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Business Plan
 Creating the Business Plan
A business plan is a map of the future. Startup businesses need the direction and foresight a business plan offers. Too many restaurateurs skip this step for the possibility to quickly create cash flow. The business plan
provides the framework for achieving profitabilityand highlighting challenges and Barriers that need to be considered or tackled.
Before coming up with a business plan always consider how it will be used
- Acquire investment capital
- Obtain a bank loan
- Obtain lease space
- Engage managers to believe in and enforce your concept
- Gain respect and confidence from prospective employees
- Allow management to concentrate on execution
- Create a outline for operating your restaurant
Keep the business plan simple, concise but with a professional and organised layout. Below is a breakdown of the components of a strong business plan. The following points will help you to layout the skeleton.
THE EXECUTIVE SUMMARY
This should include several pages that give a summary of the business plan components that are set to follow. The executive summary should be written last, after all components of the plan. Without giving away the plot, use the summary to hold the reader’s interest and convince them to thoroughly examine the more detailed sections of the plan.
COMPANY DESCRIPTION
Break this down to ensure several points are covered;
- Legal Structure – Establish the ownership structure and capitalization plan of the restaurant and include a brief description of the legal organisation, such as a trust, partnership, sole trader or limited liability company (LLC).
- Site Lease or purchase – Location selection will be looked at very closely and the financial consequences of signing a lease or purchasing a site will require a detailed explanation of the reasons behind such decisions.
- Capitalization Needs – Write here an overview of the estimated capitalization needed to open and the sources planned to fund it.
- Business Concept – Set the scene for the kind of experience you want your customers to enjoy. Use descriptive language to describe the following;
- Service style
- Size and seating capacity
- Décor and furnishings
- Operating hours and meal periods
- Atmosphere and ambience
- Lighting and music
- Menu theme
- Unique selling points
- Related products and services such as catering, retail etc.
- Sample Menu - Include a sample menu in your business plan but be sure to consider design, variety and interest as the menu is a major selling tool.
- Building Design – include architectural blueprints, interior design layouts to strengthen the visual image of the concept.
MANAGEMENT TEAM OVERVIEW
Selecting reliable and sound management is crucial to the success of any business. Include here, a summary of potential manager’s experience and background to reinforce that the pillars of the business will be supported. It is also ideal, although not compulsory, to include management agreements. These are another way of planning expectations, incentive plans and a termination strategy, if necessary.
BUSINESS ENVIRONMENT ANALYSIS
This is where the plans’ walls start to thicken. Conceptual ideas must be substantiated with thorough market research. There are four factors to consider in the market analysis:
- Industry Overview - (Contact Matthew Kelly for advice on researching industry trends)
- Target Market - Describe your ideal customer profile, including demographic characteristics, proximity, market size and habits.
- Location Analysis – This is one of the most important aspects of the business plan. It should describe existing market conditions you have selected. You should include demographic statistics, description of local industry and economic outlook, location traffic counts, traffic generators, residential and business population and proximity. Comparisons between market conditions and target market characteristics should also be drawn.
- Competitive Analysis – Research the local competition and show the extent of market saturation, direct competition and the aspects of your concept that give you a competitive advantage over each of them.
MARKETING STRATEGY
Give an introduction of the marketing philosophy that will be the core of your marketing strategy to indicate that a workable plan is in place. Be creative. There are many marketing concepts such as, building a customer database, building business relationships, community involvement, advertising, public relations and in-house marketing, which you may wish to consider.
OPERATIONS PLAN
This section should set out a general run-down of how the restaurant will be run on a day-to-day basis. Important considerations for describing your operations include;
- Staffing – List positions, number of people needed for each position, rate of pay for the position, recruiting plans and services, hiring standards and the interview process that will be used.
- Training – Write an overview of training programs for staff. Be sure to include in-house training, any certificate training and the mandatory Responsible Service of Alcohol Training.
- Daily Operations – Summarise the day-to-day operations of the restaurant and explain any operational issues.
- Customer Service – Plans for establishing service attitudes and policies,
including how to encourage and manage customer feedback and complaints
- Suppliers – Identify suppliers that will make your business stand out but also ensure you have a back up plan should your company rely on mostly unique and exclusive products.
- Management Controls – Include controls such as, point of sale systems, time and attendance tracking, scheduling, operations checklists, ordering procedures, inventory control, cash control, security measures, safety policies and liability reviews.
- Administrative Controls – Make sure vital administrative tasks are well looked after and you may want to consider the incorporation of financial controls to ease the minds of investment partners.
MUM’S THE WORD
Before submitting a business plan for review, you should consider having reviewers sign a confidentiality agreement. This step will ensure that your and your unique concept is protected.
No matter which direction you take, remember you’re not alone. You may want to bring outside parties into the process, such as accountants, attorneys and committed investor who can offer an extra set of eyes and provide constructive criticism that may improve and ensure a polished result. A business plan takes time and effort but will remain one of the most valuable tools in ensuring your restaurant is successful.
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