Joe Lennon FCCA explains that if the financials aren't your area of strength then you may need professional help.
One of the biggest changes in the labour market over the last 10 years has been the growth in the number of people starting their own business. Nowhere has this growth been more apparent than in the hospitality industry, most notably in restaurants.
New entrants and the skills of entrepreneurs
A study of who these new entrants are is interesting with recent migrants to the UK, college leavers, and chefs featuring predominantly. However, these 3 groups have several common features. Many have great energy, a love of food, and a desire to be their own boss.
Their issue is they may lack business experience and in particular financial skills. Running a successful restaurant, and avoiding the common errors, is just as much about the core business skills as it is a passion for food and delivering excellent service. Hence the question, how to manage restaurant accounts?
The need for an advisor
This is where having an accounting firm and advisor to hand can be such a help for new entrants to the sector. In the early years of the business, technical help with the following among others is essential to survival:
Having a small firm of advisors available in this capacity is akin to your own fully qualified Finance Director, but only when you need it. The reality is few businesses can afford a full time finance executive in their early years, unfortunately this is exactly when one is required.
Why an outsourced FD could be necessary for your new, restaurant business
If you're an early stage business in the hospitality trade and you don't have a financial background then hiring a specialist firm in the trade, will help set your business on a sound footing.
Fail to do so and many of the points mentioned above could spiral out of control with dire consequences. On the other hand, act on this advice and the chances of a bright future could be much improved.
The content of this post is up to date and relevant as at 17/06/2019.
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