A business plan is the culmination of diligent and thorough research into the financial and marketing data that will help support the success of a new business venture. A business plan is important for any venture, providing realistic data and insight for what the company will entail once it opens. It keeps the owner or operator focused on theessential steps along the way. Writing a business plan prepares the owner or operator for the rigors of running a restaurant business. This is especially helpful for someone who is new to the restaurant industry. In an inherently high-risk industry, an owner or operator does well to plan the opening process down to the letter. As it stands, the business plan does not guarantee success; it does,however, provide a strong launching point and a path to follow.
The Purpose of Writing a Business Plan
Writing a business plan requires concentrated research into the local market and practically forces the owner to work out the financial and operational details as much as possible before the process of building, buying and hiring actually begins. The more knowledge you have beforehand, the betteroff you will be in the end, even if it means trying several ideas before the right one takes root. Writing a business plan bolsters your start-up process in these ways:
* Demonstrate a plan to lenders. Having all the details and numbers prepared to will help back you up when you approach others for loans or investment money. Investors and money lenders want to know they are making soundinvestments with a good expected return on investment (ROI). Anything you can do to support your loan application will be beneficial, and a clear, thorough explanation of your business plans is the best place to start. This also helps you make sure your idea is viable before you begin to pour money into it. » Learn more
* Learn about your role as a restauranteur. Planning everything out on paper canmake it easier to “see” the start-up costs, annual budget, projected sales, and also help you reduce risks. You also want to identify any potential problems, such as poor location or lacking customer base, before you jump into running the business.
* Evaluate your place in the local market. This goes hand in hand with learning the risks of the business. Be sure you have looked into the existingrestaurants in your area, focusing on the ones that could pose a threat. This type of research helps you make the right decision when proposing a new concept.
How to Write Your Business Plan
The business plan, while providing essential groundwork for would-be owners and operators, is usually issued to bank lenders and investors with the intention of garnering loans and investment capital. Hence,clear details, professional writing and excellent organization are highly important. Use these guidelines when writing a business plan:
* Prepare a thorough outline. Before writing, be sure your ideas are well thought-out and clear to a reader who may not be familiar with your business concept.
* Write clearly. Be sure that you employ strong writing skills in your business plan. Mistakes,poor structure or otherwise sloppy writing may taint your proposal’s impression with lenders.
* Use proper structure and organization. With any persuasive writing, it is important to be mindful of overall structure and organization. Order your ideas logically throughout the document.
* Market your management ability. In order for others to believe in your business, you must prove you are theright people for the job. Make your experience and business sense known by discussing your ownership team’s prior successes and how you plan to attain your objectives with your new undertaking.
* Prove profitability. In addition to management ability, you must verify the viability and profitability of your restaurant concept. Explain in detail why you believe your business idea should be...