5 Tips to Proper Business Planning

Look at your business. Now look at your business planning. Do you have concrete plans in place to ensure continued success? What sets mediocre businesses apart from great businesses is the ability to properly plan their business. Business planning exceeds what you are going to do that particular day. What are your goals are for the entire year and beyond?

Business planning involves an exemplary attention to setting goals. Your goals need to be specific to your business or your organization. Use the following formula to be successful when you’re setting goals during your business planning. Your plans should consist of goals which are specific, measurable, realized, true, and timely.

Specific
Now is not a time to use generalities. You must state the purpose behind your goals. Instead of a goal being, “my business will make money this year for the company”, try “my business will make $10 million this year by aligning profitability with corporate sales metrics.” You notice the specific purpose of the goal versus the vagueness of the goal? Once specifics are out of the way, move to the next step.

Measurable
How will you know if your business is succeeding or failing verses your set goals? Measuring your performance allows you to better align your goals if performance is lagging. Key indicators must be in place to visualize. Your goal is to make $10 million dollars, so an indicator would be financial monthly financial results. If your profitability is not aligned with corporate sales, then you must adjust your strategy.

Realized
During the business planning process you have to account for all external opportunities which may cause you not to achieve your goals. So when you are planning, don’t make goals too lofty as to not attain success. So instead of stating you will make $10 million in a year, try making $833,333 per month. The end result will be the same, but more manageable.

True
Do you want to be known as a leader who can execute plans and deliver results, or a leader who is incompetent and cannot meet company expectation? If you are the leader who values success, then during your business planning you will take into account whether or not your goals are realistic. Seek guidance from peers as well as supervisors if you are unclear of the goals setting process.

Timely
Can you deliver results in the time frame you set up during your business planning? If not, you need to realign your plans. The best laid plans are plans which have a beginning, middle, and an end. Be careful during your business planning not to give too much or too little time to a goal. Both are detrimental to goal achievement. Too much time shows lack of commitment. Not enough time shows you may be conceited.

Business planning is the cornerstone to a successful business. Without planning, you can expect poor performance. Lower than expected performance leaders to you being replaced with someone who will be able to deliver results.

Preparing a Business Plan For a New Restaurant

The preparation of a strong and detailed business plan is essential for a restaurant business for several reasons. Firstly, you will need it to be able to convince others, such as bank managers or investors of the viability of your plans. Secondly, it will be useful to you as the business owner as a place to compile your research findings, set goals and to run some hypothetical scenarios about how the business could run if things go better or worse than expected. Below we have outlined the key components of a business plan for a restaurant start-up.

Executive Summary

This part of the report should only be about one page in length and should introduce the reader to your proposal. Firstly you can set out your personal background and why you are interested in starting a restaurant. Secondly you should include basic details of your proposal such as the location that you have or are looking for, the theme or style of the restaurant, the kind of food that you will serve, whether of not you will be licensed and the type of clientele that you wish to target.

Mission Statement

Take some time to describe the kind of business that you want to be in terms of your business philosophy and values. Think about what you really want to achieve, financially and otherwise. Consider how you want to be perceived in the eyes of your customers and by the local community.

Objectives

Set out a timeline that highlights the goals that you have for the restaurant business in the short and medium term. Gauge your progress and success by setting a variety of targets such as daily and monthly gross sales, percentage of full restaurant capacity reached on a consistent basis, and how long it takes to get the first course on the table from the point that the order was taken for example.

Ownership Structure, Management and Employees

List any people that have an ownership stake in the business and their respective interests. Also set out a management plan so that there are no arguments when it comes to making decisions if there is more than one owner. Estimate the number of employees that will be needed initially and set out a schedule to hire more as the restaurant grows in popularity.

Start-up Requirements and Operating Costs

Set out a comprehensive list of everything that will be needed for the restaurant to start as planned. Try to think of every little detail as you compile a list of equipment, building renovations, other supplies and compliance costs. You also need to estimate the amount that is needed for monthly operating costs and some entrepreneurs will allow for several months of operating costs when they calculate total start-up costs as revenue will be slow at first.

This is also a good part of the report to include details of how the restaurant startup will be funded and the sources of finance that you, as the owner have available.

Location and Competition

Set out your reasons for wanting to locate your restaurant in a specific location. Include details of all local competitors and how you propose to differentiate your restaurant in a way so as to allow you to stand out and compete with them. You should be able to show that there is a local market that is not being met by your competitor’s offerings and suggest ways of meeting this demand. It is helpful here to back up your reasoning with some demographic data or market research.

A Marketing Plan

Marketing is one of the most important factors contributing to the success of a new restaurant. Discuss your target market in detail and how you plan on packaging an experience that suits their tastes in the way of food, music, theme and atmosphere. Give details as to how the dining experience that you create will be branded with a name and a logo and how you will live up to your brands promises and reputation in a way that strengthens your brand over time.

Talk about pricing and include a list of proposed menu items with proposed prices. Consider how your prices will compare with other restaurants in the area and how the value that you offer would be comparable or better than what they have to offer. Estimate what the average customer will spend at your restaurant.

Lastly, set out some methods that you feel could work well for adverting and promoting the restaurant.

Financial Analysis

Set out some financial projections for your first three years in business. Estimate monthly cash flows coming in and out of the business and set these out in a spreadsheet. Change your figures to allow for a variety of different scenarios in the case that things go worse or better than expected. You will then have a fair idea of how profitable your restaurant will be if it runs according to your plans.

Entrepreneurs would be crazy to open a restaurant in the U.S. in the 21st century without a well thought through and researched business plan. A business plan will help your restaurant to get started off right, avoid unnecessary mistakes and to consistently proceed in the direction that you need to go to ensure that your long term goals are met.

Business Start-Up: Pointers for Writing Business Plan

Business Start-Up: Plan your business successfully.

Are you planning to start your own business? What does it takes to have a successful business? Lots of money, experienced business partners or just plain guts!! You’ll be surprised; you just need a good business plan. But what constitute a good business plan? There isn’t any specific rule on good business plan, but here are some precautions that you may consider to avoid failures.

1. Set Company Values through Vision statements. First, you had to have vision for your company. The vision will help you to set-up some values that you want your staff to abide as the company. These values will differentiate you from your competitors. Looking forward, it enhances the growth that will make you proud, someday. Develop a mission statement that will help achieve immediate or minor goals/priorities.

2. Financial forecast and budgeting. Create your own financial forecast and budgeting. It is part of your business plan. Without them you’re planning for failure. But your plan should also covers competitor analysis, market conditions including knowing your industry & customers well. Only with those factors can you plan your budget and forecast well.

3. Serve your customers well. If you don’t serve your customers, others will. Sometimes, customers can be nasty. But if you explained and tried to get them understood, these difficult customers may become your loyal customers. They can also be your centre of influence once they become your friends and liked your service.

4. Always be aware and understand your competitor. You have to be updated of what’s going on in your industry. You can be a big player in your industry, but never be complacent. A newbie in the industry has all the ability to capture your market share without you realizing it.

5. Do take risk. Business is about opportunity and taking risk. However, you have to do some research and analysis to take calculated risk. Make a study on the possible challenges and its potential returns. Don’t just jump into the wagon recklessly. In this way, you minimize your losses.

6. Learn from the expert. You may like to get some feedbacks from an experienced business-owners pertaining to your plan that you wanted to carried out. Even the most experienced entrepreneur does that. The different views may help you to build up on your original ideas better.

7. Prepare for the unexpected. You may have drafted a wonderful business plan. Sometimes your plans still need some twinning due to unexpected events. This may result in amending your budget or forecast, or even abandoned the original plan at all. Therefore, your business plan has to be flexible in accommodating those circumstances.

8. Unique selling points. Your original plan may change with time and circumstances but your customers must be able to experience the difference when dealing with you. Develop a unique selling point to make your company stands out and beyond your competitors. Be it after sales service, follow-up system or whatever. Leave that last good impression with your customers.

9. Rewards and praise your staff. In order to keep your business running, you need a trustworthy, hard-working and dedicated staffs. Without them, your business may suffer. Therefore, you need to incorporate some form of reward system in your planning. This is to motivate your staff better and together, the company will reach greater heights.

10. Review your plan. No plan is wonderful unless you follow through. Identify your milestone. Whenever your sales volume or revenue reached several amount, you need to re-look into your business plan to see the possibility of expansions. Reviewing your business plan occasionally helps you to determine whether your existing process is effective or needs further improvement. Remember, it is your business plan that will turn your vision into reality.