How To Write A Business Plan For A Restaurant
Aiden Sookdin, Author, The Minimum Wage Millionaire, 23 Feb. 2016
Tags: business plan for restaurant, how to write business plan, food industry, restaurant business plan, financing
After youâve decided to open your own restaurant, you will need to create a thorough business plan. This plan is essential if you want to obtain funding and convince potential investors to consider financing your new venture. The more realistic and detailed your business plan, the more chances you have of attracting investments or bank loans.
The business plan is used to provide a clear description of what you want to achieve and how you plan on meeting your goals. It also serves as a guide for future business development.
Not all entrepreneurs consider a business plan necessary; however, if you wish to start a business in the food/restaurant industry, a solid business plan is extremely helpful. Reasons why you would require a business plan include:
- raising equity funding
- defining your business objectives
- obtaining bank loans
- establishing business development strategies
- defining agreements between business partners.
A business plan for a restaurant should prove that your new business will be able to generate profit. It should be clear and concise, express your vision and passion for business, and be easily understood by all (avoid jargon).
Here are some of the most important sections to include in a business plan for a restaurant:
1. An executive summary – present your business plan in an interesting way. You want to entice the reader and make him believe in your business idea right from the start. You may want to include the reasons for starting this venture, your past experience (if you have any), and make your business sound reliable and profitable in the long run. Also include your main business objectives, company mission and values, and details regarding the business funding already available.
2. A detailed market analysis – after carefully studying the industry trends and your competition, you need to provide a thorough analysis of the services you will be providing, which customers you are targeting, what will be included in the menu, what your pricing strategy will be, and which marketing strategies you will use to attract customers.
3. Management analysis – in this section you will need to provide further information on all business founders and establish a clear personnel plan: how many waiters, chefs, and cleaning assistants will you hire and how much will you pay them? Explain each job in full detail and include details regarding employee motivation.
4. Financial analysis – how much do you predict this new venture will end up costing you? A thorough financial analysis should include a break-even analysis, a profit and loss projection (how much you will invest compared to how much you will make), a forecasted cash flow, and a balance sheet.
Don’t forget to support all these claims with specific industry data and perform a risk assessment. Your business plan should prove to potential investors, banks or business partners that your venture has great chances of success and that they would be fools not to invest in your business.