Singapore’s economy is vastly growing throughout the year says A1 Business, thanks to the rising number of various business industry. One of the rapidly surging sectors is food and beverage, whether it is a restaurant, cafe, F&B industry, and so on. The growth of this industry is observed to be integral to the increase in others as food and drinks are two big parts of all people’s daily lives, ensuring day-to-day continuity and activities regardless of whatever they do. If you are interested in starting your own business in this sector, there are a number of things you have to prepare, whether it is administrative requirements or business plan you need to come up with to make sure the business runs smoothly.
1. Initial Planning
Planning your restaurant business is very important before you begin taking the next steps. A thorough plan regarding financial projections, budgeting, strategy to compete in the market, pricing, general operation, hiring staffs and deciding on suppliers are to be determined in this step. You will have to be strict with your budget and plan according to it.
2. Raising Capital
Singapore is known to have a high rental rate and labor cost. As a business starter, you will need a large amount of capital for your business. You will have to make sure that you have enough money for capital as well as operating the business itself. Often, money will have to be invested to market the business as this is a very critical necessity to gain more customers. In conclusion, you will have to figure out and calculate carefully where you can earn your capital from. Generally, the cost will range from S$50,000-S$600,000, even more.
3. Company Incorporation
To have your business legally approved, company registration in Singapore must be done. For foreigners, take steps for an application of Entrepass with the Ministry of Manpower to earn a SingPass. For Singaporeans who already have a SingPass, you may register with Accounting and Corporate Regulatory Authority (ACRA) through the BizFile.
4. Establishing a Business Location
Using the help of multiple real estate agents is advised for this step as they will help you find location quick and easy. You will have to decide on a location according to your budget and other consideration such as building size and electrical requirement.
5. Building and Designing the Restaurant
Once you’ve acquired your desired establishment, it is important to polish the place according to match the cuisine you are about to market. You can hire an interior designer, architect, and contractor, even a kitchen planner to help you with creating the ideal restaurant. As always, it’s important to choose a good service at a reasonable price.
6. Getting a License and Certificate
After your company has been registered with ACRA, you will need a license to be approved for business. There are a number of licenses to get depending on the concept of your business. To name a few, there are Food Shop License for food stall, Basic Food Hygiene Course (a certification for food handlers), Liquor License to be approved of selling alcoholic beverages, Importing Foods License, Halal License, Central Provident Fund (CPF), and Government Service Tax (GST) if your company turnover is more than S$1 million per year.
7. Completing Kitchen Equipment and Restaurant Utensils
Depending on what you’re going to serve in your restaurant, there are different kinds of kitchen equipment you can get. Jackie’s or U-Save are the stores where you can get common types of equipment for your business. A lot of restauranteurs get their restaurant utensils from Sia Huat and Lau Choy Seng as they will get you a 20% discount upon verification that you’re in the F&B business and confirming your name card.
8. Staff Hiring
You will need to advertise your job vacancies through either local newspaper or online job seeking platforms. The latter is more preferable as it costs less than newspaper advertisements. A thorough interview of the applicants must be conducted. You will want someone with the right qualifications and skills as well as generally a good nature because certain positive traits are difficult to train. Some use headhunting method from other existing F&B establishments.
9. Executing Marketing Plan
In the first step, you have established a plan to run and market your business. Now once you have completed the rest of the steps of building your business, you must start earning customers by marketing your restaurant. Your marketing plan needs to be able to gain awareness of people and allow them a trial purchase. You must also get them to come again for another purchase. Referrals and word of mouth spreading may be beneficial in garnering more public attention.
10. Food and Beverages Consultation
Consultation is essential if you have no knowledge or experience in starting an F&B business. You can get a chef consultant to advise you on cooking and or an F&B marketing specialist to market your business and get your customers in, or other consultants necessary. Getting a consultant may cost a lot, but it will most likely save you from vain decisions and expenses.