Small and medium-sized business owners who start restaurants such as restaurants and snack bars rarely plan and follow procedures through long-term preparations, and most of them quit their jobs suddenly or have problems with their existing businesses.
As a result, incomplete elements occur here and there from the process of preparing for a start-up, and there are many cases of start-ups with risks at risk. Today, we will look into the preparation procedures for starting a restaurant business in the hope that this risk will be reduced a little.

Restaurant

A restaurant refers to a store that provides food (everything you can eat or drink) to customers, and is also called a restaurant, restaurant, or restaurant.
Restaurants can be seen in a broader sense than restaurants or restaurants, and under the Food Sanitation Act, they can be classified into popular restaurants such as snack bars, general Baekban restaurants, expensive family restaurants, buffets, and entertainment restaurants such as pubs selling alcohol, karaoke bars, and room salons. You can understand the word starting a restaurant in a broad sense, including restaurants, snack bars, buffets, and entertainment restaurants.

Restaurant business.

The restaurant business refers to a job that runs a restaurant that sells food, and is a concept of a job that includes restaurants, franchises, cafes, and restaurants. As can be seen from the meaning of the restaurant industry, start-up of the restaurant industry can be understood as a field of occupation such as construction and transportation.

The cost of starting a restaurant.

There are not many results from the survey only on the cost of starting a restaurant, so we looked into the cost of starting a business for general self-employed people, including starting a restaurant business. According to the “2018 Financial Life Report for Ordinary People” released by Shinhan Bank, the average cost of self-employed people is 81.48 million won, and about 50% of founders use loans to raise funds for start-ups.

Since it takes a lot of start-up costs for small business owners to prepare for start-ups, most self-employed people take out loans to cover the necessary funds. For this reason, small business owners are showing a painful result of 80% closure rate within two years of their establishment, which eventually leads to incomplete employment and increased household debt due to loans, causing social problems.

Then, why do you start your own restaurant with such a large investment cost but insufficient preparation period? According to interviews and surveys of restaurant founders in Seoul, most of the restaurant founders, such as restaurants and restaurants, are not interested in restaurant management or cooking, but rather start restaurants such as restaurants, snack bars, and chicken restaurants.

Most self-employed people who start restaurants such as restaurants and snack bars suddenly quit their jobs or change their businesses due to existing business deficits, and most small business owners have difficulty in operating them without time to prepare or gain experience.

In summary, restaurant start-ups are often rushed without preparation for commercial district analysis, location, or menu selection, which leads to management difficulties such as high rents, premium, lack of competition and publicity, and increased operating maintenance costs.

Restaurant start-up loan.

I think many people will recognize business loans no matter what industry they prepare to start a business as well as restaurants.
Self-employed or small and medium-sized business owners often give up before they even start because it is as difficult as picking stars to get loans for start-ups.
Next, I will explain the loan funds provided by the Small and Medium Venture Business Administration.

Loan funding.

If you start a restaurant with fewer than five full-time employees, you can apply for startup management stabilization funds supported by the Small Business Market Promotion Foundation, up to 70 million won, and if you are under the age of 39, you can receive up to 100 million won in youth employment funds.

How to apply for funding.

With credit proxy loan funding, you can receive a confirmation of funding from a local center and receive a credit guarantee through the Korea Credit Guarantee Fund or a local credit guarantee foundation to receive funds from commercial banks.

After visiting the Regional Support Center of the Small Business Market Promotion Foundation, please consult on the application for funds and check the amount of support and availability.
In some cases, business performance by guarantee agency is required to prevent closing business with funding.

Since this fund is not supported at all times, please call the competent center in advance to check it.

The basic loan period is five years, and the loan rate is currently around 3.0% per year due to the three-year installment repayment with a two-year grace period, and the variable rate per quarter (3 months) is applied.
Preparatory documents may require business registration cards, regular employee certification documents, workplace lease contracts, ID cards, educational receipts, and sales performance data.
As such, it is a loan for start-ups, but few places actually lend start-up funds at low-interest rates from the beginning.
If you need to take out additional loans during management after starting a business, you can understand that most of the funds are used.