Business plan & startup costs
Banks don't fund dreams, they fund spreadsheets. Here is the short plan we would write today, with figures that survive reality.
Quick answer
Most full-service Asian restaurants cost $175,000 to $700,000 to open. Four items eat the budget: build-out, kitchen equipment, deposits, and working capital. Write a ten-page plan, not a forty-page one.
Where the money actually goes
Our rule: add twenty percent to any contractor quote. Old buildings hide surprises. Dead grease traps, underpowered gas lines, hoods that fail inspection.
- Build-out and permits: roughly 40% of the budget
- Kitchen equipment: about 20%
- Deposits, licenses and professional fees: around 10%
- Opening inventory, training and soft-opening food: about 10%
- Working capital: the last 20%, the part that saves you in month three
The ten-page business plan
Keep it tight. A page per topic beats a chapter, and you will update it. Write the summary last, when the numbers are real. A good plan wins leases, not only loans.
- Concept and menu: one page, with photos if you have them
- Neighborhood and customers: who eats here, lunch or dinner, weekday or weekend
- Competition: every Asian restaurant within ten minutes, what you do differently
- Startup budget: the five buckets above, itemized
- 24-month forecast: sales, food cost, labor, rent, month by month
- Funding ask and payback: how much, from whom, repaid by when
- Team: who runs the kitchen, who runs the floor, who does the books
Where the money comes from
Almost nobody opens with one source. A common mix: savings, an SBA loan, family, and equipment financing so the cash stays liquid. Community lending circles opened plenty of restaurants before banks returned our calls. Put family money in writing.
- SBA 7(a) and microloans: the standard route for first-time owners; your bank or SBDC can package it
- Equipment financing keeps $40k+ of cash free for the months that matter
- Family and community: document it like a real loan, because it is one
Forming the company
You can file an LLC yourself with your state for under $200, that is a fine choice. If you would rather not chase paperwork, these three are reliable:
ZenBusiness
EasiestClean process, clear pricing, good reminders for annual filings. The one we point first-timers to.
Visit siteNorthwest Registered Agent
Best privacyKeeps your home address off public records and answers the phone with real people.
Visit siteLegalZoom
Best knownThe household name. Costs a little more, but the add-on legal help can be worth it if your ownership setup is complicated.
Visit siteAn LLC fits most independent restaurants. Once profits are steady, ask a CPA about S-corp election.
Common questions
Can I open an Asian restaurant with $100,000?
Yes, if you stay counter-service and take over a former restaurant space with the hood and grease trap already in place. Small menu, used equipment, no liquor.
Do I need a business plan if I'm not borrowing money?
A short one, yes. Landlords ask for it, partners argue less when it exists, the 24-month forecast forces the one conversation that matters: how many covers a day keeps you alive.
What startup costs do people forget?
The quiet ones: utility deposits, insurance down payments, hood cleaning contracts, POS hardware, initial pest control, signage permits, three months of 'friends and family eat free' during training. Together they run $15,000 to $30,000.
Numbers done? Make it legal.
Licenses and permits sink more openings than money does. Get the order right.