Do you like physical work and driving around? Maybe starting a junk removal business is right for you.

Kyle Landwehr started Slam Dunkin Junk and The Junk Academy three years ago. Now he’s making $200K to $300K every month to haul away junk—and teach people how to start a junk removal business of their own.

[su_note note_color="#dbeafc"] With advice from Kyle, we’ll answer the questions about starting a junk removal business below. Click on any link to learn more, or just continue reading.

• What is a junk removal business?
• How to start a junk removal business
  • Step 1. Learn about the junk removal industry
  • Step 2. Create a junk removal business plan
  • Step 3. Build a junk removal brand
  • Step 4. Register your junk removal business
  • Step 5. Get a junk removal business license
  • Step 6. Get a business bank account and insurance
  • Step 7. Create a junk removal price sheet
  • Step 8. Get junk removal equipment
  • Step 9. Market your junk removal business
  • Step 10. Remove junk from home or business
  • Step 11. Expand your junk removal company
• Junk removal business FAQ
• Go start your own junk removal business [/su_note]

What is a junk removal business?

A junk removal business focuses on removing unwanted furniture, appliances, and other items from residences and businesses. It also includes garbage collection, and you may hear it referred to as the waste removal industry.

It’s physical work, and it’s possible to injure yourself. Kyle shared:

[su_quote]I was making $30K to $40K monthly when I broke my ankle stepping off the truck. Breaking my foot is what caused me to start hiring employees and [scale] my business to what it is now.[/su_quote]

He also explained that his injury got him into real estate. Listen to the interview below to find out how:

How to start a junk removal business

1. Learn about the junk removal industry.
2. Create a junk removal business plan.
3. Build a junk removal brand.
4. Register your junk removal business.
5. Get a junk removal business license.
6. Get a business bank account and insurance.
7. Create a junk removal price sheet.
8. Get junk removal equipment.
9. Market your junk removal business.
10. Remove junk.
11. Expand your junk removal company.

Step 1. Learn about the junk removal industry

You should understand the junk removal industry before you enter it. Some of the important questions you should ask before you start a junk removal company include:

• How much does it cost to start a junk removal business?
• How much do junk removal companies make?
• Is the junk removal business profitable?

How much does it cost to start a junk removal business?

The amount of money you need to start a junk removal business will depend on the business’s location (due to cost of living) and the materials you already own.

The items you’ll need to start a junk removal business include:

• A truck: $1,000 to $90,000
• Limited liability company (LLC): Under $1,000
• Business license: Under $1,000
• Business insurance: $1,000 to $10,000
• Dolly: $200
• Trash bags: $25
• Reciprocating saw: $300
• Safety equipment: $100
• Website: $1,200 per year

That means you can start a junk removal business for as little as $4,325 or as much as $102,325. Kyle told us:

[su_quote]If you have a truck, expect to spend around $6,000 starting your business. If you want to know how to start a junk removal business with no money, promote it on Facebook groups during the week and rent a U-Haul on the weekend. That will cost you $40 per day, plus $1.30 per mile.[/su_quote]

How much do junk removal companies make?

According to IBISWorld, there are 8,607 companies in the junk removal industry. They make a combined $73.7B, or $8.6M each. Kyle told us he makes $200K to $300K a month as a junk removal company owner.

Is the junk removal business profitable?

Yes. The gross profit margin is 32.74%, while the junk removal profit margins come out to 7.29% after after taxes, bonuses, and all other costs. This is based on data from 62 publicly held companies.

Kyle told us:

[su_quote]The gross profit margin the first year was around 50% margin, [the] following year 30% to 35% margin, and the third year I hired an operations manager, which took the margin down to 20%, but now I don’t have to be involved in the business.[/su_quote]

How much is a junk removal owner's salary?

The salary for working as an operations manager is around $75,000 annually for waste removal companies. This is nearly $18,000 less than other operations managers. When you run an S-Corp, you will need to use that as your wages and any profit you can pay as dividends.

Step 2. Create a junk removal business plan

For your company to be a profitable business, make sure to write a business plan.

You’ll want to include:

• Your mission and vision
• Ways you’ll make money
• Your target market
• How you will market the business

Check out our interview with Mike Andes to learn how to write a business plan. You can refer to our business plan writing guide as well.

Step 3. Build a junk removal brand

Kyle told us:

[su_quote]My smartest business move was building my plan.[/su_quote]

A distinctive and memorable brand for your service-based business sets you apart from competitors and establishes a reputation for your enterprise. Your brand relies on two main elements: your business name and logo.

First, select a junk removal business name that draws in customers and conveys a strong message about your services. Make sure it’s not already taken in your service area and online.

Next, craft a logo for your junk removal service. You have the option to hire a designer for assistance, or you can create one yourself using an online logo creator such as Canva.

Step 4. Register your junk removal business

You’ll want to register your business with your state. Kyle and most other business owners recommend structuring your business as an LLC, but there are plenty of other structures. Learn more about the business registration requirements and process in our business registration guide.

The cost of registering on the Secretary of State website varies from state to state. To give you an idea of the cost, Kyle said he paid $300 for his LLC in St. Louis.

You’ll also need an Employer Identification Number from the IRS.

Step 5. Get a junk removal business license

A junk removal business may need local or county licenses. Check with your local government’s business office to see what is required in your state.

What license do I need to start a junk removal business?

You may need special licenses and permits for waste removal if you collect hazardous waste or do construction tasks like demolition (which Kyle offers in addition to junk removal services). He also told us:

[su_quote]You could also offer dumpsters for people [which requires licenses].[/su_quote]

Your local business office will be able to help you establish what business licenses you need.

Step 6. Get a business bank account and insurance

A junk removal business needs a small business bank account before it offers junk removal services. The business bank account should have low fees and high interest rates on savings accounts. Keeping your finances separate will be helpful when tax season arrives.

You’ll also need junk removal business insurance. A junk removal company will need commercial auto insurance and general liability insurance at a minimum, but you might want more extensive business insurance, like a business owner's policy (BOP). Learn more in our business insurance guide.

A BOP covers general liability, property damage, and unexpected shutdowns, plus has riders for other policies. We suggest contacting Simply Business to get quotes from multiple insurance companies.

For added financial management, consider enlisting the services of a bookkeeper or accountant. They can oversee business income and expenditures, handle bills and payroll, generate and dispatch invoices, and maintain the financial health of your business.

Step 7. Create a junk removal price sheet

Getting paid for removing junk is nice, but junk removal business owners need to make a profit. That means you need to cover your labor, materials, and overhead costs. To achieve this, it's essential to develop a pricing strategy for your waste removal business:

• Decide how to charge customers: You might want to have standardized prices for time, weight, and volume (like by the cubic foot). Creating all three will help you establish which way makes the most sense for each job.
• Research competition pricing: You don’t want your services to be overpriced or underpriced because both scenarios will hurt your earning potential
• Include overhead: Add all the expenses that are not directly applied to a job, then divide them by the number of billable hours (160 per person, per month). Add this rate to every hour of labor.
• Additional time and materials: You’ll need to cover time driving, disposal fees, taxes, and your profit margin. In general, junk removal services should assume each job will be at least two hours between driving, pickup, and disposal.

Once you've established your junk removal business pricing, you’ll want to create a junk removal price sheet.

Step 8. Get junk removal equipment

Junk removal businesses need a variety of tools, equipment, and software to run successfully.

We’ve got you covered! Get all the supplies you need as a junk removal business owner from the UpFlip Junk Removal Store, or check out the list of tools you need for junk removal jobs below.

What do I need to start a junk removal business?

Junk removal businesses need the following:

• Pickup truck or box truck: You’ll need a vehicle to transport junk. This will be the largest of the business expenses, but Kyle says when you’re first getting started you can just rent a U-Haul.
• 3-in-1 Dolly: A successful junk removal business will need a dolly that converts to a cart. Kyle told us they have a 1,000-pound capacity dolly.
• Safety equipment: Depending on what you do in your junk removal business, you’ll need work gloves, work boots, safety goggles, and hard hats.
• Trash bags and bins: Load small things into these to simplify the process once you get to the dump or recycling yard.
• Reciprocating saw: Being able to saw items into smaller pieces comes in handy if you are recycling air conditioners because wires, copper, steel, compressors, and motors all have different values. Don’t forget blades and extension cords.

Author’s Note: Hauling away a ton (2,000 pounds) of air conditioners can make you around $2,000, based on my time working in HVAC.

You might want other tools including:

• 16-ounce claw hammer
• Construction broom
• Crowbar
• Forearm forklift
• Large trash bins
• Laundry cart
• Long cut snips
• Moving blankets
• Orange vehicle flag
• Packing tape
• Rake
• Screwdriver set
• Shovel
• Sledgehammer
• Tarps
• Utility cart
• Wrench set

Next, find out how to market your junk disposal company.

Step 9. Market your junk removal business

When you start a junk removal business, you’ll need to build a name for yourself. To market yourself, you should:

1. Post on social media.
2. Find junk removal leads.
3. Use junk removal software.
4. Quote prices.

Post on social media

Social media is a powerhouse for all forms of service businesses. Kyle told us:

[su_quote]I went all in on social media, specifically Facebook. You used to have to go to businesses to network, but I can get way more leads from social.[/su_quote]

Junk removal businesses should:

1. Set up a Facebook business profile.
2. Get their friends and family to like the Facebook page and share it.
3. Post pictures of work they do from each junk removal job.
4. Join local Facebook groups and network with potential customers.
5. Create automated FAQs on Facebook Messenger.
6. Keep posting regularly.

Kyle also explained that Instagram is better for marketing his junk removal coaching business.

Find junk removal leads

You’ll need to find customers who need junk disposal services. There are a lot of ways to help people find you when they need help. Kyle discussed where you can find potential customers:

[su_quote]Social media, Google (both search and local ads), flyers, door knocking, and Yelp are all good places to find leads.[/su_quote]

Use junk removal business software

Business software is necessary to help potential customers find your business and manage all the jobs.

The main requirements you are looking for in software include a website, email and text automation, quotes, invoicing, and a customer relationship management system.

Many junk removal businesses use either Jobber or Housecall Pro, which offer all of the services above. Based on testing both for blogs, I like Housecall Pro’s functionality better.

Quote prices

Once you have gotten leads, Kyle said that you’ll want to go to the person’s residence or business location so you can see the extent of the junk haul-off. There, you’ll examine what you need to remove and provide an estimate. If you’re in the junk removal truck, you might even be able to haul the junk immediately.

You should also provide a business card so they can contact you if they don’t want the junk removed immediately.

In addition to offering home and office junk removal, Kyle suggested the following services:

[su_quote]You can also offer house flipping, dumpster rentals, and demolition.[/su_quote]

Step 10. Remove junk from home or business

When it’s time to collect the junk, you’ll go to the customer’s location and put it in the truck or scrap trailer. Removal time will depend on the number of items, ease of getting to them, and other tasks you need to do.

When you are done, you’ll want to get paid for junk removal. You might also want to provide junk removal business cards because the waste removal industry doesn’t get much repeat business, but business cards could help you get referrals.

Finally, you’ll take the junk to the dump, a recycling yard, or somewhere that you can repair it. When there are things you can recycle or repair, you can commonly make some extra money when you have slow periods.

Step 11. Expand your junk removal company

When you start a junk removal company, you’ll want to find ways to expand it. Kyle told us:

[su_quote]Focus on perfecting one thing, but be open to expanding to other services. In my case, it led to house flipping and coaching.[/su_quote]

You could recycle or repair appliances to make extra money, too. As your business grows, you could also franchise your business to help other people get started quicker.

Find employees

Kyle explained:

[su_quote]Lots of people thought I was all talk, but once I started a lot of my friends wanted to become junk removers.[/su_quote]

If you don’t want to work with friends, learn about hiring employees from a recruiter.

Systemize everything

Establishing and documenting systems and policies for your business can make it run smoother, even in your absence.

Junk removal business FAQ

How much is junk removal for customers?

Junk removal pros normally charge a minimum pickup fee of $50 to $150, and larger jobs may cost a minimum of $100 to $450. If customers rent dumpsters, those may cost $30 to $285 per day.

Can I buy a junk removal franchise?

Yes, you can buy a junk removal franchise. Some of the common junk removal franchises are:

• 1-800-Got-Junk?: The most famous commercial junk removal company hauls away all kinds of junk.
• College HUNKS Hauling Junk & Moving: Starting a junk removal business with College HUNKS means you’ll provide moving and junk removal services.
• Bin There Dump That: This hauling junk business brings dumpsters to people’s homes, then hauls it afterward. Learn more.
• Junk Removal Authority (JRA): The JRA offers the equivalent of franchise support without royalty fees.
• JDog Junk Removal & Hauling: JDog focuses on helping veterans start waste removal companies. They also donate or recycle over 60% of junk.
• The Junkluggers: Junkluggers franchises offer same-day and next-day junk and trash removal.

Learn about other junk collector franchises.

Go start your own junk removal business

Whether you want to start a junk removal side hustle, buy a franchise, or start your own business, we’ve covered every aspect of entering the junk removal business as an entrepreneur.

It’s up to you to get started. What kind of junk removal will you do?

Opening a restaurant can be a real challenge because competition is high, but restaurants are making a comeback while other industries have narrowing profits. If you want to open your own restaurant, we can show you how! We talked with the owner of one of the oldest restaurants in the U.S. James Louie owns 50% of Huber’s Cafe and the 150-year-old restaurant makes more than $180K per month. The 1999 Restaurateur of the Year shares the secrets to their longevity. He’ll share insights into:

• Creating a successful restaurant concept
• Funding your business
• The importance of the restaurant menu
• Choosing a commercial space
• And other keys for restaurant endurance

[su_note note_color="#dbeafc"] Follow this easy 9-step process to get your restaurant started (click on any of the links to jump to that section):

• Learn About Restaurants
• Ideas for Your Own Restaurant Concept
• Identify Your Ideal Target Market
• Create a Restaurant Business Plan
• Fund Your Restaurant Business
• Consider Restaurant Names
• What Do You Need to Open Restaurant?
• How to Open a Restaurant
• How to Advertise a Restaurant

[/su_note]

Step 1. Learn About Restaurants

You need to have a variety of skills before opening a restaurant. You’ll need to understand:

• Cooking
• Customer Service
• Financial Management
• Time Management
• People Management

While you can go to culinary school or get a business degree, there’s no better way to learn than working in a restaurant. In fact, many successful entrepreneurs, like Michael Dell, started their careers in restaurants. James told us: [su_quote]When I was a kid, I wanted to play baseball but I wasn’t drafted by the Red Sox. I got drafted by the U.S. Army—and it wasn’t for baseball. After a few years I joined the family business and it was a great decision because I was a really shy kid and you can’t be shy in the restaurant business.[/su_quote] Check out our interview with him below: [su_youtube url="https://youtu.be/q8e3OKlQEcg"] We’ve got more steps for opening a restaurant. Keep reading!

Step 2. Ideas for Your Own Restaurant Concept

Small business owners have a ton of restaurant concepts to ponder when they decide to open a restaurant.  Review each business model carefully to decide which is best for you. Consider the following restaurant styles:

• Quick Service Restaurants
• Food Truck Business
• Fast Food Restaurants
• Casual Dining
• Delivery Service
• Fine Dining 
• Bar and Grill 
• Buffets
• Restaurant Franchises
• Restaurants Focused on Specific Foods 

For example, Huber’s Cafe is focused on turkey. James told us: [su_quote]We use the whole turkey, but we don’t sell the neck as an entree.[/su_quote] Despite all the restaurant styles, James told us: [su_quote]You have two options:

• Make something no one else has. 
• Do it better than anyone else.[/su_quote]

What Is the Restaurant Industry Outlook?

According to IBIS World, the food service industry makes over $1.12 trillion across over 1 million businesses. There are 135 reports that come up covering restaurants from pizza places to italian, franchise, fast food, or single-location full-service restaurants.  For the purpose of this article, we’ll use report 72211b: Single Location Full-Service Restaurants in the US. I strongly advise you review their full list of restaurant reports to see if there is one that is more relevant to you. This group of restaurants includes: “single-location, independent or family-operated restaurants that provide food services to patrons who order and are served while seated (i.e. waiter and waitress service) and pay after eating. These businesses may sell alcohol and other beverages in addition to providing food services to guests.” These single-location restaurants make up nearly 16% of the 1 million restaurants, 18.6% of the food service revenue, but only 4% of the industry profit. This makes it a lower profit than chains, bars, and fast food restaurants. Such revenue is expected to grow from $208.9 billion in 2023 to 211.2 billion in 2028. Those in the fine dining field are seeing the most success because high-income earners are less impacted by price changes. I would describe Huber’s pricing as being on the low end of the fine dining spectrum. Adam told us: [su_quote]You need top quality products and low turnover. It’s the only way to maintain quality.[/su_quote] He went on to describe the current environment. [su_quote]We had to raise prices because of the current economic environment, rising food costs, and challenges finding employees.[/su_quote] He also warned about the challenges of restaurant startup costs. [su_quote]One of the biggest issues with a new business or new restaurant is having enough financing.[/su_quote]

Who Are the Major Players in the Restaurant Industry?

The major players in the restaurant business all have multiple locations. Some of the major players in restaurants include:

• Darden: The parent company of Olive Garden and Longhorn Steakhouse makes nearly $9 billion per year and nearly 10% profit margin. Figure out how to open a restaurant that emulates their business strategy and you’ll be a happy restaurant owner.
• Chipotle: The leader in the fast food industry has made a lot of gains over the years. It has surpassed both McDonald’s and Chick-Fil-A to have 2.2% market share. Chipotle makes around $7 billion and keeps growing, but their profit margin slightly lags the fast food industry.
• Hakkasan Group: A nightclub and bar operator that owns multiple Vegas hotspots earns more than $360 million dollars but has a lousy 2.4% profit margin. 

Smaller players can still make a great living in the restaurant setting. James told us: [su_quote]We make $180K to $200,000 per month with 5% profit, 10-12% in November to December.[/su_quote] Keep reading to learn about identifying the target market before opening restaurants.

Step 3. Identify Your Ideal Target Market

In this step to open a restaurant, you’ll want to identify your target customers. Try to understand what kind of prospective customers visit the style restaurant you are opening. Some of the information you’ll want includes:

• Generation: Understanding which generations are more likely to eat at a restaurant can be helpful. For instance, getting younger generations to try new cuisines might be easy, while asking them to spend $200 on fine dining might not be.
• Gender: Women tend to be more likely to view food-based social media and blogs. If you can get them interested, you have a good chance of getting their significant other to try your food.
• Location: Do people tend to travel to eat at a restaurant or do they want something closer to their house? Depending on the location and type of restaurant, the answer varies.
• Wealth: If you’re trying to sell a premium experience, you’ll need to be in a premium neighborhood and market your restaurant opening to those that can afford it.
• Buying Preferences: You’ll want data like frequency of eating out, preferred means of payment, time of day more likely to eat, and what social media influencers they follow.

RestoHub has a great article on demographics for restaurants. Another great site for market research is OpenTable’s Diner Survey. Make sure to check out both before starting a restaurant, and save the Diner Survey in your browser favorites because they release new reports quarterly.

Why Do Restaurants Fail?

The most common reason restaurants fail is because the business owner runs out of money. You’ll want to think about everything that can go wrong and how to overcome it before you open a new restaurant. James told us: [su_quote]Most new restaurants fail because they didn’t secure funding to help them reach the point of profitability.[/su_quote] That means you’ll need to gather as much data about your restaurant type as possible and include it in your restaurant business plan, which we’ll discuss next. 

Step 4. Opening a Restaurant Business Plan

One thing to consider when opening a restaurant is a business plan. Your restaurant business plan should help guide the decision-making of your new restaurant. You’ll want to include:

• An Executive Summary
• Restaurant Type 
• Startup Costs
• Operating Costs for 5+ Years
• Marketing Plan
• Organizational Chart
• Funding Needs

Check out our interview with Mike Andes about how to write a business plan: [su_youtube url="https://youtu.be/Seac5PbUZXk"] The Small Business Administration is the go-to resource for all small business planning. Check out the SBA business planning guide.

Templates

In addition to the SBA resources, check out these free business plan templates!

• One-page business plan template
• Our Blog: How to Write A Business Plan (Plus Examples and Templates)

Steps to Opening a Restaurant Checklist 

We’ve created a checklist to help you with your restaurant opening. Download it below.

Step 5. Fund Your Restaurant Business

Budgeting, then funding your budget properly is essential to a restaurant’s success. We’ll look at information to include in your restaurant business plan and budget.

How Much Does It Cost to Open a Restaurant?

According to RestaurantOwner.com, 350 restaurants gave their input on their startup costs. You can expect to spend: [su_note note_color="#dbeafc"] Startup Costs: $175,500 to $750,500, which includes:

• Construction Costs: $70,000 to $472,500
• Kitchen and Bar Equipment Costs: $40,000 to $196,250
• Pre-Opening Costs: $10,000 to $50,000

[/su_note] In addition, you should expect the following costs associated with owning a restaurant. [su_table responsive="yes" alternate="no" fixed="yes"]

	$500K Annual Revenue	$1 Million Annual Revenue	$5 Million Annual Revenue	$10 Million Annual Revenue
1 Year Operational Expenses	$348,929.07	$811,524.10	$4,043,071.67	$8,019,237.71
3 Year Operational Expenses	$1,040,611.82	$2,447,915.44	$12,146,020.61	$24,109,178.93
5 Year Operational Expenses	$1,729,846.22	$4,147,119.35	$20,264,029.56	$40,237,087.15
10 Year Operational Expenses:	$3,514,456.46	$8,660,214.90	$40,309,500.69	$84,729,936.20

[/su_table] Based on the startup costs plus ongoing costs, your restaurant planning should include how you will achieve funding of $1,088,500 to make it through the first year. Achieving this value of funding should give you enough runway to establish restaurant business profitability assuming you manage your restaurant to industry benchmarks. Many business owners opt to open a food truck over opening a new restaurant because of the cost of opening a restaurant. Find out how Carlos started with a food truck before his restaurant opening: [su_youtube url="https://youtu.be/2idW6fSfvIQ"]

How Much Do Restaurant Owners Make?

Restaurant owners make any salary they provide themselves, tips (if they are the server), and the profit from the company. Based on the survey cited above, you might not earn any money for 12 months if you rely on profit. The table below is a breakdown of how much a small business restaurant might make. [su_table responsive="yes" alternate="no" fixed="yes"]

	Bottom 25% ($550,000 Revenue, 0% Profit, No Salary, Tips only)	Median ($1,125,000 Revenue, 5.5% Profit, Salary-Median, No Tips)	Top 25% ($1,880,000 Revenue, 15% Profit, Salary-High, No tips)
Profit	$0	$61,875	$282,000
Tips	$82,500	$0	$0
Salary	$0	$59,440	$98,070
Total	$82,500	$121,315	$380,070

[/su_table]

Budgeting

Similar to budgeting in your personal life, creating and maintaining a professional budget is a vital component of starting a successful business. The budget should include:

• Costs associated with business licensing
• Costs of the space, equipment, utilities, and food
• Costs of liability insurance to protect your business if something goes wrong
• Employee costs
• Cost of accepting credit cards
• Software for running the business
• Fees to delivery apps
• Taxes
• Paying yourself

Budgeting Resources:

Here are a couple of budgeting resources you can use: 

• A complete guide to creating your business budget and managing expenses
• A breakdown of the necessary restaurant costs

How to Get Restaurant Funding

Here are a few ways you can get the funds for restaurant equipment, your business location, menu items, and other startup costs. Some of the most common for small businesses include:

• Personal funds: Almost every owner will invest some of their own money when starting a restaurant. Bootstrapping is the most common way of starting a business.
• Government programs: Check the SBA site to see if there are grants for opening a restaurant. Then apply to see if you qualify.
• Small business loans: You might qualify for a small business loan especially if you are a franchise. Try our preferred lender, National Business Capital.
• Home equity loan: A home equity loan is a great way to get enough funds to start your restaurant, but many restaurants fail. If yours fails, you lose your home.
• Business partner: Many amazing chefs open their first restaurant because they were approached by a business partner.
• Friends and family: People who trust you and believe in your mission may be willing to help you get started.
• Crowdfunding: See if you can get retail investors to fund your company.
• Credit cards: You might use credit cards to fund part of a small restaurant, but most people don’t have a half a million credit line on their card. You’ll probably need other ways to fund your new restaurant in addition to a credit card.

Learn about business loans or keep reading for the rest of the steps to open a restaurant.

How to Open a Restaurant with No Money?

There are many new restaurant owners that have started cooking food at home and earned the money as they went. In fact, we talked to Carlos who started with a cart he pushed around. He grew until he could buy a food truck, then started a restaurant. Find out how: [su_youtube url="https://youtu.be/8MPTE67PYcY"] You can also try to find investors or get a small business loan.

How to Open a Restaurant with No Experience

You can invest in a restaurant without experience, but it will be really challenging. Restaurants are one of the fastest paced businesses in the world. During busy hours restaurants can reach maximum capacity and stay there for several hours at a time. If you’ve never worked in a restaurant, I strongly suggest finding a business partner or restaurant consultant to help you.

Step 6. Consider Restaurant Names

Restaurants choose their names in different ways. Some popular methods include:

• Using a family name: Huber’s Cafe is named after the original owner.
• Creating a pun: Many Asian restaurants use this strategy. I once went to a Pho restaurant named Pho King Pho Nomenal.
• Include the name of the food: This is common when someone considers opening a BBQ restaurant.
• Evoke emotions: Raising Cane’s is named after the owner’s dog Cane.
• Get Creative: You don’t have to stick with conventional names.

Check out our restaurant name generator.

Don’t Forget to Register a Domain

When registering a domain name for your business, always go for a .com. Our name generator connects you directly to Name Cheap, but you can always get domains from GoDaddy or your website provider. Once you’ve chosen your restaurant name and bought the domain, it’s time to register it with the government. The SBA provides a useful guide for how to do this.

Step 7. What Do You Need to Open Restaurant?

You need to meet the following legal requirements when opening a restaurant: [su_note note_color="#dbeafc"]

1. Create a business entity.
2. Get an Employer Identification Number (EIN).
3. Get restaurant licensing.
4. Buy a liquor license (if applicable).
5. Get a food permit.
6. Get a sales tax permit.
7. Set up unemployment insurance.
8. Buy business insurance.

[/su_note] We’ll discuss each of these in more detail.

Create a Business Entity

You can create a legal structure on your own, but we recommend working with an:

• Attorney
• Accountant
• Tax specialist

Restaurants will want to be formed as a corporation or LLC to protect the business owners because both employees and customers will be at your restaurant and could get hurt. Our partners at Better Legal can help you set up your business legal structure.

Corporation

Establishing a corporation provides personal liability protection and tax benefits. However, corporations are more heavily regulated than LLCs. They also incur double taxation, meaning you’ll have to pay income tax and corporate tax on profits.  

Limited Liability Company

A Limited Liability Company (LLC) is a legal business entity that also offers personal liability protection for the business owner while without double taxation. You can have one or multiple owners as an LLC. You can even opt to file taxes as an S-Corp to get some of the corporate benefits without double taxation. Find out the differences between an LLC and an S-Corp. LLCs will typically need to have an operating agreement, especially if the business is a multi-owner LLC. A new restaurant should get an LLC, at a minimum, to protect against personal responsibility against:

• Worker injuries
• Guests getting food poisoning
• Serving a drunk driver

Learn more about business entities.

Every Restaurant Needs an EIN

Your restaurant will need an Employee Identification Number (EIN) to hire employees and pay payroll taxes. An EIN is similar to a social security number for your business. You’ll need it to:

• Open a business bank account.
• File tax returns.
• Apply for business licenses.

Get your EIN from the IRS or call 800-829-4933 for more information.

Get Your Restaurant License

You’ll need to find out what restaurant licenses your location requires before opening restaurant operations. The SBA tool will help you when it comes to applying for a business license or permit. Remember to pay special attention to the regulations involving liquor, which we’ll discuss next.

Buy Your Liquor License

If you want to serve alcohol, you’ll need a liquor license. Go to the Alcohol and Tobacco tax and Trade Bureau (TTB) website to get a federal retail liquor dealer permit and find your local liquor board.  Liquor sales are some of the highest profit menu items, so you’ll want to make sure to get this.

Apply for a Food Permit

A restaurant requires a health inspection in many locations because they want to make sure you follow food safety regulations. These may also come with other requirements like a training course for the food handlers card in Las Vegas.

Get a Sales Tax Permit

Most states have sales tax requirements that must be followed. Each state is different, so make sure to check with your Secretary of State office to establish what the local requirements are. Avalara has a guide on sales taxes. Check it out.

Set Up Unemployment Insurance

Unemployment insurance protects employees if they are laid off. While we hope your restaurant business will not have to lay off employees, recessions occur. The U.S. Chamber of Commerce has a ton of information on unemployment and also offers links to each state agency that handles state unemployment. You’ll have to pay around $420 per employee on a federal level plus any state UI.

Buy Business Insurance and Liability Insurance

Business insurance is necessary to protect a restaurant when accidents occur. The primary types of business insurance include:

• Business General Liability Insurance: For when costly damage occurs to a person or their property.
• Professional Liability Insurance: Protect the business in case something happens that causes injury or death.
• Cybersecurity insurance: Protects the restaurant should credit card information get stolen.

Apply for business insurance from Simply Business to find the best insurance quote for your restaurant. Keep reading for more tips on opening a restaurant.

Step 8. How to Open a Restaurant

Here’s the deal: You will have many things to consider when starting a restaurant, but don’t worry. We’ll show you how to start a restaurant by following these steps:

1. Create a menu.
2. Find a location.
3. Purchase equipment.
4. Establish a pricing structure.
5. Implement the business systems.
6. Hire employees.
7. Control the cost of food.
8. Follow safety and ethical business practices.

Keep reading to learn how to create a menu for a restaurant.

Create a Menu

When you start a restaurant, it’s easy to get lured into creating a massive menu, but don’t be fooled. James told us the secret to a successful menu comes down to two things: [su_quote]Serve something no one else has or make it better than anyone else.[/su_quote] OpenTable agrees! They suggest the following strategy for creating a menu:

1. Build your menu around your masterpieces.
2. Add appetizers that compliment the meal.
3. Then add desserts and drinks.
4. Don’t forget soups and salads.
5. Add the items that every restaurant in your category is expected to have. You don’t need more than 15 entrees.
6. Limit each category to less than 10 items.
7. Use the menu within your marketing plan to help drive the dining experience to your unique selling point.

Learn more about building a menu that enhances the dining experience. Then go check out Huber’s menu.

Huber’s Cafe Menu

Huber’s Cafe menu is a high-end cafe that differentiates itself from its competitors based on how they cook their turkeys. James told us: [su_quote]We use the whole turkey, but we don’t sell the neck as an entree.[/su_quote] Unlike many upscale restaurants, Huber’s includes pictures in their menu, which I love! (It is so difficult to choose a meal when I can’t picture the presentation.) They picture all their turkey meals, which shows adherence to OpenTable’s first suggestion. They cover all the bases expected with fine dining and 10 items per category. They even make wine suggestions to go with each meal. The most interesting point on their menu is how prominently they feature their best selling drink.

Best Selling Drink: Spanish Coffee

Every restaurant should sell liquor and create a signature drink. Even breakfast restaurants do bottomless mimosas!  Huber’s Cafe has nailed theirs! Anyone starting a restaurant hopes to get such a successful drink. James told us: [su_quote]We started selling a ton of Spanish Coffee in the 1970s and early 80s.[/su_quote] He went on to explain: [su_quote]In fact, we’re the largest user of Kahlua in the galaxy![/su_quote] He even gave us a tip about how to start a restaurant that can save you a lot of money. [su_quote]Insurance companies don’t like insuring restaurants that get more than 50% of their sales from alcohol. We keep our sales at 60% food and 40% alcohol to save money on insurance.[/su_quote] Check out the famous Spanish Coffee below: Keep reading for more information on starting a restaurant business.

Find a Location for Your Restaurant 

Your restaurant location can make or break a restaurant. You’ll want to choose a spot with:

• Lots of foot traffic
• Good parking
• A good fit for your service style (Service style can vary from buffets, pickup, dine-in, delivery, drive through, full-service, and more.)

We discussed the importance of the location and how the dining room pays homage to the building’s history and adds to the restaurant’s success. Huber’s was founded in 1879 so the building has a charming mystique. James told us the restaurant was originally much smaller. He explained: [su_quote]The restaurant was originally a bar, but Great Uncle Jim converted the bar into a restaurant in 1919 to avoid prohibition.[/su_quote] Then in 1997, the dining room space was bought when an adjacent business closed. James explained: [su_quote]There were lines to get into the bar.[/su_quote] The additional space led to what James describes as “Dynamic.” The space includes skylights and the original mahogany walls. The iconic restaurant has also been included in movies. When we asked him about it, James told us: [su_quote]Some of our clients are in the movie business. If someone wants to shoot a movie, they have to do it while closed.[/su_quote] Find out more about choosing business locations.

Purchase Restaurant Equipment and Furniture

Each location will need different equipment and restaurant furniture. Some of the items you’ll need to get for any restaurant include:

• Tables and chairs
• Bar stools
• Hostess podium
• Drink machines
• Dishwashing machines
• Ice machines
• Prep tables
• Kitchen equipment (varies based on restaurant type)
• Vent hoods (remove heat)
• Dishes, cups, and utensils

Get new equipment at Culinary Depot or look for deals on used equipment in local marketplaces. At Huber’s, some of the items they use to cook includes:

• Combi-oven (steamer + convection oven)
• Double stacking convection ovens
• Groin pot (with soup stock and gravy)

How to Calculate Food Pricing

There are three main ways that restaurants price food:

1. Use the cost of goods (COGS) sold divided by industry benchmarks.
2. Developing pricing similar to other restaurants.
3. Use the cost of food divided by industry benchmarks.

Let’s look at each way of how to run a restaurant.

Calculate Menu Prices with Cost of Goods Sold

Calculating the cost of goods sold involves adding the cost of the ingredients and the labor costs that are incurred making and serving each item. This method can be fairly difficult especially, since restaurants have fluctuating business throughout the day. Let’s assume it takes: [su_note note_color="#dbeafc"]

• All employees make $10 per hour
• 5 minutes of prep time
• 10 minutes of cooking time
• 5 minutes of serving time
• The cost of the plate is $5

[/su_note] That means your cost to make and serve a single plate is $8.33. Next, you’d divide it by the ratio of COGS/Revenue, which was .574 in 2022. That would make the plate $14.51.

Price Similar to Other Restaurants

Another pricing strategy is to price your food comparable to successful restaurants in your area. You’ll want to check competitor pricing online to make sure that the market will pay the price you want to charge. If they are selling a similar dish for $29.99, you probably want to go with their pricing compared to the other ways, which come out to far less.

Use Ingredient Costs to Calculate Menu Pricing

This method works similarly to the COGS pricing method, but only uses the cost of food from the food supplier and the industry benchmark for purchases and revenue. We’ll use the same $5 food item as in the other examples. You’d want to divide the $5 plate by the industry benchmark for food, which was .263 in 2022. Using this method, the plate would cost $19.01. We’ll round up to $19.99 because it looks better on the menu.

Note About External Delivery Services

If you use an external delivery service, they normally charge the restaurants a fee. UberEats charges up to 30%. If that comes out of the $19.99 in the previous step, you’ll lose money. Just divide by .7 to get a price of $28.56, which we’ll round up to $28.99. That’s why restaurant pricing has increased for customers. Some restaurants open a second business for delivery services so they can charge less in store than they do on apps because it is often illegal to charge different customers different prices for the same item.

Implement Restaurant Systems 

Before you start operations, you’ll need systems to run it. You’ll need a:

• Sales System: Huber’s uses Aloha from NCR.
• Inventory System: Huber uses FoodTrak.
• Payroll System: ADP is Huber’s preferred payroll provider, but you can check out other payroll providers, too.
• Accounting System: James told us they have a bookkeeper and an accountant but are looking at Quickbooks or PeachTree.

James also mentioned you need to do a weekly manual alcohol inventory.

Hire Employees

Most restaurants will need employees because one person can’t manage the restaurant, host, serve, bartend, and be a head chef. We discussed hiring with James in our interview about running restaurants. He told us: [su_quote]It’s gotten much harder to find amazing staff. Sometimes we can’t get people to come in for interviews.[/su_quote] He also explained what he looks for when hiring the front of the house staff. [su_quote]Do they smile a lot?[/su_quote] Huber’s has more than 40 employees and has had multiple employees who have stayed with them for more than 40 years!  James gave two pieces of advice for managing employees. [su_quote]Don’t get in people’s faces. If there’s a problem, deal with it in private.[/su_quote] and [su_quote]Give your employees responsibility.[/su_quote]

Pay the Employees 

Employee compensation will be your biggest expense. You should expect to spend 25% to 40% of your revenue on employees depending on your state. Many states allow tips to count toward minimum wage, but you may find it difficult to find employees if you pay the minimum wage for tipped employees. Find an updated table of minimum wages by state on Minimum-Wage.org. According to the BLS the median wage for various restaurant jobs is:

• Cooks: $14.43 per hour or $ 30,010 annually
• Restaurant Managers: $28.58 per hour or $59,440 annually
• Bartenders: $12.67 per hour or $26,350 annually

Most employees prefer weekly paychecks. Find out why you should pay weekly instead of biweekly.

Follow Tax Laws

Your restaurant will need to follow state and federal payroll tax laws including requirements to keep a record of employment taxes for at least four years. The IRS tax filing guide is the best source of information for a new business.

Follow Federal Employment and Labor Laws

You’ll need to display posters with labor laws for employees in your restaurant. Follow the employer guide regarding how to display them.

Other Requirements

• The Federal Unemployment Tax Act (FUTA) requires any business with employees to pay a payroll tax.
• Employment Eligibility Verification (Form I-9) allows business owners to verify the identity and employment clearance of every person they hire.
• Meeting Occupational Health and Safety Administration (OSHA) standards define workplace safety requirements and are necessary for any business (and highly relevant in an industry as physical as a restaurant).
• Worker’s Compensation Insurance is a must for restaurants, as it helps businesses avoid the cost of an employee’s medical bills and lost wages following a workplace injury.

Follow Safety Regulations for Restaurants 

Safety is critical to think about when learning how to start restaurant business operations. Restaurants have safety concerns: 

• Burns
• Food poisoning
• Cuts
• Food allergies
• Serving intoxicated customers
• Injuries from slipping or falling

Don’t worry! Here are some best practices you should put into place as a restaurant owner: [su_note note_color="#dbeafc"]

• Develop and implement written safety and emergency response procedures.
• Provide worker orientation and training on safety procedures.
• Follow a process to identify, control, and mitigate workplace safety hazards.
• Regularly inspect your workplace to help identify any potential hazards.
• Investigate and document accidents (or close calls) to prevent a future occurrence.
• Hold safety and health refreshers regularly.
• Keep records of workplace health and safety for review during internal or external investigations.
• Keep a first aid kit available and well-stocked in your restaurant.

[/su_note] OSHA provides a restaurant safety worksheet with lots of useful tips. 

Step 9. How to Advertise a Restaurant

Restaurants have lots of options to help people discover their business. You’ll want to:

• Create a Website: Learn how to build a website. Make sure to include your menu and a way to order.
• Start Social Media Profiles: Creating social media channels creates easy backlinks to your website and makes it easy for your customers to share pictures of your food.
• Create a Google Business Profile: Get found on Google Search and Google Maps by creating a profile and keeping it up to date on Google Business Profile.
• Partner with Other Businesses: James told us: “God sent UpFlip here to help us promote our business.”
• Start a Rewards Program: James uses the “Birthday Club” to build a mailing list and provides a free meal on your birthday.
• Consider a Soft Opening: We’ll discuss this more below.
• Advertise Your Grand Opening: We’ll also discuss this more below.

What Is a Soft Opening for a Restaurant?

A soft opening is a method of preparing the restaurant for the grand opening. Invite family and friends to try the sample menu during a fun evening together. The soft opening will help the restaurant:

• Work out kinks before serving the general public.
• Get good pictures for marketing.
• Help identify top performing employees.
• Get feedback on menu items early.

After you have a soft opening, you’ll want to advertise the grand opening.

How Should I Advertise My Grand Opening?

Your grand opening is when you introduce yourself to the general public. The goal is to drive attention to your new establishment. You’ll want to contact local media and food influencers to invite them to try your menu. You might also want to post ads on social media and search engines. The goal of the grand opening is to drive attention to your new establishment.

Are You Ready for the Restaurant Industry?

We’ve shared everything you need to prepare to open your own food service business. The hardest part is gathering the resources, the determination, and the team to accomplish your goals. You can achieve them—you just have to keep working toward it each day. What kind of restaurant would you open?

Be prepared when you join a mastermind group: It can help you make meaningful changes and advancements in your professional and personal life. In the business realm, flourishing mastermind group meetings often combine successful business leaders and a group of small business owners focused on bringing their creative ideas to life.

[su_note note_color="#dbeafc"] There are numerous mastermind group options that you should look at to decide whether a given mastermind is right for you. We also talked to a member of the UpFlip team who’s been masterminding for seven years and share her tips and takeaways.

• What is a Mastermind Group?
• What is a Mastermind Class?
• How to Find Mastermind Groups
• Case Study: Our Editor’s Mastermind Experience
• Best Mastermind Groups for Entrepreneurs
• More Tips for Finding a Mastermind Group
• Who Are Your Ideal Mastermind Group Members? [/su_note]

Read our mastermind insights from start to finish, or click any of the links above to jump straight to the mastermind info you need right now.

What is a Mastermind Group?

A mastermind group is a small, structured group of people who come together to support and encourage each other in achieving their goals. Mastermind groups typically meet regularly, either in person or online, to share ideas, provide feedback, and hold each other accountable.

The concept of mastermind groups was popularized by Napoleon Hill in his 1937 book Think and Grow Rich. Hill believed that mastermind groups could help individuals achieve success by leveraging the collective power of the group's members.

Mastermind groups can be beneficial for a variety of reasons, including:

• Increased motivation and accountability: A mastermind group can help you stay motivated and focused on your goals. Knowing that you have a group of people who are cheering you on and holding you accountable can make a big difference in your ability to achieve your goals.
• Shared ideas and feedback: Mastermind groups can be a great source of new ideas and feedback. When you share your goals and challenges with the group, you can get valuable insights and suggestions from others who have been there before.
• Networking and relationship building: Mastermind groups can help you build strong relationships with like-minded individuals. These relationships can be beneficial both personally and professionally, as you can learn from each other, support each other, and help each other grow.

If you're looking for a way to accelerate your success, joining a mastermind group could be a great option. Mastermind groups can provide you with the support, encouragement, and accountability you need to achieve your goals.

A mastermind group might also be referred to as a mastermind event, especially when it is hosted in person as opposed to online.

What is a Mastermind Class?

A mastermind class is a type of educational program that brings together a small group of individuals to learn from each other and collaborate on projects. Mastermind classes are typically led by an experienced facilitator who guides the group through a series of learning activities and discussions.

The goal of a mastermind class is to help participants develop their skills, knowledge, and networks in a supportive and collaborative environment. Mastermind classes can be beneficial for a variety of people, including entrepreneurs, business professionals, and creatives.

Some of the benefits of participating in a mastermind class, which might be a one-time event or more limited in scope than an ongoing mastermind group, include:

• Rapid learning: Mastermind classes provide participants with the opportunity to learn from each other's experiences and perspectives. This can help them to develop new skills and knowledge that they can apply to their own lives and careers.
• Enhanced collaboration: Mastermind classes encourage participants to collaborate on projects and ideas. This can help them develop stronger teamwork skills and build relationships with other professionals.
• Increased motivation: Being part of a mastermind class can help participants stay motivated and focused on their goals. Knowing that they have a group of people who are supporting them and holding them accountable can make a big difference in their ability to achieve their goals.

If you are looking for a way to learn and grow in a supportive and collaborative environment, a mastermind class might be a good option for you.

How to Find Mastermind Groups

Mastermind groups can be a great way to accelerate your success. They provide support, encouragement, and accountability to help you achieve your goals. If you're interested in joining a mastermind group, there are a few things you can do to find one:

1. Talk to your network. Ask your friends, family, and colleagues if they know of any mastermind groups. You can also reach out to local business organizations or associations and inquire about mastermind groups in your area.
2. Get online. There are a number of online platforms that list mastermind groups. Some popular options include Meetup, MastermindMatch, and Mindmixer. You can also search for mastermind groups on social media platforms like LinkedIn and Facebook.
3. Invest in personal development. Look for retreats and programs that incorporate a mastermind component. You’ll meet people who are committed to challenging and expanding themselves just like you are, and the facilitators will guide you in establishing a well-structured mastermind. This is how one of our team members wound up in her masterminds, which we share more about below.
4. Aim high. When you're looking for a mastermind group, it's important to find one that's a good fit for you. Consider your goals, your level of experience, and your personality. You want to find a group that will challenge you and support you on your journey.

Mastermind groups can be a powerful tool for personal and professional growth. If you're looking for a way to accelerate your success, I encourage you to find a mastermind group today.

Case Study: Our Editor’s Mastermind Experience

One of our editors, Linsey Stevens, has been masterminding for over seven years and has been working with the same group of mastermind partners—all small business owners—since October 2020.

She was introduced to Think and Grow Rich by her father, a Boeing missile defense site manager, when she was a teenager, but didn’t think much of it until her late 20s when the idea of the “master mind” emerged as a central theme in a series of Personal Transformation Intensive (PTI) retreats she’d enrolled for with award-winning author, artist, and psychotherapist Erick French.

Group members were required to find a mastermind group and participate in a weekly or biweekly mastermind meeting with other members of the PTI for the duration of the five-month program.

Initially, the mastermind group definition threw Linsey a little. She admits that committing to a very specific meeting structure, reading from Hill’s text aloud with the whole group, and working with specific accountability structures “felt a little culty.” As a definite introvert, she was also unsure about whether she could have fruitful discussions with people she’d just started getting to know over a long weekend.

Despite her hesitation, Linsey’s first mastermind wound up being a success that lasted the duration of the PTI and actually continued on for a whole year.

Since then, she’s participated in a group that formed during PTI 2 (another five-month series of retreats open to PTI 1 grads), a Wellness Institute Internship mastermind, and now, her own mastermind comprised of three women business owners with different PTI and Wellness Institute experience.

Linsey’s Top Mastermind Wins

Linsey credits committing to her own group masterminding experiences with

• Working her way up in her editing career, from accepting a junior editor role (she was a career changer) to earning her target salary as a full-time managing editor
• Meeting health and wellness goals
• Joining an invitation-only volunteer board and cochairing (so far) two multiday conferences
• Doubling her freelancing hourly rate, taking her private editing business from a side hustle to her primary gig, and leaving her 9-to-5 behind

Mastermind Groups, Creative Ideas—Linsey’s Masterminding Nonnegotiables

In Linsey’s seven years of masterminding experience, she’s arrived at some nonnegotiables she shared with us.

1. The Magic Number: Linsey won’t participate in a mastermind with fewer than three members, and she considers three the ideal number. If someone misses occasionally, a 1:1 meeting of the other two members is fine, but too many 1:1 meetings, and they’ll start to feel like chats. She suggests the best take on Napoleon Hill’s call for “two or more people” is actually exactly three.
   Four members can feel like too many. One of her masterminds initially had four people, but when one of them dropped out of the internship program they connected through, and the others agreed that they needed to proceed without that member.
2. Definite Purpose: If you’re masterminding to augment participation in a specific program, everyone needs to be participating fully in that program. If you’re forming a business mastermind, everyone needs to be a business owner—or at least be actively working on a business idea. If the mastermind is for personal growth, all members should be involved in personal development activities beyond the mastermind so they bring something to the table.
3. Biweekly Meetings: Some masterminds meet weekly. That hasn’t worked well for Linsey or the other group members she’s masterminded with, given their busy schedules. Instead, they’ve met biweekly.
   She’s found that monthly meetings aren’t a good fit as too much happens in between, and meetings turn into catch-ups and tend to stray from the agenda.
4. Confidentiality: Whatever members share—whether it’s financial or personal life struggles, business setbacks, wins, or beyond—members agree that the topics covered and details shared during any mastermind meeting are confidential unless someone gives their express permission to share with others.
5. Ideal Members: No one person has all the answers to your life and business questions, but you should have confidence that the other members in your group have the temperament and experience to contribute to your growth, especially if you are considering how to run peer led mastermind groups like Linsey has participated in.
   When she formed her first mastermind, the group collectively declined to accept a fourth member who was shopping for a home group because it was unclear how they would contribute.
   Ask questions, go with your gut, and be selective. If you want to facilitate mastermind groups that will last, saying “yes” to avoid hurting someone’s feelings is a no to winning agendas in the weeks, months, and possibly years to come.
6. The Agenda Belongs to Everyone: An enduring group makes time for everyone. The agenda should be agreed upon by all group members and be predictable each time. Linsey’s current mastermind opens and closes with readings written specifically for the group. They do timed shares with no cross-talk, give feedback, and read through a series of Napoleon Hill’s steps for success, which she prefers to read exactly as they were originally written as she believes they contribute to the very “invisible intangible force” Hill refers to in Think and Grow Rich.
7. In-Person or Online: Linsey’s first two groups met in person. Her current group uses video conference, and she loves that it means the mastermind can include a member who’s on Vancouver Island while the other two are in the Midwestern U.S. She’s also found that video conference leads to more focused meetings than she’s had at coffee shops, where there are inevitably distractions (like another cup of coffee!).

Think you (and your business!) could benefit from masterminding or mastermind coaching? Read on for the best mastermind groups for business owners, based on our research.

Best Mastermind Groups for Entrepreneurs

The following list of business masterminds is considered the best because they are limited in scope, have longevity, and have proven success records. Anyone can start a mastermind group, but a great mastermind group enhances the results of other business owners by sharing ideas.

When you combine small groups with peer support and a highly successful entrepreneur sharing knowledge, inevitably you should expect to pay more.

We realize that many UpFlip readers may find these groups out of their current budget (many are out of my budget, too). We strongly recommend following these thought leaders on social media, joining any free Facebook groups they offer, and building to where you can afford the benefits of mastermind groups, whether it’s one of these or another offering.

GrowthMentor Mastermind Groups

• Price: $49, $99, $249
• Mastermind Groups: 25 City Squads with up to 75 members each
• Mentorships: 1-hour call for entry-level plan, unlimited for others
• Members: 600+

GrowthMentor is a website that offers three tiers of mentorship and local mastermind groups. The pricing starts at $49 per month and goes up from there. The unlimited calls for $99 is by far the best value.

Note that the calls are 1:1 with expert mentors, whereas the City Squads you can attend in person are GrowthMentor’s answer to masterminding. They also host Slack groups you can participate in between meetings. 

Entrepreneurs’ Organization (EO)

• Price: Accelerator is $1,750—otherwise undisclosed
• Mastermind Groups: 60 chapters in 17 time zones
• Mentorships: Yes
• Members: 2,375

The Entrepreneurs’ Organization provides peer groups and a year-long accelerator program. This organization dates back to 1988, so there are decades of experience among these group members.

Eccountability

• Price: Undisclosed
• Mastermind Groups: 17 “tribes”
• Mentorships: N/A
• Members: Undisclosed

Eccountability lists 17 mastermind tribes that are specialized for accountants, business authors and coaches, consultants, podcasters, marketers, real estate agents, cryptocurrency experts, and more.

Business Network International (BNI)

• Price: Free
• Mastermind Groups: 10,900 local chapters
• Mentorships: Based on your ability to network
• Members: 318K

You have to attend a local BNI mastermind group, then go through an interview and reference check to see if you are eligible to join a local chapter. There are also options for members to start a mastermind group.

Dan Sullivan Strategic Coach

• Price: $12,500
• Mastermind Groups: Hosted online, and in the U.S., Canada, and the United Kingdom
• Mentorships: 2-year membership with an invite-only additional 2 years
• Members: Undisclosed

The Strategic Coach offers a mastermind group that lasts for years. The first year is focused on developing your time management and vision, then the second year focuses on creating and innovating. If you’re invited, year three focuses on building business culture and preparing for growth.

Those who rock the first three years can enter the 10x Ambition Group. If you excel in the 10X Ambition Group, you may be invited into the exclusive The Free Zone Frontier hosted by Dan Sullivan, a leadership coach with over 40 years of experience.

Vistage

• Price: Undisclosed
• Mastermind Groups: 7 different mastermind group offerings
• Mentorships: Check for executive coaching opportunities in your area
• Members: 45,000

Vistage is an organization that leverages mastermind principles and has a diverse array of offerings. It has been around for over 65 years and reports that its members improved their incomes by 4.6% in 2020, while most businesses saw a revenue decline of 4.7%.

In addition to their mastermind groups, they have local executive coaching opportunities, too.

Bright Strategy + Solutions

• Price: $500 per session or $750/month with a 3-month minimum
• Mastermind Groups: 7- to 10-member mastermind groups
• Mentorships: 2- to 5-hour sessions
• Members: Undisclosed

Bright Strategy +Solutions offers a general interest mastermind, a leadership group, a women in business group, and a new business and entrepreneur group.

The general interest mastermind is a one-time, five-hour session for $500, while the leadership group is $750 for two hours per month with a three-month minimum. 

The other two groups involve three-hour monthly sessions for $750 per month with a three-month minimum.

John Carlton Coaching’s Platinum Mastermind

• Price: Undisclosed
• Mastermind Groups: 2-day marketing mastermind group
• Mentorships: $1,500 phone consultations
• Members: 12 per meeting

The Platinum Mastermind is a two-day marketing mastermind group that focuses on solving your biggest marketing problems. You’ll gain tremendous insights, but prospective participants are screened by phone call, and only 12 are selected to participate.

Lewis Howes Summit of Greatness

• Price: TBD
• Mastermind Groups: 2-day conference
• Mentorships: No
• Members: No

The Summit of Greatness replaced Lewis Howes’ previous mastermind group. This is the first year he is hosting it. Given the summit is not until September 2024, the pricing has not been disclosed yet.

Russell Brunson’s Inner Circle

• Price: $50K, $150K, or $250K
• Mastermind Groups: 3 levels based on income thresholds ($1M, $10M, $25M)
• Mentorships: Monthly calls
• Members: 100, 14, or 6 per mastermind group

Russel Brunson’s Inner Circle mastermind groups offer access to supportive colleagues at the same level of success you have reached. Before you can join the mastermind program, you have to have made more than $1M in ClickFunnels. This is for the most elite entrepreneurs given the specific barriers to entry and the membership fees.

Young President’s Organization (YPO)

• Price: $49, $99, $249
• Mastermind Groups: Local and global networking groups
• Mentorships: Yes
• Members: 34,000

A YPO group member has to be under 45, have reached certain positions, have more than 50 employees (or 25 employees with more than $2.5M in compensation), and at least $12 million in revenue. Get accepted, and you’ll have access to dozens of ways to connect and benefit from high-level mentorship.

Joe Polish’s Genius Network

• Price: $35K, +$15K, +$20K, for a total of $70K
• Mastermind Groups: Undisclosed
• Mentorships: I hope so.
• Members: Unknown

Joe Polish’s Genius Network focuses on more than just marketing. If focuses on changing your personal life and creating success. A person’s participation starts with a $35K-per-year fee, then you can go to conferences for $15K and purchase a Genius Network membership for $20K.

Indie Brand Builder

• Price: Free newsletter
• Mastermind Groups: Mastermind group currently has a waitlist
• Mentorships: Yes, SEO consulting
• Members: 1,250 newsletter recipients

This mastermind group is focused on digital marketing and SEO for entrepreneurs, but there is a waitlist to join. Think a spot could be right for you? Check out Indie Brand Builder today.

More Tips for Finding a Mastermind Group

• Be clear about your goals. What do you want to achieve through your participation in a mastermind group? Having a clear sense of your goals will help you find a group that's aligned with your interests.
• Be open to feedback. Mastermind groups are a great way to get feedback on your work and ideas. Be open to receiving feedback from your peers, and use it to improve your performance.
• Be a contributor. Mastermind groups are a two-way street. Be willing to share your ideas and experiences with the group, and be supportive of your peers.
• Be patient. It takes time to build relationships and trust within a mastermind group. Don't get discouraged if you don't see results immediately. Keep showing up and contributing to the group, and you'll eventually start to see the benefits.
• Know that you may not have to pay ongoing fees. A lot of big-name mastermind groups involve membership and per-meeting fees, but if you form your own mastermind or join one as part of a retreat or training, you may be able to agree to share your time with one another at no ongoing cost.

Who Are Your Ideal Mastermind Group Members?

When you get in a mastermind group, you’ll be focused on improving both your personal and professional life. There may be a mastermind group facilitator, then you and your fellow group members will wind up doing the bulk of the group coaching.

You’ll also normally have a forum, Facebook networking group, Slack channel, or good old-fashioned email thread where all the mastermind members will interact as a peer group between meetings.

Who would you love to join on a mastermind call, and if you mastermind now, what are your top takeaways?