My background as an entrepreneur
My current challenges
Our current challenges are first, our business is struggling to increase sales. We understand we are still in the infancy stage and that it will take time to generate enough revenue to realize any profit, we have attracted a number of customers ( in a day we have an average of 50 customers walking in ). Currently, the business does not cover all of its costs, especially the labor cost (one of the employees is paid from personal funds). My request is how can we navigate through this?. Second, I am hesitant to invest more in the business for example I am required to install a glass window door at the entrance because it gets cold at some point where I am located, but based on the performance of the business so far I feel it will not be worth it. In addition, We need to purchase a display fridge and other equipment, of course in one part is due to lack of finances but also I don't feel strong on the location and the kind of customers. Originally I wanted to target middle-income earners rather than low-income earners customers we are serving right now. We feel the food we offer we sell it at an undervalued price compared if the restaurant could have been at a targeted location. At one point we think of relocating but then people are saying it's going to be big and attract more customers in the future. I am confused. Third, as I mentioned above we are short on funds to be able to invest further especially to purchase required equipment. I started the business with some equipment and utensils from home. Further, it is on record keeping and accounting. We do keep records daily using papers based systems. But I would like to understand what do the figures mean. I would have to prepare financial reports such as income statement, cash flow e.t.c . We can't afford to hire a professional to do that.
Actions I’ve taken so far
First, we reduced the price of foods to align with our customer's incomes. On the confusion, I have decided to stick to the current location and market at least for a year to see how it will evolve. But I also see it as an avenue for me to learn how to manage and operate the business, just in case in the future I want to relocate to a bigger market like how I wish it could already have the experience. On record keeping, I am reading how to prepare statements and how to interpret the numbers (I have a little background in bookkeeping and basic accounting).
My future goals
I want to make this business a success, I would like to see the traffic of customers generate more revenues and ultimately make sustainable profits. I want to offer a variety of dishes. In addition, I want to be able to pay a sustainable wage to our employees. One of our employees had to quit because the pay was not enough for her to pay her daughter's daycare fee, so she had to stay home with her (it broke my heart)
My motivations to work with a mentor
I believe I need someone with an experience in this same/or related industry to guide me especially at this early challenging stage. Someone to talk to.
About my venture
Nabellah Restaurant Started 2021
Nabellah Restaurant is a sole proprietorship food business. We offer food and soft beverages services. The business started operations in August 2021. We proud ourselves in providing fresh, taste local Swahili dishes.
Countries of operation: Tanzania