Thanks for coming back and joining us for part 2!
This section unfortunately will be less creative and focus more on the financial and implementation side of the start-up. This part is crucial, understanding your figures and getting your costs right BEFORE you start is essential.
Start-up Costs:
Outline all of the costs associated with opening your pub or restaurant, including equipment, inventory, leasehold improvements, legal and consulting fees, and working capital.
Revenue Streams:
Identify the main sources of revenue for your pub or restaurant, such as food and beverage sales, catering, and private events.
Provide projected sales figures for each revenue stream and explain any assumptions or estimates used in your calculations.
Break-even Analysis:
Provide a break-even analysis, which shows the point at which your pub or restaurant will begin to generate a profit. This will include projected fixed and variable costs, as well as projected sales.
Explain how long you expect it will take to reach break-even and how you plan to achieve it.
Profit and Loss Projections:
Provide detailed profit and loss projections for the first 3-5 years of operation. This should include projected revenue, costs of goods sold, operating expenses, and net profit.
Explain any assumptions or estimates used in your calculations.
Cash Flow Projections:
Provide detailed cash flow projections for the first 3-5 years of operation. This should include projected cash inflow and outflow, as well as net cash flow.
Explain how you plan to manage cash flow and ensure that there is always enough cash on hand to cover expenses.
Return on Investment:
Provide an estimate of the return on investment (ROI) for your pub or restaurant, including projected net profit and the initial investment required.
Explain how long it will take for the business to generate a positive return on investment.
Sensitivity Analysis:
Include a sensitivity analysis which shows how changes in key assumptions, such as food and labour costs, will impact your financial projections.
This will help you understand the potential risks and opportunities associated with your business and help you prepare for unexpected changes in the market.
Note: It's important to be realistic and conservative while making these projections and to seek professional advice from an accountant or financial advisor if needed.
Implementation:
Construction and Renovation:
Outline the steps you will take to construct or renovate the location of your pub or restaurant, including timelines, milestones, and budget.
Describe any permits or approvals that will be required, and how you will obtain them.
Hiring and Training:
We previously identified staffing but now it's time to actually go through it.
Describe your hiring and training process for staff, including how you will attract and retain qualified employees.
Outline the roles and responsibilities of each staff member, and provide a timeline for when they will be hired.
Have a plan in place for rotas and shift rotations
Inventory Management:
Describe your inventory management system, including how you will order, store, and track inventory.
Explain how you will ensure that you have enough inventory on hand to meet customer demand while minimising waste and spoilage.
Equipment and Supplies:
Describe the equipment and supplies that you will need to operate your pub or restaurant, including kitchen equipment, furniture, and small wares.
Explain how you will acquire and finance these items.
Grand opening and pre-opening event:
Outline your plans for a grand opening event and pre-opening events, including the date, location, and budget. It's important to have a trial opening with friends and family that will give you honest feedback
Describe how you will generate buzz and attract customers to your event.
Systems and Processes:
Describe the systems and processes that you will implement to manage your pub or restaurant, including POS system, inventory management, and customer relationship management.
Explain how you will train your staff to use these systems and ensure that they are operating efficiently.
Monitoring and Evaluation:
Describe how you will monitor and evaluate the performance of your pub or restaurant, including key performance indicators, customer feedback, and financial metrics.
Explain how you will use this data to make improvements and achieve your goals.
Milestones:
Set specific, measurable, and achievable milestones for your pub or restaurant, with a clear timeline and budget.
Identify the key tasks that need to be accomplished and assign them to specific team members or departments.
Contingency plan:
Identify potential risks and challenges that your pub or restaurant may face and develop a contingency plan to mitigate or overcome them.
Explain how you will monitor and respond to changes in the market, economic conditions, and other factors that may impact your business.
That's a wrap! Remember this is a basic plan for support and not a fail-proof, sure-thing guide to success. ALWAYS do your own research.
Hope you enjoyed the read and please add in the comments any questions or helpful pieces of information.