As per Aristotle’s beautifully woven words, ‘Well begun is half done’, this speaks volume about the importance of the first step or first impression. It says that to build a strong building the foundation stone needs to be laid correctly.
Every foodie, more than once in his/her life, would have surely given thought to the idea of opening a café or restaurant, where he/ she can exchange the tastes of life with a few bucks.
NRAI IFSR 2016 estimates that the total contribution of the restaurant industry alone will contribute 2.1% to the GDP of India by the year 2021.
Riyaaz Amlani, President, NRAI has said, "The total food services market today stands at INR 3, 09, 110 crores and has grown at 7.7 % since our last report in 2013. This is projected to grow to INR 4, 98, 130 crores at a CAGR of 10% by 2021."
A well framed business plan will not only help in smooth running of the business but also it will fetch customers, clients and most importantly financial loan and financial needs provided by the bank. This business plan will stand tall alongside your ideas and will help you in winning the trust of the investors.
Here are a few points to remember while writing a business plan:
1. Executive Summary:
Do not over explain things in details like never ever disclose the uniqueness of our company or service. Keep it simple yet complicated.
No company displays their core business plan to others, for example the restaurant might allow you to see the kitchen, might let you talk to the chef, but it would never ever let the secret recipe out to the customers, and that is the baseline of restaurant business.
2. Objective of the business:
This is required to put forth the idea and intention of opening a restaurant in front of the bank or the investor, who are going to show you the green flag for the restaurant.
Investors and banks are people, who need to trust that their money is not going in some black hole; they need to get assured that the objective is clear and they are not being fooled or given false hopes.
One needs to keep transparency with the investors, when it comes to financial distribution. It also will help in keeping the focus of the business rather than beating around the bush.
3. Market analysis:
While planning to open a restaurant business, it is very important to study the market and analyse it thoroughly before jumping into the line.
Market analysis will clear the clouds from the surface by addressing some very important questions, such as what are you going to serve to your customers, where does your restaurant stand in the market, is there any demand for any particular cuisines or food type in the market now or in future, who all are your competitors in the market, how can you attract the customers and what are your expectations from the market?
4. Product\ service:
Some things one has to be very clear with self and with the audience is: What is the idea behind your service or your product?
The brain child of the idea should be to provide the best food and best customer service, before calculating or estimating the profit percentage.
Only a happy customer and a happy staff can make you earn profit. So there is no space for quality compromise.
Thus hiring smart and skillful staff is as important as deciding the menu, only then one can expect quality of service is being justified.
5. Financial plan:
The basic of restaurant business or any business is to earn the profit and that is fair enough only if you work on the finance or hire a trust worthy accountant.
The financial plan should reflect the details of how much needs to be invested, how much should be asked from the investors, what is the expected profit, how can more profit be earned and overall financial projection.
Keeping details of profits and loss along with the details of expenditure, paying the staff well, and distribution of profits will show your devotion and dedication towards the business.