- Mention Your Concepts, The Menu, & The Design
- Mission Statement
- Expenses of Restaurant
- Marketing Plan
- Business Plan
- Restaurant Management
Starting a restaurant business is not always an easy thought to entertain. Imagine the fear you have before you start a project, only add the concerns of funding, employing others, and appeasing investors. However, just because the fear is present, it doesn’t mean that you should allow it to stop you from doing what you want to do. For soon-to-be restaurant owners, among the best ways of doing so is to write your own restaurant business proposal.
By having a detailed plan, you can ease not only your own fears, but also that of others. Investors will be less keen in your ideas if they don’t see you doing your homework about them first. Without investors, your options to raise funding will be lessened and the road to success will be tougher to travel on. So if you want to make things easier for yourself and everyone else involved, take a look at what we have to say about writing your own restaurant business proposal.
Mention Your Concepts, The Menu, & The Design
When coming up with a restaurant proposal, you need to think of three specific parts of your business. First, there is your concept. After that comes your restaurant’s menu. Lastly, there are your designs for the physical aspect of the restaurant. Take the time to develop each of these three as you go about creating your business proposal. Below is a much deeper look at each of them:
When it comes to having your own restaurant, the first thing you need to accomplish would be the act of choosing a restaurant concept. This will be the foundation upon which you will build everything else. When exploring your ideas, feel free to be as specific and creative as you can. As long as it is something you can realistically achieve, you have as much free reign to do as you wish.
With your concept established and spelt out for investors to see, the natural progression would be to proceed to your restaurant’s menu. A key reminder to keep in mind is to ensure that it fits well with your chosen concept. Do your research before preparing a restaurant menu so that you can properly compete with your competition, set reasonable prices, and give yourself new ideas for dishes.
An interior design proposal is important because it provides people with an idea of what the physical aspect of your restaurant will look like. Remember that your environment can substantially raise the ambience of your restaurant if you do it right. When designing the restaurant, keep your budget in mind and take note of any potential or underlying problems that you may have. Include the solutions in your proposal so that you can ease concerns swiftly and to show how capable you are in pulling this off.
You may think that your business plan is the most important part, but your mission statement would beg to differ. After all, this is the essence of everything that your business stands for, expertly summed up in just a few sentences to say the least. Through this, you get to express what you’re all about to your employees, your customers, and everybody else. When crafting out your mission statement, be sure to include the following:
- What type of products or services you have to offer and their respective prices
- The technological aspect of the restaurant
- Your relationship with your customers, or the type of relationship you want to cultivate
- What you are looking to bring to the table within the community
Keep all of this in mind and you’ll be on your way towards creating a mission statement you can be proud of. During times of need, especially when inspiration and motivation are sorely lacking, a mission statement can be an excellent source of both. Make sure that your own is something that not only inspires and motivates you, but also those working for you as everybody continues to strive towards the same goal of excellence.
Expenses of Restaurant
They say you need to spend money in order to make money. This is true for all businesses and as a restaurant owner, you need to be fully aware of which aspects of the endeavor are going to cost you. Due to the extensive number of expenses involved, it would take far too long to list them all. So instead, here’s a look at some of the more important ones to watch out for.
If you don’t own the lot or space in which you are operating, then chances are you’ll be forking over cash to your landlord so that you can keep renting out the area. This is a necessary evil, one that you need to handle on a regular basis. As your business gradually improves, you may start to distance yourself from renting and move on towards operating in a space that you actually own.
Location Improvement Cost
Not every area you rent out will look impressive from the get-go. As a matter of fact, many of them will need some improvements in the form of renovations or repairs. This is not only time-consuming, but also quite expensive, depending on how much work is needed. Make sure to take this into account when scouting for potential locations.
Loyal and competent employees aren’t the easiest to come by and keep. When you come across them, it is only fitting to make sure that they are getting paid well for their hard work. You wouldn’t want to create disgruntled employees by being stingy or reckless with their hard-earned money, so labor costs must be handled with absolute care.
Repairs & Maintenance Cost
In time, all things will start to show some wear and tear. When you notice this happening to your equipment, you’ll be forking over more money to repair them and ensure they’re in tip, top shape. If you want to lessen the costs of repairs, it pays to maintain your equipment better and to take note of when they start to break down. By taking care of them better and learning what to expect, you’ll be less likely to face any surprises.
All in all, a lot goes into administrative costs. Insurance will come into play, office supplies will too, along with legal counsel, the salaries of staff, and more. Considering how big and diverse of an umbrella this can be, it pays to be aware of your own operations as much as possible.
When you say operations, a lot can also come into mind. Food costs are definitely among them. Basically, expenses involved in the day-to-day aspect of running the restaurant will fall under this category. Prepare yourself by taking note of your inventory, what’s missing and what needs to be restocked. Pay close attention to the smallest details because even those, when piled up, can lead to significant numbers.
Marketing & Advertising Cost
Lastly, there’s the expenses needed where it concerns the marketing of your business. This includes cost analysis of market research methods and various others. Unlike repairs and operations, how much you spend on this is entirely up to you. Establish a budget beforehand and try not to go overboard as you go along.
Concerning the funding, the preparation of an investment proposal is crucial if you want to attract potential investors. The development of a good proposal needs advanced planning, strong knowledge of your business, writing ability, and some know-how in accounting. When writing, it is also best to keep certain questions for your investors in mind:
- Will your restaurant keep their investment safe?
- When will they see their ROI?
- How much money is the restaurant projected to make?
You’ll need to include a history of your restaurant in the proposal, along with details regarding the funding. This involves specifying the investment level needed and how it’s going to be used. Be sure to also add information about your facilities, your products, the competition, staff, mission and objectives, your projection for your finances, and more.
Writing a marketing plan is all about what the company needs presently. Tailor your research and strategies based on realistic, measurable, and executable goals. Once you have done just that, it is just a matter of monitoring the results of your efforts. By doing so, you get an idea of what works for your business and what has failed thus far. Concerning more specific examples, here’s what you can do:
Consider the current situation of your restaurant so that you can analyze every necessary aspect. Take note of your strengths and weaknesses; the opportunities available to you and any threats to the business. Define your ideal customers and what your goals are. Once there, focus on coming up with tactics and general strategies that are achievable with your budget in mind. Be sure to focus on the present and don’t look too far ahead in this stage.
The successful implementation of your marketing plans has a lot to do with delegation and time allocation. Set tasks for yourself or employees to do. With clearly defined expected results and an established timeframe, the implementation should ideally go smoothly enough to begin being evaluated properly.
When it comes to the evaluation, there are a few ways to get started. One is by looking at the ROI. Measure how much you spent on each marketing campaign and compare it to the amount that’s been specifically brought in. Another way is to look at how your customers have responded so far. You may resort to online surveys or just doing it in person.
Writing a business plan is all about coming up with strategies and finding ways to execute them in the most effective manner. As a restaurant owner, you’ve likely had experience in this department, but there are always opportunities to improve. Here is a list of do’s and don’ts that you are bound to find useful.
Do’s & Don’ts of Writing a Business Plan
- Research Extensively: Look into every aspect of the business as needed: define your goals, clarify your concepts, and plan out your budget, and structure everything in between. Take a look at your competitors and establish what your ideal customer is like. Actively researching will give you a greater edge in the market, especially if you do so in ways that are as specific as possible.
- Cite your Sources: Regardless if you conducted surveys, read studies, or scouted the competition, it will make your plans more credible to have sources.
- Appeal to Emotions: As important as logic is to your business plan, there has to be an appeal to emotions as well. This is done through the use of examples, anecdotes, and the like.
- Show your Understanding of Market Demand: It is vital to show how much of an understanding you have when it comes to your economic environment. Potential investors would be happy to know how carefully you’ve considered influences in the market, which are responsible for the rise and fall of demand.
- Address Risks: The riskier aspects of your restaurant are what investors are likely to steer clear off the most, so it is best to address them. Don’t stop there, be sure to have ready solutions for said risks so you can put people at ease.
Use Too Much Text: A useful tip when coming up with your business plan is to keep things simple. People are less enthusiastic about business plans when it is sprawling with text. Instead of overdoing it, make use of pictures, diagrams, numbers, and other things.
- Underestimate your Competitors: Your investors are well aware that despite how good your ideas are, customers will always have alternatives. Never take your competition for granted and examine their strengths and weaknesses. Proper preparation and analysis are key to anticipating and countering their moves.
- Overlook your Resources: Always keep an eye out for your resources. Look into how much you will possibly need for your restaurant and whether or not you will need partnerships or funding.
- Overlook your Execution: Think about how much time and effort it is going to take to shape your restaurant into an ideal establishment. Consider how the plan will better attract customers in the most reliable and cost-effective way. Never neglect the execution of your idea over the idea by itself.
- Put All your Focus on the Product: Don’t spend too much time worrying about your dishes. Focus on your restaurant business as a whole. Know that at some point, you’ll have to change things so focusing too much on specific products won’t get you anywhere.
There will be a myriad of things that constitutes the running of your restaurant. From meeting with directors to creating your own management policy, the ins and outs of management will depend solely on all your previous choices. With that said, here are things that will be of use to you as you go about your day-to-day duties:
Always Consider the Customer
You’re surely aware of the saying, ‘the customer is always right.’ Regardless of whether you agree with it or not, how you handle complaints and issues with consumers is a large part of your relationship with them. It can determine whether or not they’ll be repeat customers or one-offs.
Articulate your Job Expectations to your Staff Clearly
Communication is key in any relationship and your dealings with your staff is no exception. It is up to you to be clear about what you expect out of their roles. This not only promotes transparency within your establishment, but it can also help your staff become more competent.
You may find yourself tackling multiple roles behind the scenes, but you won’t be able to do everything on your own. Being able to delegate roles properly and to the best suited people for each one is practically an art in itself. Do this and you’ll see your restaurant grow and evolve in the best ways.
Keep an Eye on your Cash Flow
Never neglect your operations and management spreadsheets. Monitor them as much as needed, be it on a daily, or weekly, or perhaps even on a monthly basis.
The lack of innovation can lead to major problems in a restaurant. You can do this by changing up the menu every now and again, providing limited promotions and services, among other things.
By going over your business plan, restaurant templates and documents, you can see just what type of establishment you’ve got. All of its strengths and weaknesses will be laid bare, enough for you to determine which part needs more attention or improvement. Going over these things is important in order to create the best business proposal possible. Once investors see how keen you are and how much attention you give to your restaurant, there should be no problem in acquiring the funding or partnership that you need.