There are any questions and issues that come to light from the interview with Mark Slama, an entrepreneur who is starting a Bar/Restaurant venture in Staten Island, New York. However, many of these issues are ones that directly relate to the typical concerns of small-business start-ups. For instance, the key issues that are of concern to Mr. Slama are similar to ones most small-business owners have: The importance of devising and implementing policies designed to achieve a sound financial basis for operation, high levels of customer service, effective advertising and marketing strategies, and the hiring of a stable and effective staff.
A sound financial basis for operation must be established before undertaking any small business enterprise. Many entrepreneurs make the mistake of thinking that the variety of operating expenses to run the business will be generated by the business in three or four months of operation. Mr. Slama believes in order to have the greatest chances for success, he needs to acquire funds that will see him fully through the first twelve months of operating expenses. A financial plan is often needed to provide investors or banks with information necessary to make a decision. Such a plan often includes the amount of start-up capital required, the capital necessary to cover ongoing and regular operational expenses for twelve months, a projection of anticipated revenues, and a projection of when the business expects to break-even. All costs deemed necessary to maintain inventory for a twelve month period should also be included in such a financial plan. For example, the expenditures on food, wine and liquor, and table lines often have to be spent in advance of any revenue generation.
Advertising and marketing are the lifeblood of any business. Without customers knowing the restaurant is in operation, all the financial planning in the world will not ensure success. As