If so, please share your experience in our comment section. Author: paul Borosky, mba., abd. Date: 5/23/2018, owner: quality business Plan and, tutor4Finance. Business Plan Consultant for Denver,. San Francisco and the silicon Valley have been the hub for technological innovation and tech companies for the last 20 years. . due to skyrocketing property values, startup tech companies have started to move east, to the denver,. Area as noted in the denver Business journal. .
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The only thing that may be worse than not reading market the research would be not conducting market research. . Restaurant business plans should contain market research related to the restaurant industry, there are sub industry within the restaurant industry umbrella and a thorough review of several competitors in the area. . For example, the restaurant industry has several sub industries such as fast food, fine dining, casual dining and take out. . When conducting market research, make sure to identify which subcategory your restaurant will fall into. . From this, do some market research related to the sub industry and competitors within a specific geographic distance. . failing to do this basic research may leave restaurant doors completely ignorant of the industry that they wish to compete. As most restaurant entrepreneurs already know, starting a restaurant without a business plan done by professional business plan writer is often a huge mistake that is easily avoided. . However, these four common mistakes may be committed by amateurs as well as professionals. . so, as a business owner, make sure to thoroughly read any business plan written for your future restaurant to make sure these mistakes are not in your plan. Hey all, Thanks for reading quality business Plan blog. . Is there a business plan mistake that you made when writing your business plan? .
However, some restaurant owners fail to actually read the document before submitting it to a bank or investor for funding. . This mistake may not only cost the entrepreneur a funding opportunity but may also uncovering embarrassing ignorance related to their business. Through market research, business plan writers are able to determine the likelihood or guesstimate as to the potential success of the business in an area. . For example, a customer is seeking to start a steakhouse in an area. However, through market research, business plan writers were able to identify that the area already has four steak themed establishments within a 2-mile radius. Without actually reading the document, entrepreneurs may miss the seemingly obvious fact. . Further, by reading the market research, customers were able to see that there is a potential opportunity for a different type of restaurant. . Regardless, without reading the document, restaurant entrepreneurs fail to fully utilize the benefits of a restaurant business plan. Business plan writers fail to do market research.
To mitigate this issue, restaurant business plan writer should start with identifying daily sales and costs for the business. . by doing this, assumptions may be made to justify daily sales as compared to monthly sales. . From the foundation, monthly and annual sales are better supported due to the foundation of the daily sales projections. . Through this practice, financial statements have a better chance of being accurate as compared to the monthly approach. Restaurant business plan research indicates location is poor. Most restaurant owners prepare business plans for the simple reason of obtaining a loan or enticing an investor. . Because of this, restaurant entrepreneurs may hire professional lined business plan writers to prepare the document. .
Restaurant financial statements are not supported with logical assumptions. Like most businesses, business owners for restaurants are in the game to make money. . Further, lending institutions and investors want to make sure that business owners can pay back their loans when the business starts. To satisfy both of these challenges, entities rely heavily on financial statements. . Unfortunately, some restaurant business plan writers failed to properly support financial statements in their business plans. . For example, some business plan writers start with monthly projections for revenues and costs. . From this point, annual projections are estimated. . The main issue with this procedure is that writers tend to have no supporting documentation related to justifying their chosen monthly revenue number.
A great Opportunity to Expand
However, our company does review a multitude of business plans related to restaurants and have identified four specific mistakes commonly made by business plan writers. No google map Picture of Proposed Restaurant Location. Just about every restaurant business plan that I have ever reviewed has good research related to the day location of the business and a description about the interior of the establishment as well. . However, some business plan writers failed to put a picture showing the property on a map. . Without this picture, investors or lenders will not be able to fully appreciate the chosen locations potential geographic advantages. .
For example, showing a picture on a map of the property will help readers see the restaurant proximity to various housing developments or apartments. . This would illustrate the multitude of potential customers for the establishment. . Further, restaurants at the edge of town do almost as well as downtown restaurants, depending on theme. . This is because people usually stop at these establishments for breakfast before work or to bring dinner home for the family after work. . Without a picture showing these advantages, lending opportunities may be missed.
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