Opening a Restaurant or Other Food Business Starter Kit: How to Prepare a Restaurant Business Plan & Feasibility Study

by Fullen, Sharon L.

• ISBN13: 9780910627368
• ISBN10: 0910627363
• Edition: CD
• Format: Paperback
• Copyright: 2004-12-30
• Publisher: Atlantic Pub Co

Summary

Restaurants are one of the most frequently started small businesses, yet have one of the highest failure rates. Survivors need a powerful strategic advantage: a sound business plan and feasibility study prior to opening. A new study from The Ohio State University has found the restaurant industry failure rate between 1996 and 1999 to be between 57-61 percent over three years. Don't be a statistic on the wrong side, plan now for success with this new book & CDRom package. A business plan precisely defines your business, identifies your goals, and serves as your firm's resume. The basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs personnel, suppliers, and others about your operations and goals. Despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business plan to be useful or that they just don't have enough time. But just as a builder won't begin construction without a blueprint, eager business owners shouldn't rush into new ventures without a business plan. The Cd Rom will cover the following subjects: Elements of a Business Plan, Cover sheet ,Statement of purpose, The Business, Description of The Restaurant, Marketing, Competition, Operating procedures, Personnel, Business insurance, Financial Data, Loan applications, Capital equipment and supply list, Balance sheet, Breakeven analysis, Pro-forma income projections (profit & loss statements), Three-year summary, Detail by month, first year, Detail by quarters, second and third years, Assumptions upon which projections were based, Pro-forma cash flow, Supporting Documents, For franchised businesses, a copy of franchise contract and all, supporting documents provided by the franchisor, Copy of proposed lease or purchase agreement for building space, Copy of licenses and other legal documents, Copy of resumes of all principals, Copies of letters of intent from suppliers, etc.

Table of Contents

Introduction
Your Elevator Pitch	10	(3)
What is a Business Plan?
Why Do I Need a Plan?	13	(2)
How You Can Benefit	13	(2)
Great Risks, Great Rewards	15	(1)
No Profits, No Reason	15	(1)
Who Should Review Your Business Plan	16	(1)
Other Outside Advisors and Consultants	16	(1)
Who Will Use Your Business Plan	17	(1)
Confidentiality/Non-Disclosure Agreements	17	(1)
What Interested Parties Should Find in Your Plan	18	(7)
Your Family	18	(1)
Your Partners	19	(1)
Your Lender	19	(3)
Your Investors	22	(1)
Your Partners	23	(1)
Your Employees	23	(1)
Your Suppliers	24	(1)
Who Should Write Your Business Plan?
But I Only Want to Be a Restaurateur	25	(8)
Web-Based Advice	26	(1)
Business Plan Classes	26	(1)
Local Classes	27	(1)
Online Classes	28	(1)
Teleclasses	28	(1)
Seminar Workshops	29	(1)
Software-Specific Classes	29	(1)
Books	29	(1)
Software Programs	29	(4)
Hiring a Business Plan Writer
What It Will Cost You	33	(1)
Searching for a Business Plan Writer	33	(5)
Tell Them What You Need	34	(1)
Tell Them What You Want	34	(1)
Tell Them When You Need It	35	(1)
Tell Them What Resources You Have	35	(1)
Write an RFP	35	(1)
If I Could Only Write an RFP	35	(1)
Contracts and Agreements	36	(1)
Confidentiality/Non-Disclosure Clauses	36	(2)
Business Plan Software
Too Good to Be True	38	(1)
Try Before You Buy	38	(1)
Your Software Choices	39	(3)
Accounting Software	39	(1)
Word Processing Software	39	(1)
Spreadsheet Software	39	(1)
Presentation Software	40	(1)
More Free Templates	40	(1)
Business Plan-Specific Software	41	(1)
Popular Business Plan Packages	42	(6)
Stand-Alone Products	42	(3)
Template Products	45	(1)
For Mac Users	46	(1)
Online Planning	47	(1)
Still Don't Know What to Buy?	48	(5)
What Does a Good Business Plan Contain?
Standard Business Plan Format	50	(3)
Cover Page	53	(1)
Table of Contents	53	(1)
Executive Summary	53	(1)
Background Information	53	(2)
Personal Resources	53	(1)
Financial Resources	54	(1)
Business Concept	55	(5)
Mission Statement	55	(1)
Business Goals and Objectives	56	(1)
Short-Term	57	(1)
Long Term	58	(1)
General Description of Business	58	(2)
Description of Products/Services	60	(3)
From Your Lists to Your Plan	62	(1)
Management Structure and Organization	63	(7)
Your Management Team	65	(3)
Your Key Personnel	68	(1)
Outside Support	69	(1)
Management Philosophy	69	(1)
Organizational Chart	70	(1)
The Next Three Big Sections	70	(1)
Coming to a Conclusion	70	(1)
Support Documents	71	(5)
Let's Jump Back	72	(3)
Writing a Feasibility Analysis
Hiring a Study Consultant	75	(1)
Preparing Your Analysis	75	(1)
Concept Analysis	76	(2)
Location Analysis	78	(7)
Have Concept, Need Location	80	(1)
Have Location, Need Concept	81	(1)
Should I Buy Someone Else's Restaurant?	81	(4)
Execution Analysis	85	(8)
Fine-Tuning Your Idea	85	(3)
Financing Needs	88	(1)
Does It Make Good Fiscal Sense?	88	(2)
Capturing Your Fair Share	90	(1)
Problems and Solutions	91	(2)
Entrepreneurs Aren't Superheroes	93	(3)
Not Enough Strength	96	(1)
Do I Need It and Can I Afford It?	96	(4)
Do-It-Yourself Feasibility Studies	100	(2)
Writing Your Feasibility Analysis	100	(1)
Your Software Can Help	101	(1)
What to Do if the Answers Are Negative	102	(3)
Your Marketing Plan
Market Analysis	105	(2)
The Food Service Industry	105	(2)
Your Territory	107	(1)
Your Location	108	(2)
Your Competition	110	(1)
Your Customers	111	(3)
Your Ideal Customer	111	(1)
Your Customers' Needs	112	(1)
Establishing the Need	113	(1)
Your Solutions	114	(12)
Your Niche	116	(1)
Your Pricing	117	(1)
Your Brand	117	(1)
Your Outreach	118	(3)
Developing Your Advertising	121	(1)
Advertising Budgets	121	(5)
Financial Data
Your Financial Management Plan	126	(5)
Starting-Out Needs	127	(1)
Operating Budget	128	(2)
Loan Application	130	(1)
Capital Equipment and Supply List	130	(1)
Crunching More Numbers	131	(6)
Balance Sheet	132	(1)
Break-Even Analysis	132	(2)
Income Projections	134	(1)
Pro-Forma Cash Flow	135	(2)
Researching Your Business Concept
Researching Your Market and Competition	137	(1)
Location, Location, Location	138	(1)
Location = Customers	138	(1)
Building Your Own	139	(1)
Buying an Existing Business	140	(5)
Buying Costs	141	(4)
Leasing Space	145	(17)
Geographically-Based Research	146	(1)
Observation Techniques	147	(1)
Ask Questions	147	(1)
How Will I Know If I'm on the Right Track?	147	(1)
Getting Organized	148	(4)
Create a Research List	152	(2)
Assumptions Are Not Conclusions	154	(1)
Types of Research	154	(1)
Primary Research	155	(2)
Secondary Research	157	(2)
Ask for Help	159	(2)
The Art of Asking for Research Help	161	(1)
Hiring Research Help	162	(11)
Hire a Financial Expert	162	(3)
Writing Your Plan
Gather Your Data	165	(1)
``Blank Screen, Go Away''	166	(1)
Coping with Writer Anxiety	167	(1)
Writing Formally	167	(1)
Using an Outline Format	167	(1)
The Most Important Advice	168	(5)
Getting Your Plan ``Published''
Making a Great Presentation	173	(22)
Ready to Print	173	(1)
Paper, Please	174	(1)
Holding It All Together	175	(1)
While You Are at the Office Supply Store	176	(1)
Assembling Your Plan	176	(2)
Mini Strategic Plans
Internal Business Plans	178	(3)
Revising and Updating Your Business Plan
Plan B	181	(2)
Keeping Your Plan Fresh and Viable	183	(2)
Should You Rewrite Your Plan?	185	(2)
Business Plan Writing Resources
Accounting	187	(1)
Advertising	187	(1)
Books, Magazines and Software	188	(1)
Business Structure	189	(1)
Feasibility Study Resources	190	(1)
Financial Planning for Restaurants	190	(1)
Food Service Industry Publications	190	(1)
Government Resources	190	(1)
Industry Demographics and Research	191	(1)
Research Methods	191	(1)
Restaurant Owner Support	191	(1)
Small Business Development and Support	191	(1)
Training Classes, Seminars, Workshops and Web-Based Education	192	(1)
Trade Associations	192	(3)
Start-Up Expense Worksheet	195
Sample Business Plan