start a restaurant in Nevada, you will need to create a proper business plan and identify the various important aspects of starting the restaurant successfully. Hence, we have created the following guide that will help you to start a restaurant from home or commercial space with ease.
Choose restaurant concept and brand
A restaurant concept is the key to defining the restaurant and it can be an idea or a theme for example: If you are planning to offer Greek food on the menu then you can integrate a Greek design or create an ambience of Greece. You can also start a restaurant in Nevada with a simple, sleek, and minimalistic decor. It is important to know that the concept will flow through the menu design, service style like fine dining or bistro, and the style of cuisine. Inspiration is often taken from knowledge of local ingredients, heritage, and traditions. When you start a restaurant business plan, the concept is really important as everything else will follow it including the brand creation and branding.
Prepare your business plan
A restaurant business plan is like a framework that will take into account everything right from the proposed restaurant management to branding and menu design. A business plan is essential to start a restaurant in Nevada as it will also highlight the competition and provide an insight into revenue generation. If you want to start a restaurant business plan then the following will be some of the important components:
- Executive Summary
- Company Overview
- Industry Analysis/Market Analysis
- Marketing Plan
- Restaurant Design
- Financial Analysis
- Financial Analysis
Choose a location
Choosing a location is also known as location analysis and is a key component towards making the restaurant a success among future customers. You will require a restaurant business license in Nevada to make the restaurant operational and the license will also be issued based on the location. It is imperative you choose a location based on certain factors like:
- The visibility of the restaurant and this should be determined by car and foot traffic patterns
- Space requirements, for example, for every seat in the restaurant, you will require 5sqft of kitchen space
- Parking options near the restaurant for customers and staff
- Avoid high crime rate areas
- If you have chosen a location to start restaurant delivery service then research the surrounding businesses in that location to understand if they are doing well or not
- Focus on accessibility of the location bearing in mind that restaurants located near highway exits draw interstate travelers etc
- The cost to start a restaurant in Nevada should be a bottom-line consideration as higher upfront costs prior to becoming profitable can drive it out of business
Choose a business structure & set up your business
One of the most important choices you will have to make prior to applying for a restaurant business license in Nevada and registering your business is choosing the right business structure. The structure that is quite common amongst startups is sole proprietorship as it is easy to form and will provide you with complete managerial powers. This type of business structure will be beneficial if you are planning to start a restaurant from home. If you are looking at renting commercial space and are thinking of tax implications then the most beneficial business structure would be a regular C corporation, S corporation, and a limited liability company (LLC). We at IncParadise can help you to register your restaurant business in Nevada as we are expert incorporation specialists and have helped with registration of over 15,000 companies.
Set up your choice of business structure in Nevada today!
Obtain necessary licenses and permits
One of the most important requirements towards making your startup operational is to apply for and obtain a restaurant business license in Nevada. Ideally, you will be required to apply for a general business license with the Nevada Secretary of State (SOS) and an applicable local business license specific to the county or city you are establishing your business in.
Check what type of Nevada licenses your business requires!
Set up your restaurant space and layout
Setting up your restaurant space and layout will ensure you are able to submit layout or floor plan to the city departments. This is helpful especially when applying for a restaurant business license in Nevada or for permits from the city planning department. You can always create the restaurant layout using floor planning software like ConceptDraw or SmartDraw. Some of the aspects to consider while creating your restaurant space and layout include:
- There are several primary spaces that you need to consider for the ‘Floor Plan’ including kitchen, restrooms, bar area, dining area, entry/exit, and waiting area.
- Placing and planning your kitchen area like an island-type kitchen plan provides a better workflow or you can go with the commercial kitchen layout or assembly line layout
- To start a restaurant business plan you need to focus on restaurant space planning by calculating an approximate area per diner like 18-20 square feet per person in fine dining concept. You will also need to work out the table & chair spacing.
Form your menu items
The menu items should be created in accordance with the food concept that your restaurant is planning to promote. Whether you start a restaurant delivery service or fine dining, the menu is at the heart of the entire business. You will need to establish basic food items followed by anything exotic that you may want to offer. The menu will play a crucial role in determining the equipment required, hiring of chefs, and the targeted consumers. Once you start a restaurant in Nevada you can later on increase the menu items or create a menu that will be profitable and sustainable in the long run.
When you start a restaurant in Nevada, one of the biggest challenges you may face is that of hiring qualified labor. Since, this is the food-service industry, you will need to search for and find chefs, assistants in the kitchen, qualified administrative and cashier desk staff, food service, and cleaning and dishwashing. You will need to conduct background checks and screen applicants thoroughly. You need to also ensure that the restaurant business is in compliance with the Nevada regulations on minimum wage.