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This is
arguably the most important part of any start-up venture. It is an exercise in focusing
your ideas for the business and taking a comprehensive view of all the factors involved in
its success.
The business plan has two major
sections:
- A body of text describing the various aspects of the venture
- A set of financial statements
The first part takes focused time and effort and is
best done by the principals themselves. We recommend that you give it a try.
The financials are best done with the help of an expert, as they involve complex
legal and accounting principles. This is where Virtual Restaurant can make life easier and
save you money!
To assist you, we have included a free
outline and a demo sample that illustrates most of the considerations necessary for a good
plan. It was inspired by the book
The
Successful Business Plan: Secrets & Strategies by Rhonda M. Abrams, which I
suggest you buy for your project.
Business Plan Outline - A useful
guide for building your plan. In itself a valuable exercise in focusing your ideas and
resources.
Sample Business Plan - A demo I
have put together to illustrate a completed document.
Virtual Restaurant does not, at the present time, write the
text or narrative portion of the business plan for clients. We feel that
this is a part of the project best executed by the prospective restaurant
owner. Please feel free to use the outline and
sample freely to help you create your own.
Financial or pro forma statements. These
are a set of reports that show how you will obtain startup funds, how
they will be spent, and a projection of
your sales and revenue for the first year of operation.
This portion of the business plan is
every bit as important as the narrative and perhaps even more so. If
this part is done thoroughly and honestly, it serves as a valuable and very
accurate tool for predicting financial success (or failure) in the critical
first year of operation. Many projects have not moved forward after a
careful analysis using this tool.
For
this part of the project,
we do not recommend that you do it on your own or even with the help of
inexpensive "shrink-wrapped" software. When I opened my restaurants, I used
very expensive accountants and lawyers to build my financials, and if you do
not buy the package that I am selling, I suggest should do the same. It will
probably cost around $3,000. But with an initial investment of over $100,000
and in an industry that has an over 80% startup failure within the first
year (that's right!), why take a chance with sloppy financial planning?
For $250 (and that
includes an hour of my consulting time to be used as you wish), you
will be able to generate a set of reports that will have bankers, private
investors, management groups and even venture capitalists smiling with
surprise and approval. And most importantly, it will tell you, very
accurately, if you business will be a success.
Please click here for more information about restaurant startup,
business plans, opening, spreadsheets, consulting, management,
marketing & software..
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