Starting a business involves planning and preparation. A restaurant is one of the most popular businesses that people go for, especially people with culinary and food service backgrounds. Knowing some aspects of owning a restaurant is not enough to get loan approval. Providing a well-written business plan can help investors and loan officers with their assessments prior to giving their approvals.
Step 1
Provide the company description, which should include legal structure, site lease or purchase, capitalization needs, business concept, sample menu, building design, and layout. The legal structure should indicate the type of ownership such as independent business including S-corporation or LLC (Limited Liability Company), sole proprietorship, or partnership. It should also include the location to buy or lease. The information should at least provide a list of possible locations if the site has not been determined. Plan and write about the capitalization needs, which should include the estimated amount needed to fund and operate the business as well as detailed projections and investment requirements. Create an image of your business by writing a concept, such as what your customers would expect from your restaurant. Create the sample menu clearly and attractively to help sell your concept.
Step 2
Add a section for management team overview. The investors would look into who will manage the business to see if your choices would make the business successful. Some restaurants fail because of mismanagement; therefore, investors would like to know if you are choosing the right people to run your restaurant. Provide an overview by indicating the position, a brief description of the role, summary of experiences and qualifications. At times, inserting the actual resumes may be necessary.
Step 3
Provide an analysis of the business environment. Obtain an industry overview from the National Restaurant Association (NRA). The report should include forecasts, anticipated sales, customer spending habits, dining traits, operation trends, and industry workforce trends. Include information on the market targeted by providing information on the demographics (including income, household size, ethnicity, and household age). Provide location analysis. If you do not have a location yet, you can limit the information to the city or general location area for the proposed concept. Make an analysis of possible competitors by citing their proximity and similarities to your concept. Check restaurant.org for additional information.
Step 4
Create a marketing strategy by including plans for the grand opening and ongoing marketing. Some marketing ideas include building customer databases, direct mail campaigns, charity involvement, advertising, and public relations.
Step 5
Include a plan on how you will operate your business. It may not be a complete plan since the business is not operational yet; however, you can mention key considerations for describing the operations, which include staffing, training, customer service, suppliers, management controls, daily operations, and production. In addition, include administrative controls, daily cash control, weekly prime cost report, an accounting system, payroll processing, purchasing records, and accounts payable.
Step 7
Write an executive summary of your business plan. This should summarize all the components previously mentioned. The executive summary may be up to four pages long. Make sure you use clear and concise words. When you present your business plan, the executive summary should go on top; however, you can write the summary after you have completed describing in detail every component of the business plan to make it more cohesive.
Tip
Use business planning software to help you in creating your restaurant’s business plan.