help with starting a business, have an idea that is a twist on a popular franchise

[hoopsfan2000]

Hi guys, I have what I think is a really good idea for a restaurant concept. It is similar to a franchise that is already successful but I put my own twist on it.

I currently have an office job that pays the bills and is in a very stable sector. It just doesn't excite me that much and I am not passionate about it. I know some people have the mindset that a job doesn't have to be your passion, because working a job is what enables you to fund your hobbies after work hours. But I really want to work in an industry where I am passionate. I enjoy cooking, have worked in a restaurant all through college, and generally enjoy the hospitality industry. But I ended up taking a major in college that was the "safe bet" (accounting). My questions are:

1. How do I know my concept is viable?
2. Would a good idea be to set up a small pop up shop and sample the product to see if people enjoy it? Or to test with relatives and friends?
3. Is the competition too fierce going up against huge franchises? I don't necessarily believe my end goal needs to be franchising, but my idea is sort of geared towards that.

And I know it's just an "idea" now, nothing more. But I feel excited about the potential.

Thanks for any insight!

[Harold Mansfield]

My questions are:

1. How do I know my concept is viable?

Honestly, you don't. You can look at other similar businesses and see what's working for them, study the demographic of the area where you want to open, and so on. But ultimately you really don't know until you put your product on the market with a good marketing plan to get people in the door. Once they are in the door, that's where the magic either happens or doesn't happen.

It's helpful to have experience in the business you want to open to be able to understand the kinds of things that work, don't work, and why. Basically it helps to know how wheels are made before you claim you can reinvent it.



2. Would a good idea be to set up a small pop up shop and sample the product to see if people enjoy it? Or to test with relatives and friends?
Yes, all of that. Testing is never a bad idea. Family and friends is a good place to start, just remember that they love you and are not likely to be your every day customers. Don't forget to test with total strangers and get feedback from people who could care less about hurting your feelings. Unbiased, honest feedback is the only way to truly get better.

What's the food truck scene like where you live? Maybe start that way?


3. Is the competition too fierce going up against huge franchises? I don't necessarily believe my end goal needs to be franchising, but my idea is sort of geared towards that.

Yes, competition is steep. I can't tell you if you can compete or not. Most failures that I've seen stem from having no experience in the business, no management experience, not enough money to operate if the place is not immediately successful, crap food (bad pricing), bad service. Those are the top 5 things that will kill you right out of the door.

If a franchise is the way that makes more sense then do it. Many franchises give you a lot of help, training and support. However, just because you've seen one or two good ideas in a franchise doesn't mean you can't just borrow some good ideas and do your own thing. The thing about franchises is that you can't change the recipes, or menu, or marketing, or anything. If you're interested in owning a specific restaurant like an Olive Garden, then that makes sense. But if you have your own ideas and are confident you can execute them it doesn't. You're going to need a good amount of money either way.


3And I know it's just an "idea" now, nothing more. But I feel excited about the potential.

Thanks for any insight!

Restaurants are hard, and expensive... but I love that business. My experience is mainly in taverns and clubs so it's more booze focused with experience in gaming. If I had the means and opportunity I would definitely go for it and still think about it often. I'm confident that my 20+ years of learning what to do, what not to do, and studying how people end up failing would help me, but you still never know until you put it out there.

It's one of those things where everything has to go right, along with a little bit of luck. But more than anything you must know customer service and management. It's critical.

[KristineS]

First of all, everything Harold said.

Second, I'd start doing research. What are the options for starting a restaurant in your area? What kind of licenses do you need to have? What sort of insurance? Also, you need to start thinking about your idea critically. What's going to make you stand out from the crowd? If your idea is similar to a franchise that already exists, how is the twist you put on it going to separate you from the pack? Really think about what you want to do and start finding out what needs to happen for you to do it. The more knowledge you have, the better able you will be to make an informed decision.

[Dantan1]

Hi Hoopsfan2000,

Starting a business is exciting! It is a mix of hard work, sacrifice, and execution on top of all the planning and research. I have started and sold some businesses before and everything advised above are right.

If you don't want to waste time and capital, you should definitely test it. Unless you are so confident in your concept, testing is always good. Here's some steps you can take in order or minimal cost/risk first.

1. Create a survey using sites like survey monkey (free). Generate questions that get the message across without revealing in whole the concept. Use Facebook (if you have a lot of friends), send them the survey. When surveys are anonymous, it is amazing how honest friends can be!

2. If you got a favorable survey result. Test your concept with a temporary store. Pop ups, weekend fairs, farmers markets, etc. This will give you a nice exposure to actual consumer reactions to your concept. Try a few weekends of this to get a better spread of data. Don't have too high expectations like making a killing during these weekends. You want to gauge the response and see consumer reaction. Take notes during the weekend about who buys, who likes. After a couple weekends, you may have about 50-100 notes on the consumer. Use this as a consumer profile. Your target market.

3. If the response has been good, write up a business plan to launch your store. Knowing your target market, helps in devising location and marketing strategies. Create a startup budget and have at least 4-6 months of burn rate cash reserve (4-6 months of expenses in reserve). As a cash basis, there will be incoming sales but I am risk adverse, so I don't make it too lean. Too many people start businesses overestimating their first 2 months sales volume and end up running out of cash too early.

4. Once the business plan is complete and you feel confident, you can go through through one more step as a confidence booster by asking people you know to invest. When investment is concerned, people generally scrutinize the business plan or idea thoroughly. This is also a nice way to diversify your risk.

You can do 1 and 2 with almost no risk. Just go out there and do it!

All the best!

[hoopsfan2000]

Harold , Kristine and Dan thanks for the very helpful advice !

So you have a better idea my business concept is in the sandwich business. Picture a subway type set up but the sandwiches I have planned are totally different and unique. I could start out independent and the dream would be if it is a success to franchise and have multiple units.

The pop up shop idea is what I'm planning on but would it be hard to do a sandwich concept as a pop up shop? I just went to one recently and it was mainly donuts, bakery type goods. Should I have pre made sandwiches set up? Just thinking of all options. Thanks !

[hoopsfan2000]

Honestly, you don't. You can look at other similar businesses and see what's working for them, study the demographic of the area where you want to open, and so on. But ultimately you really don't know until you put your product on the market with a good marketing plan to get people in the door. Once they are in the door, that's where the magic either happens or doesn't happen.

It's helpful to have experience in the business you want to open to be able to understand the kinds of things that work, don't work, and why. Basically it helps to know how wheels are made before you claim you can reinvent it.



Yes, all of that. Testing is never a bad idea. Family and friends is a good place to start, just remember that they love you and are not likely to be your every day customers. Don't forget to test with total strangers and get feedback from people who could care less about hurting your feelings. Unbiased, honest feedback is the only way to truly get better.

What's the food truck scene like where you live? Maybe start that way?



Yes, competition is steep. I can't tell you if you can compete or not. Most failures that I've seen stem from having no experience in the business, no management experience, not enough money to operate if the place is not immediately successful, crap food (bad pricing), bad service. Those are the top 5 things that will kill you right out of the door.

If a franchise is the way that makes more sense then do it. Many franchises give you a lot of help, training and support. However, just because you've seen one or two good ideas in a franchise doesn't mean you can't just borrow some good ideas and do your own thing. The thing about franchises is that you can't change the recipes, or menu, or marketing, or anything. If you're interested in owning a specific restaurant like an Olive Garden, then that makes sense. But if you have your own ideas and are confident you can execute them it doesn't. You're going to need a good amount of money either way.



Restaurants are hard, and expensive... but I love that business. My experience is mainly in taverns and clubs so it's more booze focused with experience in gaming. If I had the means and opportunity I would definitely go for it and still think about it often. I'm confident that my 20+ years of learning what to do, what not to do, and studying how people end up failing would help me, but you still never know until you put it out there.

It's one of those things where everything has to go right, along with a little bit of luck. But more than anything you must know customer service and management. It's critical.

Great advice Harold. My post above about pop up shops is that a good idea for a sandwich concept? I'd like to test random people opposed to friends and family who say they love the idea but it's hard to know if they're not being biased

[Harold Mansfield]

Great advice Harold. My post above about pop up shops is that a good idea for a sandwich concept? I'd like to test random people opposed to friends and family who say they love the idea but it's hard to know if they're not being biased

I'm not familiar with the idea of a pop up shop. Is that anything like the concept of a food truck?

[hoopsfan2000]

I'm not familiar with the idea of a pop up shop. Is that anything like the concept of a food truck?

A pop up shop is an event in my city when they close a street down and the whole street has various food businesses set up a stand selling their product. Sometimes they have music too but it's usually for the day and the businesses promote their product.

[Harold Mansfield]

A pop up shop is an event in my city when they close a street down and the whole street has various food businesses set up a stand selling their product. Sometimes they have music too but it's usually for the day and the businesses promote their product.
Sounds like a great place to do some market research, testing, and fine tuning of your product, presentation and even marketing.

And maybe even make a few bucks.

[BizAdvisor]

You know what's hip these days..? Food trucks.