Investing in a Restaurant or Cafe: 5 Things to Remember

Restaurant businesses have a tremendous influence on the economy in the United States. Sales are expected to total over $700 billion by the end of 2015, according to the National Restaurant Associations. 

It is very difficult for entrepreneurship success without a detailed business plan and research on the market. There are five things future entrepreneurs and investors should consider before investing in a restaurant or café.

The Market of Restaurant or Café Industry

Potential business owners should perform market research and study the trend of the industry. When performing restaurant market research, include statistics, possible geographical locations, and trends. This information is very important and should be included in business plans for prospective investors and financial institutions.

Type of Funding to Operate Hospitality Business

Entrepreneurs fund restaurants and cafes with their own capital or through angel investments. After an entrepreneur has researched the industry, create a budget that covers startup, overhead, administrative, and operational costs. 

While there are successful restaurants, some businesses fail because of lack of research and budgeting. The budget should include a cost analysis of food items and supplies, such as breads, meats, condiments, plates, and utensils. It should also contain a list of distributors, like Klosterman Baking Company who delivers fresh bread items, for an example.

Restaurant or Café Business Structure

Future restaurant business owners have to decide the structure of establishments, including operations. The restaurant or café may be registered as sole proprietor, Limited Liability Company, or corporation. Most fast food, upscale, and casual dining restaurants hire managers, assistant managers, chefs, waiters, and other employees. The information about the business structure is essential for the business plan and budget.

Latest Restaurant Technology

Today, technology is used in the restaurant industry for customers' convenience, online menu viewing, and online order processing. Approximately 70 percent of consumers in the United States use iPhones and other smartphones to view menus on restaurants' websites. 

Amazingly, 79 percent of consumers said restaurant technology improved convenience experience.

Possible Risk

The possible risk of investing in restaurant or café is losing capital because of mismanagement, inexperience employees, and poor service. A detailed business plan and budget should be created and followed to reduce the risks involved in running any type of company.

If future restaurant entrepreneurs want their businesses to be successful, remember to research the industry, funding alternatives, business structure, technology, and risks. Create a business plan and include marketing strategies and budget. 

Also, remember to select reputable distributors and suppliers who deliver fresh food items and quality products.

How to Prepare Yourself Financially When Filing for Disability

Accidents happen every day to people who are sometimes doing nothing wrong. They happen on the job, in school, and at places of business. Sometimes accidents occur in the comforts of one’s vehicle. 

Preparing for a disability from an accident is difficult since no one ever knows when one will occur. However, the average consumer can do the following five things to save money while he or she is applying for disability:

Deposit a Portion of Work Checks into an Interest-Bearing Savings Account

Always be actively putting money from each of your paychecks in to savings. Try to always put at least 10 percent away from each check. If you feel the need to put more than 10 percent then feel free to put away more. 

One thing that a person can do to save money is to place some of the funds into an interest-bearing savings account. An interest-bearing savings account will provide a small return at the end of the year. 

Bottom line, the more you have in savings the more you will be able to get back from interest and the more you have in savings the more money you will have to withstand difficult times, especially if you have to go out on disability.

Have a Sale

A yard sale or an online auction can help a family to get rid of items that are just collecting dust in the home. The sale can create a cushion of funds for the person who is applying for disability, as well. 

Both types of sales are easy to conduct, and they don’t cost much money. The Internet sale costs only a portion of the auction’s ending proceeds. The yard sale costs nothing other than your personal time to conduct. This is also a great opportunity to get rid of any unwanted or unused items.

Cut Some of the Bills

One can try to prepare financially by cutting some of the unnecessary bills in the household. For example, most people don’t need all the premium channels on the cable bill or the features on the phone bill. 

A disabled person can start by cutting those bills down to a minimum. The consumer can try some changes in the automobile insurance, as well. Basically if you don’t need it and can do without it, it might be a good idea to get rid of it. Any unnecessary expenses that can be cut will help you and anyone in your family survive financially in the event that someone in your family has to file for disability. 

After all, it is better to make sure the lights stay on and food is on the table than it is to be paying for things like Netflix or any other guilty pleasures that you might have.

Conduct Some Work-From-Home Activities

A person can save money while waiting for disability by performing work-from-home activities. The amount of work that the person does will depend on his or her level of functionality. 

Examples of work-from-home opportunities are affiliate marketing, writing, web design, software engineering, customer service and more. Many jobs are available for people who want to make money while they are out of work. 

Save the Number to a Reliable Attorney

Finally, the disabled person should have the number to a reliable personal injury attorney. An accident can sometimes qualify as a personal injury if someone else is at fault for it. 

For example, auto accidents can occur because of distracted driving, which is an illegal offense. An attorney such as someone from Arrington Schelin & Munsey PC. can help sort through the mess.

Residents do not have to get caught out there with no financial cushion. The previously mentioned tips can help such a person to prepare for the worst.

Millennials Concerned with the Rising Costs of College are Making Better Choices - Infographic

The latest undergrads are running into way more debt than ever before, in fact record setting debt, as reported from new research of over 400 students across the United States surveyed by CreditSesame.

While the price of school continues to go through the roof the Millennials, those born between 1981 and 2004, are still enthusiastic about going to college and believe it will bring more benefits than ever when compared to Gen X that were interviewed. 

The primary difference between the Millennials and Gen X is with how much attention the newest undergraduates are picking their degree and exactly how much it helps them build a solid career future.

The following is a detailed overview of the survey:

• Wages: We found that greater than 10% of Millennial families made over $150k annually while just 3% of Gen X families met that same mark. Next up, over 25% of Millennial parents reached $110k annually whereas only 4% of Gen X met that level. On the lower side of the scale you'll find only 16% of Millennial families earning below $32k per year but one-third of Gen X parents making that income.
• The Pay: Over 25% of Millennials went to a college where the tuition ended up being $25k or more, as compared to just 6% of Gen X. By contrast, one half of Gen X spent less than $10k a year for college, whereas just 27% of Millennials spent below that amount.
• Salary for Knowledge: Our data also showed the importance of income when it came to deciding what major to go into, and it was drastically different for the two generations. For Millennials an astounding 33% asserted that their salary had a large influence on their decision, however only 14% of Gen X concurred that income was a major deciding factor.
• What is Your Honest Opinion?: When asked if higher education will be worth the price tag, 76% of Millennials said yes, but only 68% of Gen X agreed.

Edvisors states the class of 2015 is probably the most debt stricken class in American history and yet Millennials continue to defend higher education. With good reason that is, given that “Americans with 4-year university degrees made 98% more an hour on average in 2013 than people without a degree,” as per a study of Labor Department data from the Economic Policy Institute. But that doesn’t help make the student debt any less overwhelming.

Fortunately, school loans do not have to control the way you live. Here are some of the ways you can maintain management over your student loan debt:

• Manage Your Loans - Routinely managing your current loans and decreasing them anytime you can isn't only a wise short-term choice, it can also benefit your financial position long-term
• The Help - Find personalized assessment and payment alternatives from organizations such as Credit Sesame
• Be Wary: Interest - By paying more than your monthly minimum every month, or whenever possible, you could lower the interest rate you'll have to pay back. It may well seem like common sense advice, however it is hardly ever heeded with extra income which generally ends up in recreational expenditures
• Consult Your Loan Provider - For anyone who is having issues paying back those student loans, one of your best solutions is to get hold of your loan provider to see about possibly deferring a few of the installments or even decreasing them 

Although the cost of post-secondary education was drastically cheaper for Gen X, the possibilities it exposed to those born within that age group were nothing similar to those of today. 

Presently, a large number of Millennials are selecting universities and majors that may mirror rewarding professions both straight out of university as well as in the future. Even though loans for the new age group of students are not altogether avoidable, it doesn't need to control their way of life. 

With careful planning to take measures to handle debt while in school and after graduation you'll be able to substantially lessen the amount you owe and place yourself in a secure financial situation heading forward.

Home Buyer Don'ts: Six Financial Mistakes To Avoid

Buying a home is always an exciting process. In today's economy where property prices are climbing to millionaire's club territory, just being able to shop for one comes as a great milestone. 

On the same note, however, home buyers must remain vigilant when shopping for properties to avoid the common financial landmines present in this particular venture. Below are six financial mistakes to avoid. 

Maxing Out Your Mortgage

Most inexperienced home buyers make the critical mistake of maxing out the mortgage amount they receive from the bank or a private lender. 

The size of the mortgage you are eligible to receive from your lender will vary based on several factors including average cost of real estate in the area and the borrower's credit score.

Not Paying Attention To Credit Score

Perhaps the single most influential factor that determines your eligibility for a mortgage is your credit score. Sadly, a lot of people neglect to even check their credit score until their lender asks them about it. 

Your credit score impacts your mortgage's interest rates, which could mean hundreds if not thousands of dollars throughout the mortgage's lifespan.

Disregarding Pre-Approval On Your Mortgage

Getting pre-approved and pre-qualified are two entirely different things. A pre-qualification letter almost comes as a courtesy of banks to their valued customers. On the other hand, a pre-approval letter denotes a higher chance of getting the mortgage amount you asked from the bank. It gives real estate agents and property owners more confidence that you will actually be able to close the deal.

Not Consulting Specialists

In an attempt to save some money, some home buyers skip the services of a professional. Consulting these mortgage experts can give you key information regarding current home mortgage rates in the area and actual properties that they may be interested in. 

Most consultation firms can also give you a complimentary pre-approval letter for future property investments. Be sure to work with experts like those at the Premium Mortgage Corp for the best results.

Ignoring Money-Saving Techniques

In the heat of the moment, most home buyers forget to consider the long-term horizon. This results in getting the wrong type of property at a higher premium. Perhaps there are more affordable digs where you could just add amenities for far fewer Benjamin’s.

Focusing On Cheap Neighborhoods

Neighborhood with cheap housing can be an attractive option for home buyers on a budget. 

However, it can be a liability to purchase real estate within these neighborhoods as crime rates increase and people start leaving the area. The resale value will also likely sum up to a loss on your part.

There are many more financial mistakes home buyers are guilty of doing, but the six common mistakes above should be enough for you to avoid getting slapped by rejection letters on your mortgage applications or paying ridiculous interest rates that can easily send you in bankruptcy.