We are so deep into this series of business plan blogs that we are dragging our feet practically. This new blog, as well as the next couple, will be dealing with money. Yes, money. We’re talking about the financial needs of your restaurant. This is important because, at the end of the day, your business plan is all about the numbers. It doesn’t matter if you’re hoping to convince a bank to give you a loan or a local investor to give you some cash; if the numbers look ugly, so do your chances.
So, what should you have as far as numbers go on your business plan? Well, first you need to have a few different forecasts, or projections of how much you hope to make in sales as compared to money you’ll need to spend. Really, you should have at least three potential forecasts: a worst-case scenario (where you make less than what you need, or even make just what you need), a best-case scenario (where you make significantly more than what you need), and a mid-range (where some things go well and others don’t). In the restaurant business, the old adage, “plan for the worst and hope for the best,” is more like a way of life.
Another hint to consider is looking at an actual calendar when you’re putting together your forecasts. We all know that February is the shortest month of the year, which means less operating days, but your bills will be roughly the same. Also, consider when you can get the most sales. Holidays offer great opportunities to really stack the deck and make some big money. For most, Valentine’s Day and Mother’s Day are the two biggest go-out-to-eat days you can find, so consider these things when making forecasts.
As mentioned above, there’s two elements to the forecast: sales and expenses. The next couple blogs will be detailed explanations of each and how to plan for them. After that, we’ll finally be able to start wrapping up this series. Sure, it’s been a long, arduous journey, but think about how much more you’ll know once it’s done. It’s all good on the Frog blog.
One Fat Frog Restaurant Equipment
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