Business plan & startup costs
Banks don't fund dreams, they fund spreadsheets. Here is the short version of the plan we would write today, with numbers that survive contact with 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. Lenders read the numbers first and the story second.
Where the money actually goes
Our rule: whatever the contractor quote says, add twenty percent. Old buildings hide surprises. Dead grease traps, underpowered gas lines, hoods that fail inspection. Plan for the surprise and it stops being one.
- Build-out and permits: roughly 40% of the budget
- Kitchen equipment: about 20% (see the equipment guide before you buy new)
- Deposits, licenses and professional fees: around 10%
- Opening inventory, training and soft-opening food: about 10%
- Working capital: the last 20%, and the part that saves you in month three
The ten-page business plan
Keep it tight. A page per topic beats a chapter per topic, and you will actually update it. Write the summary last, when the numbers are real. Keep a one-page version too. A good plan wins leases, not just 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, and 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 on one source. A typical mix: savings, an SBA loan, family, and equipment financing so the cash stays liquid. Community lending circles (hui, kye, paluwagan) opened plenty of restaurants before banks returned our calls. Just put family money in writing. It protects the relationship more than the loan.
- 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, and 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. It often saves real tax money.
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. Plenty of great noodle shops started exactly this way.
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, and the 24-month forecast forces the one conversation that matters: how many covers a day keeps you alive.
Numbers done? Make it legal.
Licenses and permits sink more openings than money does. Get the order right.