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A business plan is essential for most new businesses seeking any kind of financing. We will use a restaurant as an example. It is absolutely imperative for a prospective restaurateur.. By creating a restaurant business plan, you do two things:
A business plan is especially helpful to those new to the food/restaurant industry. As you research information for your restaurant business plan, you may encounter problems you hadn’t considered previously, such as licensing, health codes and tax laws.
Most business plans have the same general parts, but some sections of your plan should be geared specifically to the restaurant industry. Here is a break down of all the necessary parts of a restaurant business plan.
1. Executive Summary- Start out with an overview of your entire business plan. Think of it as your introduction. Make it interesting, to keep your readers attention. Here are some tips for writing an executive summary geared toward a restaurant business plan.
- • You want to give the reader (investor) the basics of your business idea. What is the style of your new restaurant, name, location.
• Explain why you are well suited for this restaurant venture. Do you have previous cooking experience in restaurants? If not, do you have any experience in the restaurant business? If the answer is no, then you need to sell them on the idea that despite your lack of experience, you are still the perfect person for this new restaurant business.
2. Company Description – This part of a business plan is sometimes referred to as a business analysis. It tells the reader the location, legal name and style of restaurant you want to create. This is where you get detailed and explain your local competition, population base, and other information you have gathered during your research.
3. Market Analysis- This part of restaurant business plan is sometimes referred to a marketing stategy. There are three parts to a market anaysis:
4. Industry- Who are you going to be serving? Is your restaurant going to be catering to an older crowd at lunchtime? Single professionals at dinner? People with children and families? Explain your customer base and why they will come to your operation over the competition.
5. Competition- Who is your competition? Many people opening a new restaurant assume everyone will prefer their new establishment to the existing competition. Don’t undermine the other restaurants. They already have a loyal customer base, and luring customers from that base is not always easy. Find out as much as you can about your competition, including their menu, hours and prices. Then explain in a paragraph or two how you will compete with the already established businesses.
6. Marketing- What methods do you plan to use to promote your restaurant? How are you going to target your core audience? Perhaps you will offer a kids eat free night, or free lunch delivery to local offices. What is going to set you apart from your competition? Give specifics on how you plan to advertise (newspaper, TV commercials, ect…)Be sure to visit the Small Business Marketing page of my site for helpful tips.
7. Business Operation- Sometimes referred to as Products and Services. This is where you tell investors about your hours and how many employees you plan to hire. Here is where you explain the benefits of your establishment for customers, such as its convenient downtown location, or its close proximity to the local interstate exit. This is also a good place to mention any close ties you have to local restaurant vendors, such as food supply companies or local farms that will give you a competitive edge.
8. Management & Ownership- Who is going to run the ship? Are you going to be the general manager, bookkeeper, head cook and bartender? If so, how are you going to do it all? Many new restaurant owners either hire a general dining room manager or a kitchen manager (but usually not both). Explain who is going to do what, including any potential employees whom you feel will be a great benefit to your new restaurant.
7. Funding - Now the sticky part of a restaurant business plan. How much is this stellar business plan going to cost? Here you want to list the projected growth of your new restaurant. You should include a profit and loss statement that projects how much are you going to spend vs. how much you are going to make. This is a good time to once again point out all the great aspects of your new restaurant. Other items you should include in your funding report include:
• Break Even Analysis
• Balance Sheet
• Industry Data
• Possible Risk (show that you acknowledge them, and outline how you plan to deal with them)
For further information regarding how to develop a great business plan, call me at 727-403-9933.