So you are thinking of opening a restaurant (or any business for that matter) and you are wondering if writing a business plan is all that necessary. Well, if you are going to require financing, it is an absolute necessity or a lender will reject you pretty much from the get go. It is a common misconception however, to think that business plans are written for the sole purpose of obtaining financing. The most important reason for writing a business plan is to create an essential management tool to use in the present as well as in the future. It is your roadmap to success that ensures you have fully looked at and analyzed all of the components and potential obstacles you may encounter along the way.
A well-written business plan should contain the following components:
1. A cover letter that states what type of business you are creating.
2. A non-disclosure statement that informs the reader to keep the contents of the plan confidential.
3. A title page.
4. An Executive Summary. This section is probably the most important part of your business plan. It should include a description of your business, a vision statement and a mission statement (these two are very different from each other). Opportunities and potential threats to your success.
Some of the other components you will need to include in your plan will explain why you chose the particular location for your business, what are the demographics of the area you chose, foot traffic analysis and distance from your nearest competition. You should discuss your environment and market that includes a complete competitive analysis.
Most importantly will be a comprehensive marketing plan that includes your product (menu), your pricing strategy and how you plan to market your restaurant or business.
Lastly, your plan should include a discussion of your financials. This section should include a balance sheet, an income statement, a statement of cash flows, an expense statement, a benefit-cost analysis and your forecasting techniques.
Does all of this sound daunting to you? It doesn’t have to be. Hiring a professional consultant to assist you can result in putting together a comprehensive business plan that will plot your way to a successful business launch and insure you have the best chances for future success.
For more information please visit our website at www.thealdierigroup.com or call our office at 661-799-7876. Ask for a free one-hour consultation.