College Connect: Students with Questions about His Entrepreneurial Dream Gets Expert Answers

Posted By David Wilhite

 

By Rachel Hinkle

Victor Edwins, 20, a marketing major at the University of Georgia, has questions about his dream of opening his own restaurant. College Connect found answers to those questions from Bob Pinckney, director the entrepreneurship program at the University of Georgia’s Terry College of Business.

Is it a better idea to rent or buy a building myself?

Depends on the situation and on the cash flow. You may need that money for your kitchen, or your advertising, or to hire people. Many times renting is better In case the location doesn’t work out.

Will I most likely have to go (maybe) months without pay?

Yes, Definitely.

How much money, would you say, I probably needed to start my restaurant?

At least 3 times what you think you’ll need.

  1. If the median cost of starting up a restaurant is around $275,000, or $3,046 per seat, will I have the sufficient funds to cover this or will I need to take out a loan at the beginning? A.     Considering you probably don’t make very much money right out of college, yes take out a loan and make sure you borrow money while money is cheap.

Is it better to finance equipment through other companies or buy brand new equipment?

Those that I have noticed that have made it in the restaurant business have always proven to me that the less money you spend on equipment the better.

  1. How will I be able to market my restaurant in the most cost efficient way in the area        that I am located (Athens, Georgia)?
  2. Social media is very cost effective, but it also depends on your target market. Think about who you are wanting to attract most to your restaurant. Are you targeting            professionals, college students, families, etc.?
  1. Should I focus on the looks and décor of my restaurant from the beginning? Or should I buy cheap décor and buy more expensive décor in the future?
  2. Again, it depends on your target market and what your competition is doing. I would do what looks appealing but as inexpensive as possible.
  1. Should I base my prices around the other restaurants in the area’s prices?
  2. Yes, because that’s your market and competition. Don’t be an outlier unless you have a special hook to the community and you stand out from the other restaurants in a significant way.

Rachel Hinkle is majoring in journalism at the University of Georgia’s Grady College of Journalism and Mass Communication.

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