By the time you have finished reading this article, you will discover what things that you need to take into account to create a winning restaurant business plan; while making sure it is professional even if you are not an expert.
Let’s begin! You have got a winning idea for a restaurant business and all you need to do is put it on paper to make it tangible. Maybe you are already running a restaurant but you need to reorganize it. Either way, a professional restaurant business plan is a total necessity to bring life to your project.
I know what you are thinking. How the heck should I even begin writing this paper? Where do I start? Well, I can guarantee that it is much easier than you may think. Simply put, you must know the focal points of a business plan and what tools you need to use to develop it.
Let me start by telling you that this guide is quite long, but if you want to create an effective plan for your eatery, then it is necessary that you take 5 minutes to read every single word of this article carefully. I will run you through the whole process which will ensure you hit your target even if you are not an expert.
If you’re looking for a useless business plan sample made for another restaurant to copy then you are in the wrong place. This guide is for thinking being who want to make their business profitable.
If you are searching for templates or samples on the net to give you inspiration, then you are wasting your time. The only place where you should get inspiration is from your brain. What you need is just a little bit of knowledge of a business plan structure and the right tool to guide you through each step.
I’ll tell you right now that the only weapon that you need to create a killer business plan is a program created by the award-winning company Palo Alto Software.
It will save you time, money and create a professional document that will impress your investors and lenders while at the same time providing expert advice every step of the way. After I will give you more detail about this powerful software.
Are you ready? Let’s see step by step how to create an effective business plan for a successful restaurant.
The 6 Crucial Parts Of A Business Plan
Below are the 6 key elements of a successful business plan. Read carefully to get an overall idea of what you will have to write in the document. By writing this document with Business Plan Pro, you will develop every single point with the help of an expert.
1. Executive Summary
This is an introduction to the business plan which includes your mission statement, a brief description of the restaurant and the competitive advantage.
If you want to write a compelling document, you must become a black belt in the Executive Summary creation. It is the most important part of the business plan; this section introduces the document itself and gives the reader an idea of the project.
You never get a second chance to make a good impression
Why is it so important? It’s the right element examined by a reader, and if your objective is attracting investors or getting a loan, I recommend that you put yourself in intelligent and productive mode and be clear, direct and compelling. The Executive Summary will contain the most important elements of your plan within a couple of pages.
Write the Executive Summary by taking into account the following:
- Clarify the foundations of the plan. Explain your restaurant concept clearly, what market you are targeting and your goals. It is important to not be ambiguous in these descriptions that define who you are, what you do and your USP. Don’t forget to dose wisely the ambition of your goals. The perfect way to spoil everything is by thinking to conquer an extremely competitive market in a record time and with limited resources.
- Quantity is not synonymous with quality. A well-written plan for a small-medium restaurant must be concise and relevant and have a length of between 30 and 50 pages. Regarding your Executive Summary, this should be between 1 and 3 pages depending upon the complexity.
- First impressions matter. Your first impression influences people. So pay attention that you do not make assertions that are not supported by data. Make sure that the numbers presented are clear and leave the reader without any doubt, use a professional style of writing, check for any errors in spelling, grammar, and punctuation.
2. Your Company’s Description
Now it is time to go deep. Provide a detailed description of your restaurant pointing out the key features starting from your mission statement. Next, write about your short, medium and long-term objectives clarifying your strengths, weaknesses and success factors.
Provide an overview of your business entity, legal structure, and organizational chart. Give details about all the subjects and stakeholders involved with the company.
Here are the points that must meet this section of the business plan:
- What’s the concept of the restaurant? Provide details about your restaurant concept making sure that you will leave the reader with no doubt as to your idea. You should be as creative as possible and convey the competitive environment in which your eatery operates.
- What are the objectives of your business? The objectives must be listed as explicitly as possible. This should include financial targets and all information that is already available such as revenue, gross and net profits and return on investment (ROI). It is also crucial to illustrate the KPI’s (key performance indicators).
- What are the critical success factors of the restaurant? Here the factors are not the business goals but what will enable the achievement. In this section, you have to indicate the characteristics of the management, the restaurant organization, products and all that will contribute to the success of the company.
- What are the difficulties and weaknesses? This is an extremely sensitive part of the document. You need to list all the weaknesses and threats that could cause the restaurant to be fruitless. List all the critical issues that need to be monitored or eliminated. It’s clear that every weakness can’t be removed! You as an entrepreneur will establish priorities; what points are to be taken on and what will constitute a strategic compromise.
3. A Complete Overview Of The Income Statement
This financial part should include at a minimum, a forecast of expenses and profits for the next 12 months. A more detailed business plan could include estimates of costs and revenue for the next 24 to 36 months. Often, the income statements also include a break-even analysis.
The financial analysis is undoubtedly the most painful part of the business plan creation. Here you should provide answers to some key questions, such as:
- What does it cost to start the restaurant?
- Are you self-financing or seeking sources of funding?
- When do you intend to repay the loan?
- What about a sinking fund for the restaurant equipment?
This part of the business plan will undoubtedly need specific skills and is the part that is most often entrusted to consultants unless you use a professional tool such as Business Plan Pro. This section is crucial in convincing a potential backer to invest.
The financial analysis will not only aim at finding sponsors but will also help you understand if you can bear all costs.
4. An Idea Of Staff
Illustrate the organization chart and write about the professional skills of the key figures – restaurant manager and chefs. How many waiters? How many kitchen staff? How will you go about hiring them?
5. A Marketing Plan
Usually, a marketing plan is made up of several pages and includes such things as competition analysis, the strengths of your business, target-market analysis, marketing strategies and other matters of this kind. Learn more about how to write a marketing plan.
6. An Analysis Of Market Trends And The Economy And A summary Of What Opportunities You See
No business is an island, especially in the modern world, which develops at a rapid rate. In this part of the business plan, you need to analyze the factors that are not under your control (such as the market trends or economy), the possible opportunities that can be exploited and the risks.
How Long Does The Development Of A Business Plan Take?
If you are lucky, you will only need time for a few drinks in the bar downstairs to find a winning strategy; but it may happen that it takes years to find a good strategy that will make your restaurant a success.
In addition to finding a winning business strategy, the other important part of developing a good business plan is to perform a detailed analysis of the competition. This usually only takes a few hours, although it is a task that must be repeated a couple of times every year to avoid being taken by surprise.
The One-Page Business Plan: Is It Possible?
It’s impossible to do a business plan on one page. It is not enough under any circumstances, especially in the F&B Industry. It is not feasible to fit everything that you need to consider to open a successful restaurant onto just one page.
Who Can Help You Do Your Business Plan?
I would recommend using Business Plan Pro, a complete solution which lets you create a winning plan easily and without spinning your wheels and wasting money. It is everything you need to create a paper that will make investors and lenders sit up and take notice.
Here are some key features:
Help At Every Step. The expert, Tim Berry-a recognized authority on business planning – provides advice and guidance at every stage of your business plan.
Over 500 Sample Business Plans. You have more than 500 complete sample business plans that you can easily find and edit. The software has plenty of examples to help you figure out what you need to write and how to write it.
Funding Tools To Impress Investors. Are you looking for funding from investors or lenders? The software includes all the additional data investors will want to see.
Financials Made Easy. Write your document without having to do any math! The financial formulas are built in, so the program will do the math for you.
Easy To Follow Instructions. Business Plan Pro offers complete and updated instructions. Also, if you are a visual learner, you can watch video instructions that will guide you through the crucial parts of your plan.
Charts And Graphs. Every chart, graph, table and all visual elements that you’d expect to find in a business plan are included.
Research Included. Find a venture capitalist, acquire real industry financial data, demographic information and more. Use the tools and resources to save you time.
Thanks to this powerful software you will be able to create a winning business plan for any restaurant even if you are not an expert. They are offering a 100% refund guarantee if you are not satisfied, but so for it has never happened.
Alternative, you can still find support to build you business plan in many other more “traditional” ways even if they are a bit laborious.
Here are a few of them:
Business Plan Courses
A course lasting a few weeks or even a month, it is ideal for learning how to prepare a business plan. Not only will it force you to constantly work on your plan but your teachers and classmates are an invaluable source of advice.
Business Advisory Centre
Depending on where you are, the business advisory centers may have different names and structures.
An experienced consultant can be a very valuable resource, but this doesn’t mean that you put everything in their hands and wait for the written business plan. Only you should have control over your project. The consultant should be a support, not a substitute.
It is important to learn how to manage risks, protect your name and brand and limit your personal liability. Your lawyer can give you good advice for this part of the business plan preparation.
Friends And Family
The help of friends and family is almost always free, and also comes from people who you know and trust. The support and encouragement from them are essential on those days when you think you are completely crazy.
Your Partner Or Spouse. There is no more to say, right?
Why Does A Restaurant Need A Business Plan?
Any business, whether large or small, to be successful needs a solid business plan which contains the strategy to be executed on the field through an action plan.
First the Warriors win and then go to war. (Lao Tzu)
Having a clear strategy before coming into action is the key to success in any field. So far, I have never seen a restaurant success without have built a proper business plan.