Calculating Assets and Liabilities for your Restaurant Business Plan

Anatomy of a Business Plan by Linda Pinson courtesy of amazon

As part of your restaurant business plan, there should always be a section labeled 'Assets and Liabilities' so that your lender can see what you own, have, owe and will need to obtain their loan.

This section will take some thought since most of us don't have a journal of all our assets. You will once you create your own business plan. Restaurant loans are one of the most difficult to obtain, banks simply don't want to be in the restaurant business if yours fails and at least 3 out of every 5 do fail, sadly. Liabilities are a little easier to know, find or remember. Your business plan will become a helpful resource to you in your business once you take the time to document your holdings and liabilities and it should also help you to have the proper amount of insurance for your business and your home. Check out Linda Pinson's Anatomy of a Business Plan, voted Best Business Book of the Year, winner of the Ben Franklin Award for step by step instructions.

When creating your list of assets and liabilities use this guide to help you create your columns, it will be easier to read, understand and total the columns:


     Assets                                                                    Value
Cash in checking, savings                                           place a value on all items in this column
IRA
Stocks
Bonds
Mutual funds
Business licenses you own
Inventory of your food/liquor or other product sold
Security/surveillance system
Kitchen equipment: coolers, freezers, work stations, tables, scales, mixers, knives, cutting boards, serving trays, chafing dishes, pots, pans, utensils, cookware
Office equipment: point of sales system, computers, printers, fax, phone, desks, chairs
Bar equipment: coolers, draft system, soft drink system, glassware
Serving equipment: espresso makers, coffee makers, cappuccino machine
Dining room furniture
Dining room serving dishes, flatware, glassware, bar ware
Art work
Books
Collectibles
Tools
Commercial cleaning equipment
Any other business equipment you own particular to your needs such as outdoor seating area, dance area, banquet area, bar area etc.
Home
Home furnishings
Land
Autos
Silver, Gold or other precious metals, Coins
Any other personal items you own that could assist you in obtaining financing from a lender

     Liabilities                                               Current                              Expected
Rent or mortgage of restaurant
Loans
Business credit cards
Other credit cards
Utilities
Insurance - business, life, health, auto
Auto payments
Payroll
List of vendors and balances you owe to each
Taxes - federal, state, local, sales, real estate
Any other liabilities you currently have if you are already in business or expect to have with your new restaurant business
Home mortgage, taxes

This list of assets and liabilities should help you and your lender to have a clear idea of what you have and owe to determine your financial ability to pay off your newly acquired debt from a restaurant.
Best wishes creating your lists, let us know what questions you have in the comments section so that we can help you.
Before you leave, check out our home page for more information that's bound to help you run your own successful restaurant/bar.

Until next time, Cheers!