 Hello aces welcome back to module three lesson number two assembling your build out team in this lesson You're gonna learn how do you assemble your build out team on time and on budget as a first-time restaurant here? You are responsible for a lot of different responsibilities such as Architectural drawings for the flow of how people come in and out of your restaurant You're also in charge of all the equipment for your restaurant You're in charge of making sure that all your equipment has enough Electricals that comes to it because for example when we first started our ice cream shop ice cream machines They have different power usage and that's the reason why we need to make sure that the Electricals are able to run the line properly to ensure we have enough power to sustain our machines We need to ensure that all the plumbings are in place Making sure that if we were to build additional washrooms additional sinks and additional Equipment that everything is accounted for with the plumbing section We need to have carpentry to build all the car countertops walls all the structures licenses and permits that are Regulated within your own city. You're also responsible for insurance to make sure that all the contractors that are working with you are Insured you need to make sure that they have workers compensation drywalling insulation HVAC Which means that the air ventilation and timeline budget the quality of the work that comes out to your vision So basically you're in charge of everything all the different responsibility Now you might be thinking Wilson like this is a lot that is on my shoulders But you know what at this point in time That's why we're going through this lesson because I'm going to show you that even as a first time Entrepreneur first time restaurant here you're gonna be in good hands You're gonna be able to build out and assemble this team that works for you So you don't need to worry about things so then that way you can focus on Cooking that amazing dish and bringing it to the world. So who what who is gonna be in your build-out team? We're talking about different contractors. We're talking about electricians. We're talking about plumbers. We're talking about designers licensors So on and so forth. So anyone that can help you throughout the process They're pretty much your build-out team, but typically speaking. These are the major people and major Trades that are needed within your build-out team now where my Recommendation is to always go with a general contractor. What is the definition of a general contractor? Basically, it's a project manager who is licensed to build everything out for you They have the experience in doing so Yeah, so finding someone like that is super helpful to be able to for you to actually unload everything and let them take Care of things for you Find a good general contractor and oftentimes these people already have teams and people that they work with Trades that they work with on a regular basis. So for example, you don't need if you were to go out and assemble your own team You would probably need to go and dial and Google. Hey top Electricians in my city and then top plumbers in my city Whereas if you find a good general contractor, oftentimes they work with people and trades that are within their reach And then they would call them. They're like, hey, you know what? Do you want to come and help me out with my plumbing project so on and so forth? So that's why they usually work with a multiple different trades that they pull into different projects if needed They'll also be very familiar with all the licenses and permits needed within your city Which at the end of the day, it does save a lot of time from the back and forth So imagine just you going to the your city and applying for different licenses It's very difficult to adhere to everything that they ask for and on top of that a good general contractor Usually knows the people that they apply the license with and they know that like what would fly what would not fly and that in Turn saves you a lot of money and a lot of time That really is where you're gonna be able to save and why they're worth it is because it's gonna save you time On top of that, they would also know where to shop for the cheapest ingredient Equipments and where if they don't know they would know where to point you because they work with so many people within this trade Now why do you want to have a good general contractor is because they oftentimes have all the licenses that Covers contractors that work under them So for example, you don't need to go out there and apply for your workers comp because their insurance already covers for all the trades that work with them If anything goes wrong because you employed a general contractor You can actually go back to them and they will give you the quality assurance And that's how they make their money and usually that's why like if you were to break down all the different components Yes, it may be cheaper However, you don't have someone that take care of everything for you and oftentimes the premium that you pay For a general contractor is worthwhile Because it does take a huge load off your shoulders at the end of the day They're responsible for the quality of the work. So then that way you can focus on building up your recipe Also higher price for their expertise relationships and time that say save you so oftentimes people don't They don't see the value in them because they're like, why would I be paying 20 to 30 percent more? When I can save all this money, but at the end of the day because you don't know the trade It's oftentimes once again good to go with a general contractor So where do you find general contractors? Oftentimes they come from word of mouth Signs at other job sites. So when they're working at a job site, you can go in Actually, I've done that a few times is that oh, you know I'll just knock on the door and I just go in and I'm like, hey, you know what? Are you guys gonna be taking on new clients because I find that they did such an amazing job there? Online listings Craigslist, but this is something some newspapers. So these are areas where you can find a General contractor not that I prefer not that I it's my preference for you to go into onto Craigslist or newspaper to find one I highly recommend to ask for referrals because usually that's when the best people come out So how do you identify what is and who is a good general contractor? Has a contractor completed similar projects to the one that you want to build have they worked in the restaurant industry? Or are they just general contractors for residential? That's a big difference and all the rules are very different as well Do they have a list of reference that you can contact perhaps previous restaurants that they have Done renovations for it'd be great to actually go and call them your the reference and see how that experience is like with their old client and usually if they have bad experience They would not give you the reference, which is why it's a good thing that they can actually come up with a few different references for you How long have they been in the business? I try not to work with People who are that like very novel mainly because it's just like I'm spending like two three hundred thousand dollars of my hard-earned money I don't want to be able to you know have you use it as like a learning experience because that's not really what It is for me. It's my livelihood. It's my blood sweat and tears So definitely find someone who has been in business for more than at least five years that would give them sufficient time and Yeah, are they licensed and insured hundred percent you need to make sure that your general contractor is Licensed and insured because if they're not then if anything goes wrong within your unit It goes back to you. So for example, if the plumber hurts themselves, they cannot sue the general contractor They'll end up suing you so make sure your general contractor has and can provide the licenses and insurances for you Also has a contractor or the company that they work with been ever sued because oftentimes if they have been sued Or they're in the middle of a lawsuit that means something sketchy is going on Signs of a bad general contractor and these are just based upon my experience and what I've seen in my clients experience So this is not a one and one size fit all kind of list But definitely go with your gut go with what you think is right So some of the things you should look out for are if they ask you to go get permits yourself That means that you know what? They're not that great You know because at the end of the day they should be the one that are professional That's why you're hiring them But if they're telling you to do it, that's a big red flag Second thing is that if they only accept cash because if they only accept cash and let's say for example They give you 10% off and discount of the whole contract and you're like wow I can save you know what out of a $200,000 contract. I'm saving $20,000 of course I'll pay you cash, but then note for one thing they can easily bail they can easily be scamming you There's a lot of different ref likes when it comes to cash unless you know that person Okay, so definitely do not just pay by cash on on top of that because you can do your proper bookkeeping and write this stuff off If they solicit door-to-door that means that they're not good because or they're just starting out because if they're good They should always be in demand Offers exceptionally long guarantees usually if it sounds too good to be true It often is too good to be true If they ask you to pay for everything upfront and give you a major discount Do not ever do that because nine out of ten times that is a scam Just to scare you into signing for repairs claiming that they're urgent so halfway through the project They're like you know what Wilson the waterpikes leaked. I need to sign another $20,000 budget for fixing everything You need to sign it now. Do not ever get pressured into doing something like that Do your proper due diligence because usually when they do that once again, that is a really big red flag of scams So what are the terms that you should be look for looking for once you have identified your general contractor? You found them you're online. There's referrals. There's two or three that you're looking at net right now And now you're trying to figure out. Hey, how can I negotiate terms with you as my general contractor? Depending on where you all are there are different laws But typically speaking I would break down what I need to pay in three or four different lump sums Okay, some states have a maximum of 10% down payment that you as a client need to pay others don't okay So typically speaking 10 to 40 percent down payment upfront when you engage in a project Obviously the less you pay up front the better because What the general contract contractors usually do is the money that they get from you they go out and start buying material They start paying for different sub trades and so on so forth Which is okay, but you do not want to pay them everything up front because otherwise if you pay them everything up front They can just easily bail okay, and they have no incentive to completing everything for you on time and on budget Mind you as a general contractor they do and they are running multiple projects at once So for example if you pay them everything up front and they have no incentive to actually go and get money from you Then they'll probably delay and and really put you not as the priority of all the projects that they're handling with They'll be like you know what let's just put put out the fire on hand first Which is why you should always hold on to the different sets of payment second type of payment are for any major Mousetones, so we're talking about whether after you get your city license or city permits That would become a really major milestone because they need to adhere to all the compliances as well and Last thing is that you should always always always retain at least 15% to of the whole payment for after the completion of the whole thing Because what happens what ends up happening is when they finish renovating you're not that happy with the thing you go in you see like Marks everywhere you see the pain is not finished you see that you know screws are everywhere you By holding that 15% they still have incentive to come and complete everything for you However, if you paid up everything already and your project is technically complete Then they have no incentive to come back and serve you any better Which is the reason why I break it down to at least three different payments and make sure you have a proper Contract on hand because if you don't have a proper contract if you don't identify all the terms right up front They can easily a majority of time they will come and screw you So which is why having a proper contract is essential for your whole restaurant project now It is your turn go out there and find your general contractor team Identify whether your general contractor is a good one or a bad one in the link below Go and download the worksheet and then you can follow along to identify your general contractor So in this lesson what you've talked about and what we have learned is how do you assemble your build-out team? So then that way you can complete your project on time and on budget in the next lesson What we're gonna be talking about is how do you source and develop your signature recipe? I'll see you guys in the next video