Devising a business plan for the opening of your restaurant is all in the details. Sure, it is about the actual bricks and mortar of where your restaurant will be located, the tangibility and appeal of the décor, the arrangement of the tables and the design and layout of the bar … But it is also about the “construction” or template of the business plan: A solid plan on paper to not only make your vision come together in an organized way, but a plan to make your restaurant dreams a reality with a roadmap for success.

One key mantra to keep in mind is that business is business. Of course, all restaurant owners and operators want the same thing: to serve great food to a packed dining room filled with happy guests every night.

But if the business plan doesn't work for you from beginning to end, the only thing you will be left with is the dream of serving great food, and seeing a full dining room. If your plan isn’t in order, you won’t be taking any orders.

Does a business plan have to be perfect from the onset? No. But it does have to encompass key elements to make it work. The best business plans are working documents that are constantly evaluated and consistently evolving.

The Concept. A good plan starts with a great vision. A successful concept development is two-fold: First, put your vision into one, succinct mission statement to encompass your inspiration, the look, feel and experience you want to convey. Next, expand upon the mission statement to develop your brand concept – from menu offerings to color scheme to seating to floor plan.  

The Brand. Your mission statement will be used to develop the brand. Your brand enhances and further explains the details of your vision. All elements flow through the brand – like a coffee filter. Everything should pass through your brand filter; not only your vision and inspiration, but also operational strategies, points of difference, logo, identity and menu fonts/design, the creation of marketing, promotional outreach and social media initiatives, and more.

The Business Model. This is also known as ‘The Money.’ Remember: Business is Business. Realistic financials and fact-based budgeting is key. And it all starts with a successful capitol raise. Obtaining the money you need to open (and stay open) starts with a solid financial business model that will attract investors. Business plan financials should include a general outline of your operating systems budget and expected financials, such as rent and utilities, food costs, capacity, salaries, insurance, and even a conservative growth plan.

The Experts. If writing a restaurant business plan is not your forte, hiring a professional, experienced restaurant consulting team to guide you is worth the investment. Look to be part of the collaborative process so that everything that’s in your head and vision is heard and documented. Your goal here is to construct a business plan tailored to your vision, not anybody else’s. 

Once the business plan is put on paper, it will be used as the model to create an engaging and detailed, yet succinct presentation that not only supports but also mirrors your business plan. Think of the presentation and the execution as another opportunity to engage, enlighten and impress your audience – and put your dream on display!

In the end, can a business plan be tweaked to suit your needs and the needs of investors, employees and/or guests even after opening night? Yes! It’s a fluid document that evolves as the reality of your business evolves.

To be successful, a restaurant is always a work in progress. But setting the foundation with a solid business plan will give your business the strength to grow.

BizPlanIt is pleased to announce a suite of new small business services aimed at providing entrepreneurs and owners with quick access to the business planning tools they need to help fund and launch their ventures. 

The new service offering, called 'BizPlanIt Express', is an easy to use Business Plan Writing Service that was developed by BizPlanIt to serve as an alternative to the traditional do-it-yourself business plan software solutions and as bridge to the high-cost option of having an industry specific consultant write a business plan for you from scratch.

The New BizPlanIt Express Business Plan Service utilizes a proven business plan outline and a proprietary “common sense” interview styled questionnaire that is designed to extract key data in less time than more traditional methods. The result is a remarkably custom and very affordable business plan that can be completed with limited involvement from the business owner yet delivers an amazing level of detail about the specific business.

BizPlanIt's Chief Marketing Officer, Andrew Bloo, explains that the new initiative focuses on helping business owners build more value in less time for their businesses while easily communicating that value to bankers, lenders, investor and partners so that they can achieve their full potential today. In a nut shell we are building solutions that help small business owners grow their companies with less stress in less time.

For those still looking for a do it yourself solution BizPlanIt offers simple industry specific templates that help knowledgeable business owners more easily write their own plan. BizPlanIts latest templates called QuickStart Sample Business Plan Templates, based on BizPlanIts proven business plan outline, are currently available for dozens of industries with more being added regularly.

Learn more about our Express Business Plan Writing Services and then schedule a Free 30 Minute Consultation to discuss your company's specific needs.

When a banker is looking at a loan application how important are your financial projections to them? Unfortunately, not as important as your ability to repay the loan!

Most bankers will assume that your projected financials are false, and come up with their own methods and assumptions for predicting future financials.  Rather than look at your financial pro forma, bankers are going to look at 3 other financial areas that relate to your ability to secure a loan.

1.  Past Cash Flow - At the end of the day the bank wants to know that your business is going to generate enough cash flow to make the monthly loan payment.  The best way to determine this is by your past financials, not your projections.  If your monthly loan payment will be $800, and your business generates $2,600 in positive cash flow in the average month, then you are in good shape to be able to take on this new debt.

2.  Personal Finances - Banks want to make sure your personal finances are in order.  Do you have another source of income to provide for your family?  That way if the business has a bad month you won’t have to decide between taking a paycheck to put food on the table and making your monthly loan payment.  Lenders want to make sure that your Global Cash Flow picture looks good which includes both personal and business finances.

3.  Use of Loan - Finally, your banker is going to look carefully at how you intend to use the loan.  In general the loan needs to pay for itself.  So either the loan helps you increase revenue by more than the monthly payment, or it helps you increase efficiency and decrease expenses by more than the monthly loan payment. If the loan use does not increase sales or decrease expenses, the finances just don’t make much sense from a banker’s point of view.

Financial projections are incredibly important for you to understand, they help you manage cash flow, determine the potential of the business, and may attract potential investors, but when it comes to your loan application they just don’t matter as much.  If your past cash flow from the business, personal finances, and the use of the loan funds all make sense financially, then you are much more likely to be approved than if you only had an exciting set of projections.