So, you’re finally getting started on your lifelong dream of having your own restaurant! Congratulations! It’s a huge step, to be sure, and you are in for a rewarding and hopefully profitable experience.
But before you get started, you have to lay the foundation for what will hopefully become a successful venture. Apart from getting restaurant insurance, you need to get your finances in order and formulate a restaurant business plan.
What is a restaurant business plan?
As the term suggests, a restaurant business plan is essentially a blueprint or roadmap for how you will operate your business. It details the main objectives of your restaurant business, its approach, target market, and other important factors that will shape its direction and influence how you will run it.
A restaurant business plan may also include information about the people involved, financial objectives, and other details that the owner and investors might find relevant.
Why a restaurant business plan is essential
Formulating a restaurant business plan will enable you to map out your restaurant’s progress and development. It gives you a clear picture of how you can make it grow from the initial concept to a profitable business.
A restaurant business plan also communicates your business direction to your partners and investors. This helps them understand how you plan to manage the restaurant and ensure its financial viability.
Putting together a restaurant business plan will entail considerable research and planning, of course. It may seem like an inconvenient and unnecessary step for some owners, especially with all the hard work involved in getting the business started.
But planning how to run your restaurant is essential for profitability and eventual success. It gives you a clear path to follow and helps you avoid common mistakes that plague many restaurant businesses. By having a definitive and well-thought-out plan in place, you can considerably reduce the margin of error and increase the likelihood of having a successful business.
What your restaurant business plan should include
Business plans can vary depending on the owner’s goals and the nature of the business. But certain essential points should be covered in any restaurant business plan, including:
- Concept
Every restaurant is based on a concept. You should have a fairly clear picture of what kind of restaurant you want to have, including the type of services you will offer, the culinary style, the atmosphere and décor of the place, and so on. Getting your concept down on paper will also encourage your potential partners and investors to get on board with your venture.
- Menu
The menu is a large part of what will make your restaurant successful. This should be tied in with your concept and cater to the needs of your target customers.
When putting together a sample menu, try to make it as close to an actual menu as possible, with a full range of appetizers, entrees, sides, desserts, and drinks included. This will help you determine the viability of your choices so you can make adjustments as needed.
- Personnel and management team
Your team is another integral element to your success. Before you begin hiring staff, you should have a clear idea of what positions need to be filled and how many people you need to hire. You should also decide on a management structure that will enable you to run your business efficiently.
- Target market
What type of customer will your restaurant cater to? Who do you expect will frequent your establishment? Do you live in a college town with a large population of young people? Or is your potential market more the older dinner-and-theater crowd?
Defining your target market will help you tailor your business to their needs. It will also help you fine-tune your approach to better match their sensibilities and preferences.
- Market analysis
Part of your business plan should include market analysis. You should have a clear picture of the market you are entering and the niche you are filling. Ideally, you should offer a service that the community needs and that no one else is providing. This will help ensure that you can corner a significant portion of the market.
- Finances
Finally, plan out how much money you will need to start up your business and keep it running. You need to have a way to keep your business afloat during the initial stages until it begins to turn a profit. After that, your plan should show how you intend to manage your finances to ensure the restaurant’s continued profitability. This is especially important if you plan on enticing investors.
Putting together a restaurant business plan will greatly increase your chances of success. Take some time to iron out the details and cover every possibility, and you could one day have the restaurant you have always dreamed of.
About Blue Sky Insurance Agency
For over 20 years, family owned Blue Sky Insurance Agency has proudly specialized in insurance and tax services for Virginia residents. Our philosophy is simple: “If you can dream it, we can insure it.” We strive to provide value to our clients by establishing and building relationships and focusing on more than just rates. We are dedicated to providing holistic and strategically tailored solutions to protect all of your assets, and to provide peace of mind wherever life takes you. To get in touch with us, fill out a complimentary quote form, or call us at one of our two locations:
North Chesterfield
Phone: (804) 745-4044
PO Box 35674
North Chesterfield, VA, 23235
Hours of Operation: Mon-Sat 9am-6pm
Richmond
Phone: (804) 404-2030
9932 Midlothian Turnpike
Richmond, VA, 23235
Hours of Operation: Mon-Sat 9am-6pm