Start a japanese steakhouse business by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your japanese steakhouse business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Check out our How to Start a Business page.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a japanese steakhouse business?
Your start-up cost will depend on your location. If you are going to lease, the cost will be lower. If you want to buy the property, your cost is going to be higher. It also depends on if you are buying an existing building or building something new. If you start from scratch, it could cost you close to $300,000 to open your Japanese Steakhouse. You do not want to forget about licenses, insurance, and permits. You will need to hire staff and purchase food.
What are the ongoing expenses for a japanese steakhouse business?
Your ongoing expenses will differ based on the size of your restaurant. You are going to have to pay for utilities, food, and employees. That will most likely cost an average of $20,000 per month. Then you have insurance and lease or loan payments to consider.
Who is the target market?
While this may be an obvious target market, it does not make it any less true. Your target market is those that love sushi and Japanese cuisine.
How does a japanese steakhouse business make money?
A restaurant makes money by charging customers for the food you prepare and serve to them. The menu may vary along with the price you charge per item. You can also make money by selling alcohol.
How much can you charge customers?
The prices of your dishes are going to vary. You can expect the price of a sushi roll to range from $6 to $13. Steak prices vary based on the type of steak, but they can start around $18 and go up to $60 from there. Alcohol also varies based on drink and brand of alcohol, but you can expect drink prices to start around $5.
How much profit can a japanese steakhouse business make?
The average profit of a restaurant is about $80,000. Your restaurant can have a higher profit based on how many customers you serve and the options you offer.
How can you make your business more profitable?
A great way to make your business more profitable is to update your menu options. You can create a seasonal menu and signature dishes. You can also throw parties or host special events throughout the year. You can also offer pickup orders or curbside to go orders. You can also partner with delivery services to expand your customer base.
What will you name your business?
Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your japanese steakhouse business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
How to promote & market a japanese steakhouse business
You want to market yourself as much as you can on social media. You want to get yourself on all social media platforms. Create a professional website. When customers are looking for restaurants, they want to see a website with a menu listed. You should list your location and hours on your site.
How to keep customers coming back
The best way to retain customers is with the quality of food and service. You should get local ingredients, if possible, to connect your restaurant with the community. Use apps like Open Table to allow people to make reservations. You can create some type of loyalty program for customers to encourage them to come back.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start A Japanese Steakhouse Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
This business is ideal for someone that enjoys steak and sushi. It may also be ideal for someone with restaurant management experience. You do not have to have this experience, but it can be helpful for you to run your business.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a japanese steakhouse business?
Regardless of the type of food your restaurant sells, they all have some of the same basic daily activities. You will spend your day ordering food, receiving food, and preparing it. You will manage your employees, serve your customers, and ensure your restaurant is clean. You will spend time paying bills and marketing your business.
What are some skills and experiences that will help you build a successful japanese steakhouse business?
While you do not need to be skilled at preparing the specific type of food for your restaurant, you should be skilled at hiring the right people. You want to create an authentic environment, so you should have some knowledge of Japanese culture.
What is the growth potential for a japanese steakhouse business?
The growth for restaurants, no matter the type, is modest. It is most likely to hold steady for another year or so and then may improve. There has been an increased appetite for steakhouses and sushi restaurants.
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a japanese steakhouse business?
You want to hire the best chef(s) you can find and afford. The food you serve will create your reputation. Your sushi chef is important, especially if you have a sushi bar. The sushi chef will be who your customers see the entire time they are in your restaurant. You want to make sure your restaurant is in a good location, one that is easy to access. You want to make your restaurant stand out from any competition you have in the area.
How and when to build a team
You are going to need to build a team before you open the doors to your restaurant. You are going to have to have a full team to operate this business.