Today, more Muslim individuals prefer to order in rather than dine out, in a bid to save money, and not have to take up so much time and effort in getting the food they enjoy. They either turn to online halal food guides like https://halalgo.com or online food establishment stores. As such, many halal food establishments have set up online stores to cater to this target market.
Even halal restaurants are also looking to tap on this growing market, and maximise their profits, in the wake of higher competition, and declining revenue. If you are a halal restaurant owner who intends to start an online food delivery and catering site, one of the key things you must take note of is your finances. Finances can basically be divided into 3 components, namely funding, expenditure and income. Let’s look at each component more closely in the next few paragraphs.
Funding basically means the various sources of sustenance for your physical and online halal restaurant business – be it whether when you are first starting up or even you are already running a thriving business. The funds can come in the form of your own savings, bank loans, loans from family or friends, investors, dividends or payouts from your own investments, philanthropists, advertising revenue, etc. Having constant funding is important, especially in the fledgling stages. This will give you ample opportunity to focus more on the business at hand rather than sweating your brains out to raise funds to actually get your business started or running.
Next, comes the expenditure part. This basically involves clearly identifying what you have to spend for your physical restaurant and online food delivery and catering business. Do ensure that you constantly monitor how much you spend or need to set aside in future for your employees, staff, website, facilities, equipment, supplies, utilities, technologies, maintenance and even outsourcing. Where possible, try to minimise cost by choosing reasonably priced but good facilities or equipment and saving on supplies and usage of utilities. Other ways to minimise cost include doing some of the tasks yourself or get your members of your team to do them in the initial stages of your business. But once you can afford to spend on better technologies or outsourcing, we strongly urge you to do so in order to focus more of your time on maximising profits. However, if you do not keep track of exactly how much you have to set aside for expenditure, this can greatly affect your profits and might even lead you to incur losses. And uncontrolled business losses are a big no-no if you intend to control your wealth.
The last aspect of finance is to monitor the income you obtain from your business. There are many ways to monitor your income – the most obvious being how much money you earn from your sales on a daily, weekly, monthly and yearly basis. The more intricate measurement of your business income includes monitoring profit per customer, per sale, per prospect, per advertising, etc. Apart from monitoring how much income you are earning, you should also pay very close attention to the sources of the income. This will assist you to better focus your marketing strategy and eventually maximise your profits.
It will be wise to prepare a simple spreadsheet to monitor your funding, expenditure and income i.e. to see how money will flow in and out of your business. You should also prepare and project out at least one to three years of your expected cash flow. Please note though that any further, and the figures tend to be wild guesses. With this spreadsheet, you can constantly monitor your cash flow and determine whether you are moving along the right track towards running a profitable business. Right here, we should stress that halal restaurant entrepreneurs be more cash flow oriented and not forget the supremacy of cash flow, or be overcome with such hazy factors as stock value and other less tangible indications of your business’s value.