Unlike any other small startups, opening a restaurant or a cafe is a tedious task. While starting a restaurant business you need to ensure that you are in it for the long haul.
Setting up a restaurant is quite a costly affair as a significant amount of resources are invested in establishing facilities and purchasing kitchen equipment.
More than 40% of the restaurant startups fail within the first year itself and half of the rest shut down their restaurants in the next three years as shown in the above info-graphic. Starting a business in Australia will cost you somewhere between $100,000 and $300,000. But that’s not all, for you will need more for a successful run.
This is because they lack enough capital to keeping running until they turn profitable. So, you need to make sure you have enough for the running costs, until you start earning a considerable amount of profit.
But just having the capital won’t give you success!
Then? What Are You Lacking?
An efficient business plan is a must for your business. Have a look at the sample business plan below. It clearly states the necessary step-wise actions to be taken when you are running a business as follows:
● Identify and Plan
● Align and Assess
The first major step of planning includes drafting a business plan sample for your restaurant and then finalizing it according to various factors.
Once this plan is ready, it will help you pitch your ideas to banks and investors in order to receive required funding. Lenders will only risk their time and money if you come with a sound business plan detailing your business, its future and its competitive advantage.
A restaurant startup business plan could begin with a name of your restaurant detailing your mission, goals and objectives. Below we will discuss several other things that you might need to include in your business plan.
Key Elements in writing a Business Plan for your restaurant in Australia:
● Restaurant concept
The foremost thing while writing a business plan would be the type of restaurant you want to open. Are you planning to set up a fine dining restaurant or a cafe or just a casual diner?
Once you have decided this, you should focus on getting your business plan the right name and an attractive logo.
These should be the main highlights of your restaurant business plan in Australia for it to appeal to the customers and thus, function well.
After this comes the selection of your restaurant location. The location is significant as it can make or break your business.
You will have to consider various factors as such business viability, nearby competitors and the parking space. Other than this, the location is also a significant factor when considering the leasing availability in a specific area.
Sometimes, a particular location can be a great customer attraction but can be associated with higher business risks. This might pose you the need to get a risk management plan for your business which will immensely help you in recovering the losses you encounter.
● Legal Requirements
Running a restaurant business additionally, involves a large amount of bureaucracy and paperwork. Once you have decided the location of your business, you will have to consider the government regulations and licensing requirements.
Food and Safety is an important requirement in Sydney, Australia and getting permits can be quite a burdensome exercise. Getting professional expertise who can draft a business plan Sydney, won’t be a bad idea when considering a small business startup.
Or you can easily build up your customized business plan using the essential risk assessment tools via various online software, one of them being Business Propel.
● Plan your Menu
Following this you will also need to plan your menu for the restaurant. This would give you the basic idea of the number of dishes you will be serving and how you plan to bring in supplies for the same.
It also helps you to decide the manpower and the chefs you need in order to serve that menu. Hiring skilled staff would ensure your business runs smoothly.
● Promotion on Social Media
Promotion of your business is vital to the success of your startup. With use of social media, you can target the particular audience and receive feedback from them as well. The appropriate social media strategy will help you to dominate your market.
So, you need to surely keep this step on your sample business plan to help you increase your brand awareness and promote your restaurant to your local market.
● Market Analysis
The market analysis would provide an overview of your target market. You will have to consider what your products will be and why customers would favor you over the competitors. You will also have to keep the customers’ needs in mind.
The below info-graphic gives you an example of a market analysis done by a restaurant in Australia to keep track of the types of food in demand amongst their customers.
This also involves researching according to the current trends in the industry, competitor prices and more.
To simplify it, you can also get a SWOT analysis done in order to consider the risks of competition.
In order to woo the investors, you will need to correctly estimate your figures. Without clear numbers, investors won’t be willing to invest in your small business. A common problem when starting a new business is making accurate estimations for the future. Hiring a financial expert is not a bad idea when you need the funds.
An accurate and formal business plan is a must for receiving the funding. Although it can be a cumbersome exercise to build a business plan, you can always make use of online business diagnostic tools to help you through.
As stated above, a popular freemium tool you could use is Business Propel. Catering to small business startups in Australia, the tool provides integrated business planning and diagnostic support for businesses.
Business Propel not only helps with formulating business plans but also with managing operations, finances, customers and strategies designed specifically for business startups.
If you are writing a small business plan for your restaurant in Australia, you will need to keep up with the local council requirements and more. The Business Propel online tool helps you with the whole process of the planning and you can use the same to keep track of your progress.