This one is pretty easy. You need to pay your vendors but ideally you don’t need to pay them right away.
Why? The longer you get to hold on to your cash the more you can accumulate before the bills come due. That means you can build up a stockpile for when things get slower or when you need to replace some equipment or supplies or, we hope, finance your second location.
When you first start your restaurant you may only get 10 days to pay and some of your vendors may even demand cash on delivery. That’s normal and revolves more around your personal credit than the business.
Once you have established yourself however you should be able to get net 30 day terms with most of your vendors. That means you have 30 days to pay before they add anything extra to the bill. There will always be some vendors who you need to pay at the time of service, but ideally you will get to pay at least 80% of them a month after they delivered the goods and there may even be a few you can stretch out farther than that. As long as you aren’t paying a late fee or interest, the longer you can take to pay the better.
Just enter your best estimate of the percent of each type of payment you will make. As I said, a good guess is 80% at 30 days and the rest immediately but if you have more specific numbers by all means use them.