Want to go into 2024 with new business growth strategies to help you succeed?

We’ll discuss strategies that can help you improve your small business revenue and profit. We’ve taken advice from thousands of small business owners and provided seven actionable steps to grow your business before the year ends.

We’ll discuss why you need a business growth strategy, seven strategies to consider, how to implement the business growth strategies, and how to monitor the results of your business growth initiatives.

[su_note note_color="#dbeafc"]
By the end of this article, you’ll have the inspiration you need to make the most of Q4 and lead your business into the new year with confidence. Click on any of the links below to jump ahead.

• Why you need a business growth strategy
• Growth strategies to consider
• How to implement a business growth strategy
• How to measure business growth
• What are your favorite business growth strategies?[/su_note]

Why you need a business growth strategy

Every small business should have strategies for business growth. As famed business coach Tony Robbins says, “If you are not growing, you are dying.”

Company growth strategies will help you create strategic growth opportunities.

The best growth strategies are the ones that expand your revenue with little to no increase in your marketing or sales budget besides a potentially one-time expense.

Growth strategies to consider

Business expansion requires a variety of strategies to both find new potential customers and build better relationships with existing customers. Top strategies that business owners suggest (and that we get behind enthusiastically) include:

1. Automate your business processes.
2. Personalize marketing strategies.
3. Reward customer loyalty.
4. Cut spending on underperforming strategies.
5. Prepare customers for upcoming price increases.
6. Offer holiday discounts.
7. Celebrate your wins.

Automate your business processes

All growth strategies should consider how you will implement automation within your business. Successful companies across every industry recommend using automation for repetitive tasks like emails, review requests, lead generation, and more.

With tools like ChatGPT and other AI software, automation will become an even bigger part of strategic growth initiatives.

Neel Parekh started MaidThis and explained how he used the automation growth strategy to help with market expansion that earns the remote cleaning business $1.5 million a year.

We use an automated five-step recruiting process. That includes:

• Initial screening call that asks questions like do they have business insurance and licenses.
• Then we conduct a second Zoom call to see if they show up and how they interact.
• Send them on a test job.
• Officially onboard.
• Monitor what they do.

https://youtu.be/kVyLriqFVdc

Personalize marketing strategies

Small things like including a person's name in an email, sending them a free gift during their birthday month, and other personalized marketing efforts can be automated and provide excellent growth marketing strategies.

Digital marketing offers so many tools for marketing growth strategies that there’s no reason not to include personalization in a marketing strategy. Check out HubSpot’s contextual marketing course to learn how personalized you can make your digital assets.

Craig Watson, the owner of Baked Cravings, explained the key to his growth strategy:

[su_quote]The key to growing [the business] is knowing exactly who you are marketing to.[/su_quote]

Learn more about Baked Cravings in this in-depth interview.

https://www.youtube.com/watch?v=j2_xwBgyFFU

Reward customer loyalty

Another marketing growth strategy small businesses should consider is creating a loyalty program. One of the best ways to grow your business is to increase sales from your existing customer base.

KPMG found that seven factors impact customer loyalty the most. Your loyalty program can help with everything but product quality and consistency.

Consider using a loyalty program as an effective growth strategy for your products or services by offering

• Incentives
• Quick customer service
• Easy returns
• Suggestive selling to your target audience

Check out Referral Rock for reviews of loyalty software to grow your business.

Mike Andes, founder of mega-successful Augusta Lawn Care, talks a lot about how to build your brand to build a loyal customer base. He used Starbucks as a growth strategy example:

[su_quote]Your brand has to constantly evolve, or it dies. If you look at Starbucks, they change all kinds of things: subscriptions, loyalty programs, social initiatives, and other things. All that’s branding.[/su_quote]

Hear more from Mike below.

https://www.youtube.com/watch?v=C8MyjkibCxk

Cut spending on underperforming strategies

Another way to grow your business is to stop wasting money on products or services that aren’t helping you in the existing market. This frees up money for you to spend on your growth strategies, existing products, or services that your target market wants.

You can apply this strategy by looking at keywords with high cost-per-click and low conversion rates and removing them from paid ad campaigns. You might also want to remove products that have been on the shelf for a long time from your inventory.

Afshan Abbas explained

[su_quote]When you’re starting a shoe company, figure out what your niche in that shoe business would be because it’s a very crowded market. And if you are going to do something that other people are doing, it will be a really hard sell.[/su_quote]

https://www.youtube.com/watch?v=Z1Iz4tTVrZE

Prepare customers for upcoming price increases

Another growth strategy that can work remarkably well is notifying customers about upcoming price increases to existing products or services.

Given many small businesses raise their prices near the beginning of the year, you can encourage people to book and pay for your services (or purchase products) before the price change so they get the current pricing.

Your customers save money, and it helps you meet your goals in your business growth plan. Best of all, this business growth strategy costs you barely anything.

Big Frog franchise owner Sanford Booth uses a similar growth strategy when he hits slow times:

[su_quote]When I hit slow times, I reach out to previous customers and see if they need anything. The follow-up will often help me make it through tougher times.[/su_quote]

Check out our interview with him below.

https://www.youtube.com/watch?v=WubF7nOQdME

Offer holiday discounts

As you enter the fall and winter months, you can use discounts as a growth strategy. Help your business grow by increasing sales during commonly slower months. This is especially effective if you own a service business that can offer to help with the challenges people face when they have family come into town.

You might also tap into untapped markets. For instance, Jackson Blackburn runs a window-washing business that makes around $100K monthly. He offers Christmas light installation during the winter months to level out some of the seasonal fluctuations.

Check out our interview with him below.

https://www.youtube.com/watch?v=8gi4-cSRlS0

Celebrate your wins

Business owners want sustainable growth consistently, but sometimes, they forget that a crucial part of the business growth is the employees who work with them.

Whether you are a solopreneur or leading a small business that has sustained growth for decades, take the time to celebrate when you meet growth strategy goals, complete a project, or someone has a memorable life event.

A great company culture will refresh you and prepare you to concur new markets or goals. Mike Andes experienced this as he pursued his market expansion strategy and sold more than lawn care franchises. He told us:

[su_quote]When a business grows too fast, it becomes a mess; you’re always playing catch up, you are bringing on more people, and it can cause chaos. This is typically the time when owners give up on small businesses.[/su_quote]

Take the time to celebrate wins before taking on the next leg of your market expansion goals.

Editor’s Pick

We have some fantastic editors at UpFlip who sometimes share their stories about small businesses and strategies that inspire them. Forest & Meadow, an herbal shop, shared the post below to celebrate their team—and it got our editor thinking about which Forest & Meadow teas and tinctures she might want to buy now that it’s getting cold outside.

View this post on Instagram

A post shared by Forest & Meadow Herbal Shop (@forest.and.meadow)

How to implement a business growth strategy

To create a successful growth strategy, you’ll need to:

1. Download a growth strategy template.
2. Identify how you want your company to grow.
3. Perform market research.
4. Define your growth goals.
5. Plan for growth.
6. Get the tools you need for your growth strategy.
7. Execute the growth strategy.

Download a growth strategy template

One of the best ways to start working on a growth strategy is to download a template to help you get started. Download our growth strategy plan template.

Identify how you want your company to grow

In this section, you’ll explain the growth strategy you are trying to achieve. Some standard growth strategies include:

• Market expansion
• Strategic partnerships
• Product expansion
• Acquisition strategy
• Diversification strategy

Market development

A market expansion strategy focuses on entering a new geographic market once you can no longer increase your market presence in your current market. You might also hear this called market development or a market penetration strategy.

This strategy must consider new regulations, cultural differences in the new market, and how currency conversion might impact your company.

Achieving a market penetration strategy will also require comparing the demand and benefits of entering potential markets to decide which new market is right for your company.

Strategic partnerships

Companies form strategic partnerships in numerous ways to increase business growth. They might form a partnership to enter new markets using each other's distribution channels, or they might share valuable insights, internal resources, and technology for new product development.

Product expansion

When a company’s existing products are not creating revenue growth, it might choose to start product development to expand its product line. Using product expansion helps you increase revenue by providing new products to both new and existing customers.

This product-led growth may be costly, depending on the industry. Increasing a product line can cost thousands to millions of dollars through the product development process.

While product expansion can increase returns, you should conduct market research to verify that the current market needs the new product. Otherwise, a significant investment in research and development (R&D) may fail to create the product-led growth you’re after.

Acquisition strategy

Acquiring assets can be a successful form of business growth. You see growth strategy examples using the mergers and acquisitions (M&A) business model in most major corporations.

The higher cost of capital has slowed some growth in business mergers, but industries like healthcare, materials, and energy are still seeing significant market consolidation.

When you buy a company, you get its existing market share, its customers, and industry research, and you may be able to save money by consolidating systems and positions.

This strategy can be a great way of increasing your market share in the same market or entering a new market. You’ll be able to pursue new customer segments, reduce customer acquisition costs, and increase your company’s market share.

That doesn’t mean this strategy is without its problems. While there are plenty of growth examples, everything from paying too much for a company to a lack of synergy and poorly integrating the two companies are risks of an acquisition growth business.

Diversification strategy

Another market growth example is diversifying to increase your total addressable market. There are four primary ways to diversify:

1. Vertical integration: In this scenario, you would buy the market inputs used for your product. For instance, a gas station might buy oil fields, pipelines, refineries, and tankers to deliver the gas.
2. Horizontal integration: A cleaning company might add power washing, window washing, or other cleaning services that service the same market.
3. Concentric diversification: You see market development using this strategy when cell phones and other technology companies upgrade existing products to use new technology.
4. Conglomerate diversification: This involves buying companies in completely unrelated industries. Berkshire Hathaway is the most well-known conglomerate. Finding ways to market to the new audience using this strategy may be challenging.

Perform market research

You’ll want to research how other businesses in your industry are approaching growth, what customers want, and what software and tools are available to pursue your growth strategy.

Pro Tip: Learn more about performing market research.

Define your growth goals

Whichever growth strategy you use, you’ll need to define your goals, the metrics you’ll use, and the level of improvement you’ll need to see to call the strategy a success. We discuss more about key performance indicators in our one-page business plan.

Plan for growth

At this point in the process, you need to detail the exact approach you’ll use to accomplish your growth strategy. You’ll want to define the tasks, time, resources, and parties involved to achieve the market development strategy you’re going to try.

The more detailed you can be in this step, the better. You’ll have a resource for keeping yourself on track and helping others picture how the process will work.

Get the tools you need for your growth strategy

Once you’ve created the plan, it’s time to gather everything and everyone you need to accomplish the task. You might need Zoom or Google Meets communication tools if you are working with remote teams. If you aren’t using one yet, you may want to invest in a CMS for small business, too.

Pro Tip: Make sure to get multiple bids if you are using external service providers.

Execute the growth strategy

The final step is executing the growth strategy and measuring its market penetration. Whether you’re lowering prices or using increased paid advertising, you’ll want to make sure that your business growth strategy is meeting your goals and adjust as you go.

Next, we’ll discuss ways to measure your business growth strategy to understand if it is successful.

How to measure business growth

You’ll need to measure the success of your business growth strategies, and there are numerous ways to measure the growth. Some common ways to measure the success of business growth include:

• Revenue: The easiest and most immediate way to measure the success of any business growth strategy is your revenue growth. You’ll be able to see year-over-year trends quickly if you are keeping records of daily numbers.
• Profit: Profit is another excellent way to identify whether business growth strategies are working. If your gross and net profit is higher, you’re making more money, but it’s even better when your profit margins increase with your revenue.
• Market share: When your business growth strategy includes goals to increase your market penetration, you may not measure pure revenue but the change in your existing market share. This is good when you want to verify that you are growing faster than overall market expansion.
• New customers: Along with measuring your market share, you may also want to measure the number of new customers you’ve attracted since implementing your new strategy.
• Customer lifetime value: Achieving growth from existing customers means you increase sales to the customers you already have. One of the easiest ways to measure increased revenue per customer is by looking at the change in average lifetime customer value.
• Customer retention: Measure customer satisfaction to establish whether you are meeting the expectations of your customer base. You can also use churn rate to measure the amount of your customer base you are losing.
• Team size: A business owner can also measure their growth goals by looking at their team’s size. You might also use revenue per employee to measure whether your growth in revenue is increasing faster than you’re hiring.

What are your favorite business growth strategies?

One of the reasons we love what we do is that we get to learn from hundreds of brilliant and successful people. We have a feeling that’s why you keep coming back, too.

We love hearing about other people succeeding. Share your stories in the comments below. What business growth strategies have you tried, and how did they turn out?

Get ready for the most boring blog you’ve ever read! In just a few minutes’ time, you’ll know a lot more about 17 boring businesses that could bring in serious revenue.

In this post, we’ll discuss an array of boring business ideas and explain how to start or buy them. We’ll also provide some general tips on what to look for when investing in boring businesses.

By the time you finish reading, you’ll know which boring business is right for you, and how to make it profitable.

[su_note note_color="#dbeafc"]
Click on any of the boring links below for more information on the “boring business” model, or just continue reading.

• What are boring businesses?
• Best boring businesses to buy
• How to buy a boring business
• Property management businesses
• More boring business ideas
• ‘Mirror, mirror on the wall, what’s the most boring business of them all?’
• Start your own business [/su_note]

What are boring businesses?

The term “boring business” has become popular because of Codie Sanchez, the owner of the business education service Contrarian Thinking. A major part of her wealth-building strategy is buying boring businesses.

A boring business is defined by four characteristics. It is:

1. Stale: There is little to no disruptive innovation opportunity in the business model, which means you can implement best practices and let the business run with minimal participation.
2. Old: An old business is at least five years old. The older the small business is, the more likely it is to remain successful.
3. Weak: Industries with less competition or lots of dissatisfied customers tend to find it easier to stand out from the pack by simply improving customer service.
4. Simple: You want a small business model that is easy to understand, doesn’t require research and development costs, and has clear opportunities to improve service or technology to improve profit margins.

You might hear this boring business framework called SOWS for short.

Best boring businesses to buy

The industries in this list aren’t the sexiest, but they offer essential services and make a steady income with recurring revenue. Steady income means there aren’t huge fluctuations in cash flow; recurring revenue is achieved by having customers return regularly.

Many have low startup costs and can serve as passive income streams.

The boring business ideas below can help you hit the ground running as a business owner.

1. Laundromats
2. Car washes
3. Vending machines
4. ATMs
5. Franchises
6. Rental properties
7. Home maintenance
8. Office supplies
9. Bookkeeping
10.  Storage units
11.  Landscaping
12.  Shipping centers
13.  Ice vending
14.  Renting your car
15.  Pre-made meals
16.  Petsitting
17.  Waste removal

Keep reading to get the low-down on each boring business.

#1. Laundromats

• Average Annual Revenue: $311,220
• Average Profit Margins: 22.10%
• Startup Cost: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: -0.1%
• Best For: Customer service pros with high attention to detail

Laundromats have recurring revenue and provide a valuable service for the 16% of American households that do not have washers and dryers in their homes.

These small businesses provide a steady income because Americans do an average of eight loads of laundry per week, and laundromats charge $2 to $4 per load.

Laundromats in zip codes below the poverty line will normally have the most profit potential. Cities like New York City, Chicago, and Los Angeles have higher percentages of people without laundry machines in their homes.

#2. Car washes

• Average Annual Revenue: $73,100
• Average Profit Margins: 16.10%
• Startup Cost: $500+
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1%
• Best For: Car enthusiasts and detail-oriented entrepreneurs

A car wash is another boring business with heavy cash flow.

With a quick online search, you can find lots of car washes for sale. Sometimes, you can find them for as low as the cost of the land. From there, you can increase cash flow with simple fixes like adding automation, cashless payments, or even leasing extra space to other businesses.

You’ll also be able to use the land to secure capital through small business loans and grow your business empire faster.

#3. Vending machines

• Average Annual Revenue: $182,100
• Average Profit Margins: 4.30%
• Startup Cost: $2K-$10K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.5%
• Best For: Organized entrepreneurs who like driving, people who want a semi-passive business

Automated vending appears to have a small growth rate and average profit margins. Meanwhile, it’s one of those business opportunities that combines low startup costs and good cash flow, and it gets more profitable as you add more machines to a route.

Just ask vending machine business owner Adam Hill, who makes $700K per year working just two days per week.

https://www.youtube.com/watch?v=-s_Y-O1nosw

Did you enjoy the video? Check out our vending machine business course.

#4. ATMs

• Average Annual Revenue: $182,100
• Average Profit Margins: 4.30%
• Startup Cost: $2K-$10K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.50%
• Best For: Organized entrepreneurs who like driving, people who want a semi-passive business

Another boring business you can start is placing ATMs in other small businesses. Many businesses need ATMs but don’t want to manage them. You’ll make $2 to $5 per transaction, and potentially even more in high-demand areas, like Vegas casinos.

You can manage the services or turn the revenue into 100% passive income by using services like ATM Together, which help (or completely) set up your business.

There are even specialized ATMs like Bitcoin ATMs or Coinstar.

#5. Franchises

• Average Annual Revenue: $621,212
• Average Profit Margins: Varies by industry
• Startup Cost: $1K-$3.5M
• Time to Revenue: 3-18 months
• Annual Market Growth Rate: Varies by industry
• Best For: People who want to skip the trial-and-error phase of small businesses

Companies in several industries offer franchising opportunities, making it easy to start making money as a business owner.

Over 10% of companies are a franchise, and franchises account for 3% of GDP. The McDonald’s down the street, for instance, is likely a franchise, meaning it’s owned and run by an independent franchisee with the company’s permission.

Franchises are boring businesses because the business model's success has already been proven and you can use existing intellectual property and processes in day-to-day operations to make a great living.

If you’re ready to buy a small business, check out our blog on the best franchises to own.

#6. Rental properties

• Average Annual Revenue: $27,375 per home
• Average Profit Margins: -11% to +10%
• Startup Cost: $60K+
• Time to Revenue: 3-12 months
• Annual Market Growth Rate: Fluctuates with tourism and value compared to hotels
• Best For: Recognized real estate professionals or service business owners

Real estate ownership is the number one driver of wealth for most American households. In fact, second homes contribute to wealth creation in 4% to 6% of the population. That makes rental properties a great way to earn more money and develop a steady stream of recurring revenue.

Two particularly successful rental property management strategies include opening Airbnb rentals and buying and leasing quadplexes.

Find out how to turn real estate rentals into a $3M per year business below:

https://www.youtube.com/watch?v=6m-MosXlpOE

#7. Home maintenance services

• Average Annual Revenue: $204,700
• Average Profit Margins: 5.40%
• Startup Cost: $500-$5K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.7%
• Best For: Construction and repair pros, creative problem solvers, outgoing and hands-on entrepreneurs

Providing home maintenance can be a very consistent way to earn money because you’re providing an essential service. It’s also one of the few small businesses in the construction industry that doesn’t require a contractor's license.

Learn how to start a home maintenance service company from a handyman making $250K per year with just two trucks.

https://www.youtube.com/watch?v=leUta_q_MPQ

#8. Office supplies

• Average Annual Revenue: $1.94M
• Average Profit Margins: .9%
• Startup Cost: $100-$5K
• Time to Revenue: 1-3 months
• Annual Market Growth Rate: -2.3%
• Best For: SEO experts and people who are great at finding low-competition keywords

The office supply industry can be risky to invest money in because there is declining demand for many of the products they offer. But there are plenty of ways to get customers, especially if you run an online business.

You can make a steady stream from eCommerce if you offer business supplies with a dropshipping business model. If you have a physical location, you can include services-based offerings, like graphic design, printing, and shipping.

#9. Bookkeeping

• Average Annual Revenue: $1.57M
• Average Profit Margins: 18%
• Startup Cost: $500-$5K
• Time to Revenue: 1-3 months (not including time training as a CPA)
• Annual Market Growth Rate: 1.7%
• Best For: CPAs, finance experts, entrepreneurs with strong math skills

One of the most boring businesses you can conceive of is an accounting or bookkeeping business.

There’s a high demand for these services because 33 million small businesses and 124 million U.S. households need tax advice and other services. You can increase your success by specializing in niche areas, like eCommerce accounting.

Of course, accountants and bookkeepers require specialized education.

#10. Storage units

• Average Annual Revenue: $135,882
• Average Profit Margins: 66.5%
• Startup Cost: $100K-$10 million
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: -1.8%
• Best For: Commercial landowners, remote workers, and people who like having spare time during their day job

When you invest in storage space, most of the cost will be the purchase of the building and any upgrades you do. Many businesses in this industry can be turned into almost entirely passive income sources by adding keypads, automated locks, and online booking.

#11. Landscaping companies

• Average Annual Revenue: $272,790
• Average Profit Margins: 8.7%
• Startup Cost: $1K-$100K
• Time to Revenue: 1-3 months
• Annual Market Growth Rate: 8.1%
• Best For: Gardeners, landscape designers, people who love hands-on, outdoor work

There’s constant demand in this growing market, and there’s also great opportunity.

Most landscaping companies lose 8% to 10% of their customers each year, and their biggest challenge is when people aren’t happy with their services. That makes the industry ripe for businesses that focus on offering clients great customer service. If you can automate the business processes, your revenue could increase even more.

Mike Andes started in landscaping services when he was just a teenager, and today, he’s sold over 133 Augusta Lawn Care Services franchises and has expanded into real estate. Check out our playlist of interviews with Mike Andes below:

https://youtube.com/playlist?list=PLvjTpxNLBJIYQBw3AqsOPGsSpVns5y0fg&si=L8IGshYEucRkyVPh

#12. Cleaning companies

• Average Annual Revenue: $755,180 ($62K for solo)
• Average Profit Margins: 10.8%
• Startup Cost: $1K+
• Time to Revenue: 1-18 months
• Annual Market Growth Rate: 5.1%
• Best For: Friendly professionals with an attention to detail

This boring business idea is in high demand. You can clean homes on a one-time or routine basis, and people pay good money for it.

Before you invest in a cleaning business, review our resources for cleaning businesses that we created with Chris Mondragon. He’s a featured speaker at housecleaning conventions and runs a multi-million-dollar house and Airbnb cleaning service.

https://youtube.com/playlist?list=PLaU6uY9Yy7XmmBfiLC1KpSMZ3-Ms0vGtc&si=nPWJYCdjQOliLu1r

We even have a cleaning business course that promises to help you earn $10K and comes with a 90-day refund policy.

#13. Parking lots

• Average Annual Revenue: $1.47M
• Average Profit Margins: 5% to 10%
• Startup Cost: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 4.3%
• Best For: Landowners in high-traffic areas

Owning parking lots is perfect for people who want to run an automated business or sit outside all day at work.

Many businesses in this industry have lots of land in high-demand areas, like downtown in major cities. They charge by the hour and make money accepting cash and credit cards, so no one is required to be on site.

Parking lot owners commonly have relationships with the local government so law enforcement tickets people who don’t pay to use their parking spaces.

#14. Dry cleaning

• Average Annual Revenue: $265,808
• Average Profit Margins: 22.10%
• Startup Cost: $100K-$3.M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: -6.7%
• Best For: Customer service pros with high attention to detail

Dry cleaning can be decent money, but the industry is in decline with the rise of work-from-home jobs. That just means you have opportunities to buy businesses at a discount.

Many of the dry cleaners for sale online are asking for less than two times the annual cash flow. If you buy them using seller financing with 20% of the money down, you could buy a dry cleaner for as little as $20K now and pay it off over time.

For more on seller financing, check out our guide to buying businesses with little to no money.

You may have difficulty getting loans from traditional lenders when considering this investment because of the industry decline.

#15. Pre-made meals

• Average Annual Revenue: $25.4M
• Average Profit Margins:1%-10%
• Startup Cost: $1K+
• Time to Revenue: 1-18 months
• Annual Market Growth Rate: 7%
• Best For: People who love cooking

Providing customers with pre-proportioned meals is boring because it consists of primarily repetitive tasks and has a low profit margin.

A small business in this industry makes money by cooking food in bulk and breaking it into individual meals. Its clients are mostly busy professionals who want to eat healthier and don’t have time to do their own meal prep.

People can pay by the meal and may get a discount if they return the reusable packaging.

#16. Pet sitting

• Average Annual Revenue: $73,533
• Average Profit Margins: 11.5%
• Startup Cost: $1K-$100K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.1%
• Best For: Pet lovers and experts, salon and grooming professionals, empathetic and detail-oriented entrepreneurs with strong customer service skills

Pet sitting and grooming companies are boring business ideas that can make decent profits. They aren’t high-growth and are labor-intensive, but you get to play with cute dogs and kitties.

Martin Burt and his wife explain how to start a pet sitting business in our definitive guide. We have information on pet boarding, too.

#17. Waste management

• Average Annual Revenue: $8.72M
• Average Profit Margins: 7.29%
• Startup Cost: $1K+
• Time to Revenue: 3-18 months
• Annual Market Growth Rate: 1.9%
• Best For: Customer service pros with high attention to detail

Waste management companies remove junk from sites and take it to the dump. Society’s reliance on them is here to stay.

When you buy a waste removal business, you’ll want one with employees already if you’d like it to be a passive income source. Otherwise, you’ll have to work in the business until the hiring systems, insurance, and payroll are in place.

Learn how Kyle Landwehr started his junk hauling business and turned it into a $3 million per year business.

Next, let’s look at how to buy a business with little money and convert it into a steady stream of revenue.

How to buy a boring business

You can buy many small businesses with less capital than it takes to start a new business, but you’ll need to go through a defined process before you invest. We suggest the following process for buying businesses:

1. Work with business brokers.
2. Identify your goals.
3. Find the right business for sale.
4. Value the business.
5. Negotiate the deal.
6. Close the deal and transition into ownership.

You’ll specifically want to master securing seller financing to achieve the most success when pursuing boring businesses for sale. Again, you can learn about the process in our blog about how to buy a business without money.

Now let’s look at a list of property management businesses that can help you make a great living.

Property management businesses

Real estate and property management businesses are boring businesses that lots of people look to for investment opportunities. Whether you’re just getting started in the real estate investment world or have years in the space, you can make a great living.

You’ll earn cash flow, at least, but you may also earn additional funds from appreciation of assets when you sell them. Check out the list of real estate businesses I love:

• Airbnb rentals
• Apartment buildings
• Car washes
• Farmland
• Mailbox centers
• Mobile home parks
• Property management and repair companies
• Quadplexes
• Rental arbitrage
• RV parks
• Storage space rentals
• Tiny home rentals

The best thing about these boring businesses is you can manage your entire investment portfolio from a single platform and website, which makes it easier to manage multiple businesses as the demand grows.

More boring business ideas

Want more bloody boring business ideas?

Check out the list of 99 more boring businesses below!

Awning installation	Garage door service/installation	On-demand cleanup crews	Surfboard and equipment rentals
Biking tours	General contractor	On-demand holiday decorations	Surveying
Boat repair and maintenance	Gutter cleaning	Online communities	Tree removal
Camping sites	Hiking tours	Outsourced customer service	Tree trimming
Carpentry	Home garage buildout	Painting	Trucking
Carpet cleaning and steaming	Home inspection/thermal imaging for utility analysis	Party rentals	Logistics
Carpet, tile, and flooring installation	Home office buildout	Pest control	Used car lots
Catering	House painting	Pet grooming	Videography
Commercial cleaning	House staging	Photobooth, snapshot, and accessory rental	Warehouse storage rack installation
Commercial power washing and striping	Hunting guides	Photography	Welding
Concrete	HVAC installation and cleaning	Pipefitting	Window cleaning
Custom wallpaper installation	Insulation installation (spray and standard)	Plumbing	Yard contracting, designing
Deckbuilding and staining	Interior design	Podcast production
Door/window installation	Irrigation system installation	Pool/hot tub services
Dumpster rentals	Laundry services	Porta-potty rentals
Electrical	Lighting services	Property manager
Elevator installation and service	Liquidation services	Realtor
Epoxy flooring	Liquor store	Roofing
Epoxy business	Loan officer	RV parks
Equipment operation	Machine servicing	RV services
Equipment rental	Masonry	Scaffolding
Event DJ	Mini-mailbox centers	Septic service/pumping
Event management	Mobile glass repair	Septic tank installation and service
Excavation	Mobile home Parks	Siding
Farmland	Mobile tire sales/service	Sneaker resale
Fence installation	Mold, fire, and water damage remediation	Solar panel installation
Fire sprinkler system installer/detector installation	Moving services	Specialty food trucks
Food tours	Niche class-based gyms	Mobile wine business
Foundation repair	Oil-change centers	Supercar rental

Now you have plenty of boring businesses to consider buying or starting up. They span several industries and skill sets. You might want to start with a business that costs less and build up to more expensive ones as you develop wealth.

‘Mirror, mirror on the wall, what’s the most boring business of them all?’

The Boring Company is the most boring business in all the world. Seriously! 

Maybe not the take on “boring” you expected, but Elon Musk started The Boring Company because he was tired of dealing with traffic.

The Boring Company uses boring machines called Prufrocks to bore tunnels at a rate of one mile per week, but they aim to eventually bore seven times faster than that. The tunnels are used to transport passengers around the Las Vegas Convention Center and to Resorts World in Tesla vehicles. There are other tunnels in the works.

Start your own business

The world is full of opportunities with lots of demand and not a lot of competition. It’s up to you to find the boring businesses that work for your portfolio.

What boring businesses do you find the most appealing for your investment strategy?

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?