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
Or start smaller: the food truck route
A truck or trailer runs $50,000 to $150,000 all-in and answers the scariest question before you sign a five-year lease. Will people pay for my food?
- Same food safety rules, smaller kitchen: you still need a license and usually a commissary
- Follow the festivals and office parks for a year; your sales data becomes your business plan
- The truck keeps earning as a catering arm after the restaurant opens
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.
Should I buy an existing restaurant instead of building?
Buying a running restaurant gets you equipment, permits and sometimes staff, weeks instead of months. But you inherit the lease, the reputation and whatever made the last owner quit.
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.