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The Essentials For
Preparing A Business Plan For Future
Growth Opportunities
If you
plan on opening a new restaurant,
bar, club or other business it is
essential that you prepare a
comprehensive business plan. A
business plan is necessary for
raising money from investors,
getting third party financing and/or
getting approval from a prospective
new landlord to lease a new space.
The essentials of a business plan
should include the following:
1) summary of the concept, 2)
demographic study, 3) operational
and financial information on the
principals and 4) financial
projections.
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Summary of Concept
This includes a definition
of the physical characteristics
of the operation discussing the
format of the operations ( full
service, self service, take out,
etc.) and the type of operation
( i.e. breakfast/lunch, Italian,
Mexican, deli, etc.) and whether
alcohol will be included and if
so the projected sales of
alcohol compared to food sales.
Other items include a definition
of who are the customers, number
of seats, square footage, hours
of operation, licenses needed, a
copy of the menu including
pricing and sketches and floor
plans for the business.
-
Demographic Study
This includes a definition
of the trade area of the
business which is the distance
the customer will travel to come
to the business. For example the
trade area draw for a
neighborhood breakfast & lunch
operation only may be a 1 mile
radius whereas a popular dinner
house operation may have a trade
area draw of up to a 30 mile
radius. The demographic study
will give you the following
statistical information within
the trade area you are studying:
total population, population
broken down by age, household
income, per capita income,
ethnic mix, education levels and
how much money is spent for food
away from home, etc.
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Operational and Financial
Information on the Principals
This includes personal
financial statements, current
credit reports, 2-3 years most
current tax returns and resumes
on each of the principals of the
business. Also included in this
section are the resumes of the
key management personnel for the
business.
-
Financial Projections
Included in this section
should be the following:
-
The
projected guest check
average per person for each
meal.
-
A breakdown of the food
sales based on in house
sales; take out sales,
delivery sales, banquet and
catering sales, if any.
-
A projected source and use
of funds schedule including
where the money is coming
from (i.e. bank loans,
investors, etc.) and a
detail of the use of funds.
Make sure when allocating
the use of funds you include
the following categories:
purchase price, remodeling
costs, deposits, marketing
costs, training costs, rent
during remodeling period and
most important a reserve for
contingencies (at least six
months payroll).
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A projected Income and
Expense Statement for a 5
year period. When making
projections use conservative
assumptions as there are so
many things that can go
wrong when running a
business.
A well
put together business plan will give
you the opportunity to fine tune
your business, approach investors
and landlords as opportunities
present themselves and enhance your
chances for success.
DISCLAIMER
Jacob Zimmerman and Restaurants For
Sale Online assumes no
responsibility for decisions made by
buyers, sellers or other parties to
any transaction. Information has
been provided based on experience
and research. The results of various
articles and studies reflect such
information. Restaurants For Sale
Online assumes no responsibility for
pricing or recommendation of pricing
to any of our users. If you are
interested in buying a business or
piece of real estate, Jacob
Zimmerman and Restaurants For Sale
Online, LLC recommends you do your
own due diligence to verify the
source of any information provided
to you by a seller and/or
intermediary. If you are interested
in selling your business, Jacob
Zimmerman and Restaurants For Sale
Online, LLC recommends you contact
an intermediary that specializes in
transactions similar to the
respective business or real estate.
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