Business Plan for a Restaurant - Table of Contents Continued

Sections 5 - 8 of your Restaurant Business Plan Table of Contents

We've broken down the steps for you to write your own unique business plan in another post and this one will include the rest of the table of contents we find most helpful to lenders. Hopefully, you've already started working on your own plan using the prior post but, if not here it is if you need to refer to it.

Let's get busy with sections 5 - 8 now!!


Competitive Analysis

     Direct Competitors - use this area of your business plan to let your potential lenders know that you recognize your competition! With the help of the internet, these days it's easier than ever to search your local competition as well as the surrounding areas. Include other restaurants - locally owned and chains - clubs, diners and other businesses that also offer food to customers such as church events, festivals and even theaters. Note how you plan to compete in the food service industry after knowing your competition.

     Indirect Competitors - some of your indirect competition in a restaurant includes the internet, cooking shows, grocery stores, local markets and festivals to name a few. If possible, explain here what you plan to do to offset this type of competition in your business. Oftentimes, if you can't beat 'em, you can join 'em so you may want to sign up for some of the carnival, festival events in your area to let the public learn more about you and your business.

     Competitive Advantage - explain in this part of your restaurant business plan how you plan to successfully compete and why you can! What will you offer that is different from the rest and makes you stand out? It could be live music, karaoke with your own special twist, a unique menu item, cooking lessons, superior service, skilled and professional staff, key customer relations you have or plan to have, catering, knowledge of marketing or working closely with the hotels. List all of these items separately as they deserve special mention and can show your lender why you can and will succeed in a restaurant business.
     ** Note - most restaurants fail within the first 3 - 5 years in business so this competitive advantage section is important to take some time with on your business plan!

Marketing Plan

     Products and Services - this should be a fun and easy section of your restaurant business plan to fill in. This is one of the reasons you are starting a restaurant! YOUR FOOD! Explain in detail for the lender how your food is different, special, unique, must have, can't live without, draws customers in and makes them talk about you! Share in this section how you'll use your own special recipes, work with vendors for special ingredients (or the local markets), use only fresh or seasonal ingredients, etc. You must be honest in this section too! Put your own thinking cap on and decide what it is you do or will do with your products and services to make them stand out.

     Promotions and Partnerships -use this section of your business plan to list how you plan to promote your business and include items such as radio and television, newsletters, flyers, working with your vendors, colleges, hotels, theaters, local community groups and other businesses.

     Future Growth - while it may be difficult now to predict your future growth of your restaurant, it should be something you consider and include as part of your business plan to attract a lender. Include in this section items such as adding more specialty wines or alcohol to your menu, cooking lessons, coupons, in house items made from scratch, increased catering, writing your cookbook, getting on a television show or any other ideas you have for your future.

Operations Plan

     Describe your operations plan of your business here by providing examples of your decor, the ambiance of your restaurant, dining areas, bar seating (if indeed you'll have a restaurant with a bar), your menu, your pricing, your hours of operation, your policy and procedure manual (we'll describe this in depth on a future post) and how it will help you to keep and control staffing issues, your uniform design for staff, any special music or events you'll routinely host, your primary vendor for purchases, other vendors you'll do business with, any long standing relationships and anything else that sets your restaurant idea apart from the rest.

Financial Plan

     The nuts and bolts of your business is this very important part of your business plan and potentially the only part that your prospective lender will want to see! They won't lend you money without seeing how you plan to pay them back!

     First Year Financial Projections

          Break it down into Breakfast, Lunch, Dinner, Banquets or any of those times you will be opened and serving food.
          Create a breakdown of how many covers per day/ check average/daily total of sales/ monthly/yearly based on your hours of operation.
          Once your have your columns totaled, deduct your net cost of doing business and end with a final NET PROFIT per year.

     Projected Monthly Debt Service Repayment
   
          Add your current liabilities to your debt to bank or other lender for a total figure that you will be able to pay back to the lender and still pay all other debts and stay in business.

Hope this helps you, we'll include more information regarding financial statistics history, assets and liabilities,
for you soon but, for now you must get busy writing your restaurant business plan.

Please feel free to comment below. Cheers!