By creating a business plan you should substantiate that your venture will generate adequate income to cover the costs and make a sufficient return for the investors. While it takes a lot of time to complete a business plan, it is surely going to give you a clear picture of how to establish your project and ensure that it succeeds. Your business plan should convey a lucid and logical structure, show profitability, and must come in clear and concise writing. To create a restaurant business plan, consider the following items.
- Determine the type of restaurant you are planning to start. Will it be a fast food diner, a fine-dining restaurant, a franchise restaurant, etc? You need to have a clear concept so you can begin putting your restaurant business plan into writing.
- Prepare a market analysis. Who are your target customers? Determine why they would prefer your restaurant over your competition? Speaking of competition, who are they? Find out about their customers, menus, prices, operational hours, and so forth. Determine how you can compete with your competition that are already in the industry for a long time and already hold a loyal customer base. What strategies do you have to reach your target customers? Will you be using TV, radio, newspaper, and the internet? Indicate what particular approach you intend to take advantage of in order to promote your restaurant.
- Determine the location of your proposed venture. You will have to conduct a demographic study of the surrounding area in order to determine how the location can play a huge role in the success of your restaurant. Is it going to be situated in the downtown area? Will there be huge foot traffic? Are you going to rent your business location or purchase a building for your restaurant?
- Determine how you will run the business. Who will man the operations? Who will be the manager, cashier, chef, and waiter? How many people do you need to hire to run the establishment? Identify the responsibilities and who will particularly handle them.
- Know how much your proposal is going to cost. How much do you need for the building, operational equipment, manpower, marketing, and preventive maintenance among others? Where you will get the funds is highly critical to the realization of your proposal. Are you going to finance it yourself, borrow money from family and friends, or get a loan from a bank? Will you consider partnership or a small private corporation? You will have to project the overall expenses against your projected business profit.
Review your draft before you start rewriting it in a correct manner or sequence. You may tailor it according to the requirements of your target audience. While you have the option to hire a professional consultant to create the business plan for you, you will find that doing it yourself is worth the time and effort as it will help you understand better why you want to be in this type of industry in the first place. Another alternative which is highly beneficial and can provide you resources for creating a winning business plan is the Small Business Administration (SBA). The SBA can assist you in getting all the information and advice you need.