A business plan is the most important factor in driving a business of any kind. Managing finances as a restaurateur is always a messy business, which is why it is utterly important to create a business plan.
We will tell you why.
1. It will help you in analyzing the different parts of running a restaurant, your competition and your market. It will also help you in getting financing from a bank or from an investor.
2. If you are new to the food and beverages industry, it will be extremely helpful to you as you will discover many potential problems that you might encounter in future. So, here we will tell you about all the necessary parts of a restaurant business plan.
1. Executive Summary
Executive summary is generally pitched to a potential investor. Give an overview of your complete business plan and keep it interesting.
Basic details such as the name of your restaurant, location and type of cuisine you will be serving are mentioned here. Answer all the questions or queries that the investor might have.
Why you are well suited for this restaurant venture?
Do you have a previous experience in handling any dining place?
Do you have any past tie-ups with any eatery?
If the answer is no, then try your best to sell them the idea that you are still the right person for this new business.
2. Company Description
This part of a business plan is sometimes referred as business analysis. It tells the reader the location, legal name and style of restaurant you want to create. This is where you give details and explain your local competition, population base and other information you have gathered during your research.
3. Market Analysis
This is also known as “Market Strategy”. There are three parts of market analysis:
Be specific about the details.
Who are you going to be serving? Is your restaurant going to cater to the older folks at lunch time? Single professionals at dinner? Menu focusing on college kids? Families with young children?
All these questions will help you in identifying your customer base. Once, you have identified your customer base, you can plan your marketing strategies around them.
Identify your competitors. People have a tendency of assuming that everyone will automatically prefer their new establishment to the existing competition. Never make this mistake. Customers are always loyal towards the place they are frequently visiting.
Try to do your research on who your competitors are. Find out as much as you can about your competition, including their menu, hours and prices. Then explain in a paragraph or two how you will compete with the already established businesses.
How do you plan on promoting your restaurant? How are you going to target your potential customers. Maybe you will give out free dessert after a meal or perhaps free delivery in local areas or free treats for the kids. How do you plan on setting yourself apart from the crowd. Be specific about which medium are you going to use such as print media(newspaper, flyers), social media (Facebook, Instagram), digital media (TV commercials, youtube videos).
4. Business Operation
Also known as Products and Services. This is the part where you will explain your investors about your working hours and how many employees you plan to hire. You have to explain the benefits of your establishment that it provides to customers, such as its convenient downtown location, or its close proximity to the local interstate exit. This is also a good place to mention any close ties you have to local restaurant vendors, such as food supply companies or local farms that will give you a competitive edge. You may consider using a good POS, like one here: http://getcirq.com
5. Management & Ownership
Who is going to run the place? Are you going to be the general manager, bookkeeper, head cook, and bartender? If so, how are you going to do it all? If not, then who will be working on these positions. Many new restaurant owners either hire a general dining room manager or a kitchen manager (but usually not both). Explain who is going to do what, including any potential employee who you feel will be a great resource for your new restaurant.
We really hope these tips will help you out while you are preparing the business plan for your new restaurant.