Restaurant Business Plan
Business plans for success
Successful businesses don’t just go from innovative ideas to huge profits. If you’ve just come up with a great vision for a restaurant that you want to put up soon, then you’ve got to have every aspect of the business covered other than the novel ideas for the place’s theme, menu, and overall ambiance. You need something that will drive your restaurant’s growth as a business, ensuring its profitability and growth in the long-run. What you need is a business plan.
A business plan is a document that enables soon-to-be-established businesses an outline of its objectives and the steps required to achieve them, its marketing strategy, its operational plan, its financing approach, and its prospects for future growth. You need it because it forces you to organize every single detail of your upcoming restaurant. As you move ahead, you can refer back to this document to make sure that you are indeed running on the right track.
Restaurant business plans usually have three major components. The body or the narrative provides a general overview of the restaurant’s concept, specific products and services, targeted market segment, initial managerial team, and forecasts for the next two to five years. Meanwhile, the financial analysis makes use of pro forma statements to present the restaurant’s expected sales, revenue, and cash flow in its first year. It primarily shows whether the business is viable and whether it’s worth pursuing. What isn’t included in the body and the financial analysis are included as supporting documents. These include the menu, interior design, floor plan, etc.
During the start-up stages, the essential point of preparing a business plan is to attract investors and to pull in external financing. Investors normally use the management team as a barometer of the business’ viability while banks and other financing institutions allow their highest attention to the financial analysis to examine the restaurant’s profitability and ability to pay its obligations. As you move along, your business plan turns from being a proposal to a strategic plan as well as an everyday guide.
If the idea of preparing a business plan for your restaurant overwhelms you a little then you can seek help from online resources such as growthink.com and planmagic.com that provide free restaurant business plans. These, although quite generic, are very helpful as it presents you with a clear picture of how a plan should be written. While these free restaurant business plans are already prewritten, you should still spend time customizing the narrative of your plan. Just use it as a pattern and try not copy entire paragraphs. Their financial analysis tools offer even greater assistance depending on the scale of your restaurant, you may want to hire professional help to supplement the support you are getting from these. Also, visit paysites smallbusinesspoint.com and virtualrestaurant.com to enjoy more sophisticated and personalized support. The multitudes of free restaurant plans available online will undoubtedly take your business far but only up to a certain distance.
The importance of having a restaurant business plan at hand can’t be further underscored. It wouldn’t be a stretch to say that your business’ success rests on it but at the very least, a plan can significantly reduce the turbulences that you will encounter as your restaurant takes off.