The most common type of business plans that we work on at The Business Plan Company are for cafes and restaurants, having completed hundreds of plans for new businesses, bank loans, finance and landlords. Most importantly, these business plans set clear direction for the business owners and cut down the ‘trial and error’ approach to business management. Having been a restaurateur myself in the past, I know that glint of excitement in the eyes of the business owners just starting off, who are brimming with excitement for their new venture.

As we write so many plans for cafes and restaurants, we have collected our top tips from our team, on how to write a great plan.

  • If you want to get the best value from the business planning process it takes time, so allow 2-3 weeks if you can. Oftentimes, we have clients that are in a super rush, wanting their plan in only a few days. This can be done, but you have to make a lot of assumptions, with less time to do research and to review the plan. Great business plans can’t be written in 24-48 hours.
  • Startup costs are very important but can be very tricky for cafes and restaurants. There are hundreds of different costs to consider, many of which can be difficult to get accurate numbers in the early stages. Take the time to get as many of these as you can, with actual quotes wherever possible.
  • Financial projections are a key component of business plans and are heavily scrutinised for finance, loan and investor business plans. If you are trading already, these should be based on past trading history to give a solid justifiable foundation for future forecasts. For new businesses, you need to make a lot of assumptions, so make sure they are clearly laid out, with conservative growth targets and realistic profit margins.
  • Cafe and restaurant businesses have a lot of compliances, including council planning, food safety, liquor and more, so include all of these and how they apply to the business.
  • Know the format of any applications that you are intending to make. For example, some banks have specific templates for the plan and projections.
  • Be realistic in your plans. You may have big plans for your business, but this can look unrealistic if you go too ambitious, lowering the overall credibility of your plan.
  • Make sure the plan is totally consistent all the way through; all parts of your plan need to match up, so keep an eye on small details that are also reflected in other parts of your business plan. As example, marketing costs need to match your strategy and wage costs need to match the organisational chart.
  • The market is competitive, so take time to understand what’s out there-go and try any that you feel compete with you. For cafes and restaurants, it is vital to pitch your unique and interesting place in a crowded market.
  • To get the most from the planning process, get help from professionals who know small business and ideally have owned a restaurant or café before.