Many people of dream of opening their own restaurant. They see it as an opportunity to turn a love for entertaining or cooking into a business. Unfortunately for many, the reality of running a restaurant is not at all what they expected. Long hours, low pay and lots of stress run many out of the restaurant business after just a few years. One reason for the high failure rate is that restaurant owners fail to treat their business like a business from the very beginning.
They have no plan to deal with problems and unexpected expenses and don't understand the scope of cost associated with opening a restaurant. One way to prevent these types of problems is with a well written business plan. By writing a restaurant a business plan, you do two things:you show the bank you have a clear and concise plan for getting your restaurant up and running and you have a contindency plan for problems.
Creating a restaurant business plan forces you to learn about all the different parts of restauranting, as well as your local competition and the local market. Plus, a business plan is essential for most new businesses seeking any kind of financing. It is absolutely imperative for a prospective restaurateur. and is especially helpful to those new to the food/restaurant industry. As you research information for your restaurant business plan, you may encounter problems you hadn’t considered previously, such as licensing, health codes and tax laws.
Most business plans have the same general parts, but some sections of your plan should be geared specifically to the restaurant industry. Here is a break down of all the necessary parts of a restaurant business plan.
Step n°1 |
Start out with an overview of your entire business plan. Think of it as your introduction.
Make it interesting, to keep your readers attention. Here are some tips for writing an executive summary geared toward a restaurant business plan.
> You want to give the reader (a potential investor) the basics of your business idea. What is the style of your new restaurant, the name, the location?
> Explain why you are well suited for this restaurant venture. Do you have previous cooking experience in restaurants? If not, do you have any experience in the restaurant business? If the answer is no, then you need to sell them on the idea that despite your lack of experience, you are still the perfect person for this new restaurant business.
Step n°2 |
This part of a business plan is sometimes referred to as a business analysis. It tells the reader the location, legal name and style of restaurant you want to create. This is where you get detailed and explain your local competition, population base, and other information you have gathered during your research.
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