A business plan is a must when starting any business type, especially when opening a new restaurant. Business plans outline your business objectives and goals. It informs investors and lenders how and when you intend to make money. A business plan can also guide you when making important decisions on how your restaurant works. We have compiled a list of tips to help you optimise your restaurant summary and turn an average business plan into an excellent, well-structured one.
Keep Your Information Organised
A good business plan is well-organised. It’s laid out to make it easy for others to skim or scan the content and find the information most important to them. You may also find an organised business plan more convenient since you can quickly turn to the executive summary or financial plans as needed. A descriptive table of contents can also help others easily review your business plan.
A detailed competitive analysis helps you better understand your ideal market. It helps you identify competitors in your area and devise a strategy for securing some of the market share. Being as detailed as possible gives you a better understanding of your competitors and helps you pinpoint exactly what works and what doesn’t, ultimately saving you money.
A good business plan should also include a detailed financial document with anticipated revenue compared to expenses. Try to anticipate all expenses, including both short and long-term. Include things like location rent, utilities, kitchen equipment, staffing, and food supplies. You’ll also want to include well-researched financial projections with income statements, balance sheets, and cash flow statements.
Try to break this information into categories: weekly, monthly, quarterly, and annually. Don’t forget to include information about extra necessary expenses, like business insurance.
Funding or Investment Request
If you plan on funding your new restaurant through loans or grants, you’ll also want to include a request section. In addition to asking for the funds, discussing how the collected funds will be used specifically is important. Be as descriptive as possible, including information on where to allocate the funds. If you want to buy a restaurant business that’s already established, include information about how much the company is already earning. Include local-area information to support your predictions. For example, if you’re opening a restaurant in Toronto, you might discuss current population rates or tourism statistics.
Whether acquiring funding through a loan or an investor, many potential lenders will want to know why you’re qualified to own a restaurant. You’ll want to be as thorough as possible with your relevant background in this section. Talk about education or work experience that will help you manage a successful business.
This is also a good section to include any training or certifications you’re working toward that may help the business. When possible, include supporting documents. This might include a copy of your resume, certifications, license, or diploma.
Potential lenders don’t just want to know about your relevant experience, they also want to know what other owners, members, or board members bring to the business. Your business plan should include the legal structure of your business, including whether or not you plan to file for a limited liability corporation (LLC). It should also include the education or work experience of all managing partners. Some businesses may even include a resume or CV for each member.
Service or Product Information
Make sure your business plan includes detailed information about your products. This is the menu you’re selling, and before opening a business, you’ll need to sell it to the investor or lender. Take an okay business plan to an excellent one with ample research. This shows potential investors that you’re an avid researcher and that you have the dedication needed to make the business successful.
A good business plan also includes detailed marketing information. A clearly defined marketing plan lets investors know how you plan to bring customers to your restaurant. The marketing plan may include a mix of digital or physical marketing trends. Be sure to include information on how much you expect to spend on marketing and how it’s likely to result. Business owners can also use this section to share information from market research.
Most restaurant business plans carefully list important information, like finances and owner experience. You can make your business plan stand apart from others by expressing your passion or dedication to the industry. Investors are far more willing to invest in a business owner who is passionate about their project than someone who came up with a new business idea a few weeks ago.
These tips can help your business plan stand out. Whether you’re seeking funding or simply want to share your restaurant idea with others, a business plan is the tool you need.