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How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.

This includes anything from your restaurant's menu design , location, financials, employee training , and a lot more.

• Creating a solid business plan is important, as it helps:
• Transform your restaurant ideas into reality.
• Boosts entrepreneurial success by 16% ( Harvard Business Study ).
• It equips you to navigate challenges before they arise.
• Attracts potential investors.

Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.

Create a business plan to set yourself up for success.

Here's how to get started. 

What is a restaurant business plan? 

Before writing a business plan, it is important to understand its fundamentals.

It serves as a roadmap for starting and running your restaurant , making it easy for outside parties, such as investors, to understand your objectives, vision, and plan of action for your restaurant.

The length and level of detail of business plans vary, ranging from brief synopses to large papers. Investors can benefit from clear insights and additional information provided by beginning with a concise plan and working their way up to a detailed one.

In short, a thorough description of the resources allocated to the success of your restaurant should be included in your business plan.

Steps to include in your business plan 

Your restaurant and mission statement needs to reflect your brand and goals, but you don't have to start from scratch.

The Eat App Restaurant Business Plan template , created by industry professionals and packed with insider information, is your go-to manual for creating a profitable business plan.

Your finalized business plan should have 11 essential elements, no matter how you write it. Continue reading below. 

1. Executive summary

A restaurant business plan should always begin with an executive summary. Why?

• 80% of venture capitalists say they read the executive summary first.
• 62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.
• A strong executive summary can increase the likelihood of securing funding by up to 40%.

An executive summary not only acts as the introduction to your restaurant business plan samples but also as a summary of the entire idea.

The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.

The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.

To establish a distinct identity, you need to focus on common elements of an executive summary, including:

• A mission statement 
• Proposed concept development
• Cuisine selection
• The overall execution
• The potential costs
• Expected return on investments (ROI)

Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.

1.1 Concept Development

Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:

• cozy, intimate bistro
• bustling quick-service deli
• fast-casual restaurant
• fine dining establishment

Your concept should reflect your passion and expertise in the industry.

1.2 Cuisine Selection

The cuisine you select for your restaurant can significantly influence its success.

Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.

To make an informed decision, consider factors such as:

• Market demand
• Expertise and passion
• Ingredient availability
• Competition
• Profitability
• Cultural fit
• Seasonality
• Dietary restrictions and trends

In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.

1.3 Creating a mission statement

A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.

A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.

To create an impactful mission statement, consider the following steps:

• Identify the purpose of the restaurant.
• Contemplate the brand’s image.
• Account for the target audience.
• Incorporate company values.
• Ensure brevity and comprehensiveness.

Related content: How to Write a Restaurant Mission Statement 

Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market.

2. Company description

This is where you carefully introduce the company in the restaurant business plan.

Include the name of the restaurant you are launching in this field along with its address, phone number, and other important information.

Then, also include the owner's information as well as a synopsis or explanation of their background. The restaurant's legal position and its short- and long-term objectives should be outlined in the second section of the company description.

To demonstrate your understanding of the changes in the local food business and the reasons why the most independent restaurant investors will be successful in this market, please submit a brief market research.

Here's an example of the page layout:

Company Description

Restaurant Name: [Restaurant Name]

Location: [Restaurant Address]

Contact: [Restaurant Phone Number] | [Restaurant Email Address]

Owner: [Owner Name]

Experience: [Owner Name] has over [Number] years of experience in the restaurant industry. They have worked in various roles, including [List of Roles]. They are passionate about food and creating a memorable dining experience for their guests.

Legal Standing: [Restaurant Name] is a [Type of Legal Entity] registered in [State/Province].

3. Market analysis

The market analysis portion of the restaurant business plan is typically divided into three parts.

3.1 Industry analysis

What is your target market ? What demographics will your restaurant cater to?

This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.

Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.

An example of analyzing your target market

 Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.

Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.

By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.

Dining habits and trends

As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.

For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.

Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, so it is important to research your competition to make this a reality.

What restaurants have already established a customer base in the area?

Take note of everything from their prices, hours, and service style to menu design to the restaurant interior.

Then explain to your investors how your restaurant will be different.

3.3 Marketing analysis

Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others in the restaurant industry?

How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.

The menu is the most important part of a restaurant's debut. Your restaurant wouldn't be able to operate without it.

You most likely don't have a final draft at this time, but you should aim to create a mock-up menu for your restaurant business plan. You can choose a design that you can envision yourself using and add your logo to the mock-up.

There are several resources available online if you need assistance with menu design or don't want to hire a designer.

But the price should be the most important component of your sample menu. The cost research you've completed for investors ought to be reflected in your prices. They will have a clearer idea of your restaurant's intended price range as a result. 

You'll quickly see how important menu engineering can be, even early on.

5. Employees

The company description section of the restaurant business plan briefly introduces the owners of the restaurant with some information about each. This section should fully flesh out the restaurant's business plan and management team.

The investors don’t expect you to have your entire team selected at this point, but you should at least have a couple of people on board. Use the talent you have chosen thus far to highlight the combined work experience everyone is bringing to the table.

6. Restaurant design

The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don’t have professional mock-ups of your restaurant rendered, that’s fine.

Instead, put together a mood board to get your vision across. Find pictures of a similar aesthetic to what you are looking for in your restaurant.

The restaurant design extends beyond aesthetics alone and should include everything from restaurant software to kitchen equipment. 

7. Location

The location you settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.

At this stage in the process, it's not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.

Pro Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand. 

Example for choosing an ideal location

Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success. 

To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.

By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.

7.1 Foot traffic and accessibility

Foot traffic and accessibility are important factors in selecting a location that will attract customers and ensure convenience.

A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.

Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.

7.2 Neighborhood demographics

Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.

Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.

By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.

Conducting a market analysis can be a valuable step in this process.

To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.

Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.

Conducting market research will further strengthen your understanding of the local demographic.

8. Market overview

The market overview section is heavily related to the market research and analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the other restaurants that could prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world.

The next marketing strategy and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.

Read more : How to write a restaurant marketing plan from scratch

10. External help

To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running.

This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems.

Explain to your other potential investors about the importance of each and what they will be doing for your restaurant.

11. Financial analysis

The most important part of your restaurant business plan is the financial section. We would recommend hiring professional help for this given its importance.

Hiring a trained accountant will not only help you get your own financial projections and estimates in order but also give you a realistic insight into owning a restaurant.

You should have some information prepared to make this step easier for the accountant.

He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.

In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator. 

A well-crafted restaurant business plan serves as a roadmap to success, guiding every aspect of the venture from menu design to employee training.

By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals.

Remember, a restaurant business plan is not just a document to satisfy investors; it is a living tool that should be revisited and updated regularly as the business grows and evolves.

By staying committed to the plan and adapting it as needed, restaurateurs can ensure that their culinary dreams have a solid foundation for success.

Growth Marketing Manager at Eat App

Saif Alnasur used to work in his family restaurant, but now he is a food influencer and writes about the restaurant industry for Eat App.

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

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How to Write a Restaurant Business Plan (+ Examples)

Learn how to create a restaurant business plan with the best format that outlines your concept, and financials. Get examples and templates to get started.

10 minute read

helped business professionals at:

Short answer

What is a business plan for a restaurant?

A business plan for a restaurant is a document that outlines the restaurant's concept, strategies, and financial forecasts. It serves as a roadmap for launching and growing the establishment successfully.

Don't just focus on profit margins, ensure your business plan is well-presented

In the competitive world of the restaurant industry, where low-profit margins are a well-known hurdle, there emerges a critical, yet often overlooked, factor pivotal to success: the design of the business plan.

As we enter 2024, it's becoming increasingly clear that the traditional overlook of business plan design can no longer be afforded.

This isn't just about financial projections or market analysis; it's about crafting a blueprint that encapsulates the essence of your restaurant, compellingly communicates its value, and sets a solid foundation for growth.

By focusing on the design of your business plan, you stand to gain not just the attention of potential investors but also a clearer roadmap to navigate the challenges ahead.

What makes an effective business plan?

Embarking on the restaurant business journey requires more than just a passion for food-it demands a comprehensive plan that lays out every aspect of your venture with precision and foresight.

Let's delve into what constitutes an effective restaurant business plan, ensuring it's not just another document, but a roadmap to success.

6 key components of a winning restaurant business plan:

1. Vision and concept clarity

Start with a crystal-clear articulation of your restaurant's concept. Whether it's a cozy vegan cafe or a high-end steakhouse, the essence of your establishment should leap off the page.

This clarity helps potential investors and partners instantly grasp what you're aiming to create.

Beyond the concept, delineate your restaurant's values, mission, and the unique selling points that set you apart in a crowded market.

2. Comprehensive market analysis

A deep dive into market analysis cannot be overstated. Here, you're not just identifying who your customers are but also understanding the competitive landscape.

What are the prevailing trends in the dining sector? Who are your direct and indirect competitors, and how do you plan to differentiate yourself? This section should reflect a meticulous research process, showcasing insights that guide your strategy.

3. Robust financial planning

In any successful business plan, sound financial management is key.

Essential elements include:

Realistic financial projections: Your forecasts should be realistic, and built on data-backed assumptions.

Detailed profit and loss forecasts

Cash flow predictions

Break-even analysis

Contingency planning: Preparing for unforeseen challenges is crucial.

Develop a well-thought-out contingency plan to navigate the industry's unpredictable nature.

Identify potential risks and solutions, including supplier issues, staffing shortages, and changes in consumer behavior, to ensure business resilience.

4. Operational strategies

Operational excellence underpins a restaurant's success. Detail your plans for day-to-day operations, from sourcing ingredients to managing inventory and staffing.

Highlight your commitment to quality and efficiency in every aspect of the operation, from the kitchen to customer service.

Also, outline the technology and systems you'll implement to streamline processes and enhance the dining experience.

5. Marketing and branding

In today's digital age, a savvy marketing and branding strategy is crucial.

Describe how you'll create a strong brand identity and the channels you'll use to reach your target audience.

From social media campaigns to community engagement initiatives, your plan should reflect a keen understanding of how to connect with potential customers and build a loyal following.

Discover how to create a marketing deck to align your strategy with your business objectives, target audience needs, and market trends.

6. Customer experience focus

Exceptional customer service is the lifeblood of any successful restaurant. Detail the steps you'll take to ensure every guest feels valued and satisfied.

From the ambiance and menu design to staff training programs, every element should contribute to a memorable dining experience.

Feedback mechanisms and how you'll adapt to customer preferences are also vital components of this section.

What should be included in a restaurant business plan?

Creating a restaurant business plan is a foundational step toward launching a successful dining establishment.

It outlines your vision, strategy, and the specific actions you plan to take to make your restaurant a success.

Below, we break down the essential components that should be included in your restaurant business plan, ensuring clarity, comprehensiveness, and appeal to potential investors.

8 essential sections of a restaurant business plan:

1. Executive summary

A compelling overview of the restaurant, showcasing its unique concept, mission, and strategic objectives that guide its operations.

Overview: Present a succinct snapshot of your restaurant, including its concept, mission, key goals, and ownership structure.

Purpose: Highlight what you aim to achieve with the restaurant and the appeal it has to potential investors or lenders.

2. Business description

An in-depth look at the restaurant's theme, location, and how these elements combine to create a distinctive dining experience.

Concept and theme: Describe the unique aspects of your restaurant's concept, from the cuisine and menu items to the design and ambiance.

Location analysis: Analyze the chosen location, discussing demographics, foot traffic, and how these factors make it an ideal spot for your target market.

3. Market analysis

An insightful examination of dining trends, target demographics, and customer needs to inform strategic positioning.

Trends: Examine current trends in the dining industry and how they influence your restaurant's positioning.

Target demographic: Identify your target customers, detailing their preferences, dining habits, and how your restaurant will meet their needs.

Needs and preferences: Focus on understanding and catering to what your target market seeks in a dining experience.

4. Competitive analysis

A detailed evaluation of competitors, focusing on differentiation and strategies for establishing a market edge.

Competitors: List direct and indirect competitors, analyzing their strengths, weaknesses, and how you'll differentiate your restaurant.

Differentiation: Explain the unique selling points that will set your restaurant apart in the competitive landscape.

5. Menu and product offering

Overview of menu design, ingredient sourcing, and special services that enhance the restaurant's appeal.

Menu design: Discuss the inspiration behind your menu, including how it reflects the theme and caters to your target demographic. Outline your pricing strategy and item selection.

Sourcing and suppliers: Detail your approach to sourcing high-quality ingredients, including partnerships with local suppliers and commitments to sustainability.

Special offerings: Highlight any additional services your restaurant offers, such as catering, special events, or exclusive seasonal menus, to draw in a wider audience and generate extra revenue.

6. Marketing and sales strategy

A summary of branding efforts, promotional tactics, and sales projections designed to attract and retain customers.

Branding: Detail your restaurant's brand identity, including name, logo, and how it communicates your restaurant's values and mission.

Marketing tactics: Outline the strategies you will employ to attract and retain customers, such as social media marketing, local advertising, partnerships, and loyalty programs.

Sales forecasts: Provide realistic sales forecasts, explaining the rationale behind these projections and how you plan to achieve them.

7. Operating plan

Description of daily operations, facility management, and health safety protocols to ensure smooth and compliant restaurant functionality.

Daily operations: Describe the operational flow of the restaurant, including hours of operation, staffing requirements, and customer service policies.

Facility management: Discuss the layout and design of your restaurant, kitchen equipment needs, and any other facility-related details that will ensure efficient operation.

Health and safety: Outline the health and safety measures you will implement to comply with local regulations and ensure the well-being of both employees and guests.

8. Management and organization

An outline of the restaurant's organizational structure, key personnel, and staffing strategies for operational excellence.

Ownership structure: Specify the ownership structure of the restaurant, including key stakeholders and their roles.

Team composition: Introduce the management team, chefs, and other critical staff, highlighting their experience and how it contributes to the restaurant's success.

Staffing plans: Discuss your plans for hiring staff, including numbers, positions, and the qualities you seek in employees to maintain high standards of service.

How to create a business plan for a restaurant?

Creating a standout business plan for your restaurant involves focusing on key components that blend your vision with practical strategies.

6 actionable steps to distill your restaurant business plan:

Define your concept clearly: Begin by articulating your restaurant's concept, ambiance, and what sets it apart. This clarity lays the groundwork for the entire business plan.

Conduct thorough market analysis: Dive deep into your target market and competitors. This research will guide your menu design, pricing strategy, and marketing efforts, ensuring you carve out a unique space in the marketplace.

Craft a compelling menu: Ensure your menu reflects your brand identity and appeals to your target audience, all while considering cost-effectiveness and supply chain realities. Aim for a balance between innovation and simplicity.

Develop realistic financial projections: Detail initial costs, revenue expectations, and a break-even point. Importantly, predict potential hurdles with ready contingency plans.

Outline operational strategies: Describe your daily management approach, including sourcing, staffing, and customer service. Efficient operations are crucial for a seamless experience and streamlined processes.

Implement strategic marketing: Choose the most effective ways to connect with your audience. Building a strong brand narrative and engaging actively with customers can help turn first-time visitors into regulars.

7 restaurant business plan examples for winning partners and investors

When it comes to crafting a business plan for a restaurant, the type of establishment you're planning significantly influences the structure and content of the document.

Each kind of restaurant from fast-casual and fine dining to food trucks and bistros-caters to different market segments and operational models.

Here's a look at how these differences manifest in their respective business plans:

1) Fine dining restaurant business plan

Market focus: Targets higher-income clientele seeking a premium dining experience. The plan should highlight exceptional service, high-quality ingredients, and unique culinary offerings.

Operational model: Detailed attention to the ambiance, chef expertise, and a higher staff-to-guest ratio. Wine lists and bar offerings also play a significant role.

Financial projections: Emphasizes higher check averages with a focus on profitability per guest rather than volume. The cost structure will detail higher initial investment in decor, kitchen equipment, and inventory.

Here’s an example of a fine-dining restaurant business plan:

2) Bar restaurant business plan

Market focus: Targets a diverse clientele, from young professionals to social groups, seeking a blend of dining and socializing.

Operational model: Balances innovative cuisine with an extensive beverage selection in a space designed for both eating and lounging, including live entertainment options.

Financial projections: Outlines dual revenue streams from food and drinks, emphasizing beverage sales' higher profit margins and detailing licensing, entertainment, and insurance costs.

Here’s an example of a bar restaurant pitch deck:

3) Bistro restaurant business plan

Market focus: Caters to locals and tourists seeking a casual yet refined dining experience, positioning itself as a cozy neighborhood spot.

Operational model: Highlights a selective menu that adapts seasonally, emphasizing a warm ambiance and personal service.

Financial projections: Projects moderate earnings with a strong local following, noting initial investments in location and ambiance to create a distinctive setting.

Here’s an example of a bistro restaurant pitch deck:

4) Food truck business plan

Market focus: Appeals to urban professionals, millennials, and foodies looking for unique, high-quality food options on the go.

Operational model: Mobility is key. The plan must address location strategy, permits and regulations, and adaptability to different events and seasons.

Financial projections: Lower startup costs compared to brick-and-mortar establishments but include considerations for vehicle maintenance, fuel, and parking permits.

5) Coffee restaurant business plan

Market focus: Appeals to a varied audience with a unique theme or specialty cuisine, standing out from conventional coffee shops.

Operational model: Details the influence of theme or cuisine on menu design, decor, and guest experience, aiming to make the restaurant a destination.

Financial projections: Anticipates varied financial outcomes based on concept uniqueness, with thorough market research guiding pricing and marketing strategies.

6) Italian, Mexican, Asian, etc., cuisine restaurant business plan

Market focus: Focuses on providing authentic dining experiences to both expatriates and locals interested in specific cuisines.

Operational model: Requires sourcing authentic ingredients and skilled chefs familiar with the cuisine. The business plan should address menu authenticity, culinary training, and potential partnerships for ingredient import.

Financial projections: Depending on the positioning (casual vs. fine dining), financials would reflect the cost of unique ingredients and the expected dining experience level.

Here’s an example of an Italian restaurant business plan proposal:

7) Fast food restaurant business plan

Market focus: These plans emphasize speed, efficiency, and affordability. The target market typically includes busy professionals, families looking for convenient meal options, and younger demographics.

Operational model: The business plan must detail quick service operations, including streamlined kitchen layouts, supply chain logistics for fast-moving inventory, and technology for order taking (e.g., apps, and kiosks).

Financial projections: Focus on volume sales, low to moderate check averages, and strategies for high turnover rates.

How to design a restaurant business plan?

Designing a restaurant business plan is much like crafting a compelling game pitch deck, it's all about presenting your concept in a way that's as irresistible as the dining experience you're proposing.

8 restaurant business plan design tips:

1. Embrace scrollytelling

Use narrative scrolling to take your audience through the journey of your restaurant's concept, from the inspiration behind your dishes to the ambiance you plan to create.

This dynamic presentation style keeps readers engaged, turning your business plan into an immersive experience.

Here's an example of scroll-based design:

2. Incorporate interactivity and multimedia

Go beyond static pages by embedding interactive elements like sample menu walkthroughs, virtual tours of the restaurant layout, or clips from cooking demos.

These elements not only highlight your restaurant's unique offerings but also keep potential investors or partners engaged throughout your presentation.

And here's what a static presentation looks like compared to an interactive one:

Static PowerPoint

Interactive Storydoc

3. Use data visualization

Present market research, target demographics, and financial projections through clear, compelling visuals.

Transform complex data into easy-to-understand graphs, charts, and infographics, making your business strategy both visually appealing and straightforward to grasp.

Here's an example of a presentation with dataviz elements:

4. Personalize your deck

Leverage software that allows for customization, such as incorporating the viewer's name or tailoring content to specific investor interests.

A personalized approach demonstrates meticulous attention to detail and can forge a stronger connection with your audience.

5. Use cohesive branding

Ensure your business plan reflects your restaurant's identity through consistent use of colors, fonts, and imagery that align with your branding.

This not only enhances the visual appeal of your plan but also immerses your audience in the atmosphere you aim to create.

6. Ensure mobile-responsive

Given the variety of devices stakeholders might use to view your plan, ensuring a mobile-responsive design is essential.

This ensures that your business plan is accessible and engaging, whether it's being viewed on a smartphone or a desktop computer.

7. Highlight key information

Design your business plan to draw attention to critical information.

Techniques such as strategic content placement and highlighting can guide the reader's focus, ensuring that essential points stand out without overwhelming the viewer with too much information at once.

8. Segment content in tabs

Organize your business plan into sections or tabs that cater to different aspects of your restaurant concept and business strategy.

This not only makes your plan more navigable but also allows readers to easily find the information most relevant to their interests or concerns.

Here's an example of a tabs slide:

Restaurant business plan templates

Kicking off your restaurant business plan is a daunting task, especially when you aim to capture the essence of your dining concept in a document.

Interactive restaurant business plan templates are designed to simplify this process. They provide a structured framework that incorporates interactive and multimedia elements, essential for presenting your restaurant in a vibrant and dynamic manner.

These templates not only save you precious time but also guarantee that your business plan conveys a polished and compelling story.

Snag one today!

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talking to clients about their successes and failures so I can get a rounded understanding of their world.

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A Step-by-Step Guide to Opening a Restaurant

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If you love food and want to start your own small business, you've possibly done some research into how to open a restaurant. After all launching a restaurant is one of the most common routes to entrepreneurship in the United States. According to the National Restaurant Association , restaurant workers make up 10% of the United States workforce. What's more, projected sales in the restaurant industry are projected to reach $863 billion in 2019.

But starting a restaurant means entering a highly competitive space. There are over 1 million restaurant locations in the United States, and 60% of restaurants fail within the first year. So how do you stand out, and build something that will last?

In this guide, we'll show you how to open a restaurant and avoid the common mistakes that plague most new restaurateurs.

A step-by-step guide to starting a restaurant

Whatever background or level of experience you come from, nothing can totally prepare you for starting your first restaurant, or really starting any business. Even more, no matter how much you read or what research you do, there are certain things about being a restaurateur that you can truly only learn from experience. But the steps below can help you avoid some of the most common pitfalls.

Step 1. Pick a niche

There are a wide variety of eateries out there in the world, and it takes lots of different skills to keep them running smoothly.

As you look around your own little corner of the universe, what cuisine, service, or convenience do you see as missing? What foodie need is still left to be filled? Would your market be best served by opening a pizza shop, starting a food truck, or opening a cafe?

If this isn’t narrowing down your options well enough, consider some of these top trends .

Step 2. Write your business plan

In the same way that recipes give you a roadmap to create an excellent dish, your restaurant business plan is the recipe you’ll follow to make your business a success.

Ultimately, writing a business plan is about thinking through and answering questions about your future restaurant that force you to contemplate the market you serve, the viability of your overall plan, and challenges you might not have otherwise have thought of.

When done right, this process will help you refine define the next steps involved in opening your restaurant, giving you the highest possible shot at success.

Take a look at the 12 biggest questions you should be answering as part of the business planning process for your future restaurant:

What kind of restaurant do you want to run? This is known as your “elevator pitch,” and it’s something you’ll repeat over and over and over to friends, family, customers, lenders, investors, and just about everyone else.

Who is your restaurant for? This is called your target market—the group of people whom your restaurant is meant to serve.

Who are your competitors? It helps to understand who you are competing against in your market and how their restaurants are similar and different than yours.

Where will your restaurant be located ? Having an expensive steak house in the middle of a low-income neighborhood probably won't work out.

What is your value proposition? What makes your restaurant different from the competition?

How will customers find your restaurant? Will you market your business through word-of-mouth, paid advertising, social media, or another method? We recommend leveraging popular review apps like Yelp, OpenTable, and Resy to allow customers to find and review your restaurant or even book a reservation online.

What resources will your restaurant need? Take the time now to list out all the one-time and recurring expenses you’re likely to incur as part of your cost of doing business—leaving no stone unturned.

How will your restaurant make money? Your business model determines how your restaurant will generate revenue, cover expenses, and eventually make more money than it spends.

How long will it take for your restaurant to turn a profit? Use a revenue forecast to determine how long it will take to recuperate your initial investment, break even, and run a profitable business.

What are you not willing to compromise on? What values are most important to you, both personally and as a business? What are your non-negotiables? This will help you make critical business decisions down the road.

What is your staffing plan? Your head chef, friends, and family will be the place to start looking for stand-up, smart, reliable people. But even when you find the right staff, you'll have to train them.

What's your endgame? Are you building a restaurant that you hope to eventually sell, or are you working towards a long-term, sustainable business? Knowing where you want to end up, and when, will help to inform many of your business decisions along the way.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 3. Choose your restaurant's name and legal structure

If you plan to use a unique name for your restaurant, go ahead and file your “doing business as” (DBA) name with your state’s agency, as this will keep you from losing your name idea to another business.

Once you have your DBA figured out, you'll need to select a business entity type for your restaurant. The structure you choose will impact how you file state and federal business taxes, the roles of different team members, and how you can be held liable in the event that someone files a legal claim against your business.

Because of the long-term and potentially weighty impact of your chosen business structure, it’s a good idea to consult a business attorney to help you make this choice. Here are the most common entity types for restauranteurs:

Sole proprietorship

This is the most basic form of business structure, in which you alone own the company and are responsible for any liabilities associated with it.

If you plan to have a food truck, pop-up, or any very small operation and won’t be taking on fixed assets or hiring any employees, a sole proprietorship might be the perfect structure for you. And the best part is you don’t have to take any formal action to form a sole proprietorship.

If you’ll be operating under your own name, you can just jump right into business. And if you have a clever idea for a business name, your “doing business as” filing (from above) will be all you need.

Partnership

This structure defines a single business in which there are two or more individuals are owners.

There are a few different partnership structures you can choose from, including a general partnership, limited partnership, or a joint venture.

Most experienced entrepreneurs don’t recommend partnerships as a business structure because they don’t offer much protection from liability.

If you do go with a partnership, make sure you choose a business partner is someone you can work well with for the long haul, and put clear terms and expectations in writing from the beginning detailing the roles and responsibilities of each party.

C-Corporation

A C-corporation is a more complex business structure usually reserved for larger companies, or those in particularly high-liability industries looking for a little extra insulation.

Most attorneys tend to put restaurants in this high-liability category, so a C-corporation structure is most likely to be recommended. That said, keep in mind that establishing a C-corporation requires having a board of directors as well as officers, and has more complicated tax filing requirements.

So consult your attorney, but also be prepared that the process might be a bit complex.

S-Corporation

Structured very similarly to a regular C-corporation, S-Corporations stand out because they’re taxed at the individual business owner level, rather than being taxed corporately.

If you think you may need the structure of a corporation but don’t want to mess with complicated dividend filings, an S-Corp might be a great middle ground for you.

Limited Liability Company (LLC)

Offering the liability protections of a corporation along with the flexibility and tax simplicity of a sole proprietorship or partnership, the limited liability company (LLC) is a “best of both worlds” business structure that has grown significantly in popularity over recent years.

Entrepreneurs who opt for an LLC structure can choose between a single-officer LLC, a partnership LLC, or a limited-liability corporation.

Step 4. Get a tax identification number for your restaurant

Also known as your employer identification number (EIN for short), this number helps the IRS keep track of your business for tax purposes.

Think of it like a social security number for your business.

If you plan to retain employees (think wait staff, hosts and hostesses, cooking staff and even dishwashers)—and especially if your business is established as a corporation or partnership—you’ll need this number to keep things on the up and up.

To obtain an employer identification number, apply online at the IRS website.

Start Your Dream Business

Step 5. Register your restaurant for state and local taxes

In addition to federal business taxes, most U.S. states and territories will require you to pay income and employment taxes for your business. Certain states have additional fiscal requirements, like state-mandated workers’ compensation and unemployment insurance.

Registration, requirements, and filing procedures vary widely from state to state, so check out the business tax information specific to where you live.

Step 6. Secure permits, licenses, and insurance for your restaurant

The FDA updates the Food Code every four years, but the details of what is required, strongly encouraged, and just optional will vary from state to state, and even between counties.

You could read the 600+ pages published by the FDA , but we would recommend starting by finding your state's food service code regulation department . Here you'll find some of the highlights you should expect to encounter to get up to code in your area. This resource is useful, but not comprehensive, so be sure to check in with your local health department to make sure all of your bases are covered.

It’s a good idea to keep a master calendar with reminders for all of your renewal and payment due dates.

Food licenses

The most important part of remaining complaint is acquiring food and health code licenses. These licenses certify that you are safely handling, storing, and serving food. And don’t think that having a food cart or even a booth at a festival gets you out of this: they thought of those, too.

Included in this, but with its own special set of permits and rules will be serving alcohol. This covers not only safely serving alcohol but also includes training for dealing with customers that have perhaps overindulged. Read our complete guide for getting a liquor license in every state.

Health department permits

The health department has a lot to say about what is safe for the places you want to store, prepare, and serve your food. Your establishment will need to be inspected for operational safety, as well as edible safety.

Think maximum occupancy, fire hazards, ventilation, food surface types, sink placement, restroom regulations, and so on.

Restaurant insurance

Even with all the necessary licenses and permits, you still need to have some extra safety nets in place. You'll need to look into the specific business insurance requirements for restaurants.

Requirements vary depending on where you live and how you’re funded, but at the very least, you’ll want to consider these:

Property insurance

General insurance

Liquor liability

Auto liability

Workers compensation insurance

Unemployment insurance

Life insurance

Fire insurance

Loss of business

Food contamination

Americans with Disabilities Act compliance

In 1992, the Department of Justice passed the Americans with Disabilities Act so that consumers and employees with disabilities could avoid discrimination from places of public accommodation.

The complete details of the ADA are pretty detailed, but you can use this U.S. Small Business Administration guide to understand what is expected.

When you get past all the angles, measurements, and legalese, it boils down to having accommodations in place so that people with disabilities can safely park, travel into your restaurant, order food, and eat at a table.

Step 7. Set up accounting documents

Running a restaurant involves a lot of paperwork. You’ll need accounting documents to file your taxes, apply for business financing, and for internal tracking of your revenue, expenses, and profitability.

At a minimum, every restaurant owner should regularly maintain these three basic accounting documents:

Balance sheet

The balance sheet is essentially a snapshot of your restaurant’s financial standing at a given moment. It lists the assets, liabilities, and equity your company holds at a given time and is used to calculate the net worth of your business. Maintaining a “balanced” balance sheet—one in which total assets equals liabilities plus equity—is the foundational tenet of basic bookkeeping.

Income statement

Sometimes called a profit and loss statement, your income statement summarizes your business revenues and expenses over the course of a year, letting you calculate your net profit or loss for that year. Maintaining an accurate income statement is critical to measuring profitability over time.

Cash flow statement

Having enough cash on hand to cover expenses can make or break a restaurant’s financial health. In fact, this issue is so important, there is an accounting document dedicated to the tracking of cash flow .

Your cash flow statement reflects the inflow of revenue and outflow of expenses resulting from all your restaurant activities during a specific time period—usually a month or a financial quarter. Inflow will come from serving food and drink to your paying customers, while outflow represents things like purchasing ingredients, payroll, and paying rent and other overhead expenses.

Consider hiring a bookkeeper or accountant

If you feel a bit overwhelmed by these accounting protocols, we recommend asking around for a certified public accountant (CPA). It’s important to choose someone whose personality fits with yours, who will be available to answer questions as needed, and who can handle financial areas where you have less experience. There are also a number of online bookkeeping services available, many of whom employ CPAs.

Having a CPA experienced in the restaurant industry will help you understand your local laws to avoid problems when it comes servers minimum wage, tips as income, and over time for your staff.

Step 8. Invest in the right tools for your restaurant

Especially with all the moving parts involved in a working restaurant, managing the accounting documents above by hand can get overwhelming fast.

Not to mention employee schedules, timesheets, payment processing, payroll processing, and all the other logistics that go into keeping your restaurant afloat!

Thankfully, there are great restaurant accounting software options and other useful tools available that will take the guesswork out of your bookkeeping and generate these accounting documents automatically.

Restaurant POS system

One of the things entrepreneurs often overlook when researching how to open a restaurant is a restaurant POS system . A restaurant POS system is a combination of hardware and software that allows you to perform many important functions, including payment processing, front-of-house management, order coursing, and tip reconciliation. Most POS systems also produce helpful reports that allow you to more efficiently run your business.

Here are some of our favorite POS systems, based on the type of restaurant you own:

Square for Restaurants: Best POS system for new restaurants.

Clover POS: Best POS system for quick-service restaurants.

Lightspeed Restaurant POS: Best POS system for small and medium-sized restaurants.

TouchBistro POS: Best POS system for full-service restaurants.

Toast POS: Best overall restaurant POS system.

Loyverse POS: Best free restaurant POS software.

Step 9. Keep up with your restaurant's tax obligations

Along with getting your books in order, understanding and fulfilling tax requirements should be a first priority in the financial management of your restaurant. The consequences for failing to file your state and federal business taxes are severe—as in you could lose your business and even face criminal charges.

So even though dealing with the IRS can be intimidating, this isn’t something you can ignore.

Let’s break down the main business tax obligations you’ll need to keep track of:

All businesses must file annual income tax returns and make payments based on revenue received.

The exact tax form you use to make income tax payments depends on the structure of your business: sole proprietorship, partnership, corporation, S-corporation, or limited liability company (LLC).

Self-employment tax

Individuals who work for themselves (including small business owners) must pay social security and Medicare taxes via a self-employment tax. This tax is similar to the taxes withheld from the pay of most wage earners.

Estimated tax

Income and self-employment taxes both qualify as “pay as you go” taxes. You’ll need to file quarterly documents estimating the taxes you owe in these categories and make payments accordingly.

Click here for forms and more information about how to make quarterly estimated tax payments.

Employment taxes

Since you'll probably have employees working in your restaurant, you'll face additional tax obligations related to those employees, including social security and Medicare taxes, federal income tax withholdings, and the federal unemployment tax.

Learn about the specific IRS information about filing employment taxes for your business.

Step 10. Fund your newly opened restaurant

Unless you happen to be independently wealthy, you’ll likely need some funding from somewhere for starting a restaurant.

Entrepreneurs choose to finance their businesses in any variety of ways, but the most common approach is to take out a business loan . The growth of the alternative lending industry has brought about a wide variety of loan products to meet the needs of entrepreneurs, each with different costs, payment structures, and application processes.

Let's review the business loan options available to restaurateurs.

Probably the first thing you think of when you imagine business lending, term loans offer a set repayment time, set number of payments, and have a fixed or variable interest rate.

Depending on your business needs, credit rating, and other factors, there are a wide variety of term loans available to many small business owners—both from traditional banks and from non-bank alternative lenders—and with terms ranging from one year with daily payments up to five-year terms with monthly payments, and everything in between.

Because of the risky nature of small business lending, many commercial lenders have in the past been hesitant to lend money to small business owners, especially new restaurant ventures.

As a solution, the Small Business Administration began guaranteeing as much as 80% of the loan principal for term loans through participating lending institutions. This could be a viable option if you are already experienced in the food industry. (Otherwise, you probably won’t be considered.)

The SBA offers a variety of loan programs, including for restaurateurs. If you plan to use an SBA loan as your main source of funding to start your restaurant, you will need to go into this process with your ducks in a row. Write a stellar business plan that highlights the uniqueness of your idea, and be prepared to have 20%-30% of your loan amount in cash—or to take out a mortgage on your home.

Keep in mind, though, that while the SBA’s stamp of approval may make some lenders more willing to consider applicants who don’t fall within their strict loan criteria, applying for an SBA loan still involves lengthy paperwork, and the process can take several months.

Equipment financing

If you specifically need cash to make a big equipment purchase (like point of sale technology, commercial kitchen appliances, flatware, or furniture) for your new establishment, restaurant equipment financing might be the right choice for you.

This financing product works very similarly to a car loan, with the amount you can borrow depending on the price and type of equipment you’re buying.

And because the equipment itself serves as collateral, you likely won’t be asked to put up additional collateral for the loan.

Equipment financing terms typically work at a fixed interest rate—usually between 8% and 30%—with a fixed term length so your payments will be the same from month to month.

Short-term loans

For businesses with smaller and immediate financing needs, short-term loans can be a lifesaver. These loans work similarly to traditional term loans but cover amounts in the $2,500 to $250,000 range with terms of between three and 18 months.

With interest rates as low as 14%, short-term loan providers can often get you cash in hand in as few as two days, letting you make rent, cover payroll, pay food vendors, or meet other immediate overhead expenses—even when cash is tight.

Line of credit

Perhaps the most flexible form of business financing available, a business line of credit gives you capital to draw upon to meet a variety of business needs.

Once established, you can draw on your line of credit as you would a personal credit card, to get more working capital, buy inventory, handle seasonal cash flows, pay off other debts, or address almost any other business need.

If you do plan to apply for a small business loan at any point in the future, make sure that you are regularly reviewing your personal and business credit reports, as well as doing what you can improve your credit score.

Along with your annual revenue, time in business, and average bank balance, your personal and business credit scores are the single most important factor that will determine your ability to qualify for a small business loan.

» MORE: Best options for food truck financing

How much does it cost to open a restaurant?

Now that you know your financing options, you're probably wondering exactly how much financing you'll need.

Obviously, the cost to open a restaurant varies widely depending on the type of restaurant you want to open, service style, decor, location, menu, and more. However, a recent survey by RestaurantOwner.com provided some insight into what entrepreneurs might have to pay.

According to a survey of 350 restauranteurs, a small restaurant can cost as much as $175,500 in total startup costs. A medium sized restaurant costs up to $375,500, and a large restaurant costs up to $750,500. You can view the full results of the survey here :

Step 11. Market your restaurant

The last step in how to open a restaurant? Tell the world about it!

There are a variety of methods for marketing your restaurant to your target audience. Here are a few ideas to get you going:

Use social media marketing to share photos of your dishes, answer customer inquiries, and communicate the merits of your brand.

Make a professional looking website to show the world that you are a legitimate and trustworthy business.

Get your business aforementioned customer review websites like Yelp, OpenTable, and Resy.

Offer promotions such as discounts for first-time customers or a customer referral program.

Have a grand opening that stirs up interest in your restaurant and attracts media attention.

The bottom line

Being a restaurateur is truly not for the faint of heart, as owning your own restaurant is a never-ending, 24/7 adventure. The challenges and questions that come up for each restaurant owner will vary as widely as the different eateries and states they operate in. But if food is your passion and owning a restaurant is your dream, the steps above can offer a good start toward making that dream a reality.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Restaurant Business Plan Template

Written by Dave Lavinsky

Restaurant Business Plan

You’ve come to the right place to create your restaurant business plan.

We have helped over 100,000 entrepreneurs and business owners with how to write a restaurant business plan to help them start or grow their restaurants.

Below is a restaurant business plan template to help you create each section of your business plan.

Restaurant Business Plan Example

Executive summary, business overview.

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, Bluehorn Restaurant & Steakhouse’s mission is to become Oklahoma City’s best, new restaurant for patrons to celebrate their next big event, have a nice date night, or gather with friends or family for a fun evening while dining over finely crafted entrees, desserts, and cocktails.

Products Served

The following are the menu items to be offered by Bluehorn Restaurant & Steakhouse:

• Soups & Salads
• Gourmet sides
• Wine, Beer & Spirits

Customer Focus

Bluehorn Restaurant & Steakhouse will target adult men and women between the ages of 21 – 65 with disposable income in Oklahoma City, Oklahoma. Within this demographic are millennials, young professionals, newlyweds, young families, more established families, and retirees. Because of the pricing structure of the menu, the patrons will likely be upper middle class to the wealthy population of Oklahoma City.

Management Team

Bluehorn Restaurant & Steakhouse is owned and operated by fellow Oklahoma City natives and culinary enthusiasts, Chef Peter Logan and Anastasia Gillette. Both come with a unique skill set and complement each other perfectly. They formerly worked together at another OKC fine dining establishment and made a great team for serving guests delectable food and wine while ensuring the highest level of customer service.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse, while Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations.

Financial Highlights

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The funding will be dedicated for the build-out and design of the restaurant, kitchen, bar and lounge, as well as cooking supplies and equipment, working capital, three months worth of payroll expenses and opening inventory. The breakout of the funding is below:

• Restaurant Build-Out and Design – $100,000
• Kitchen supplies and equipment – $100,000
• Opening inventory – $25,000
• Working capital (to include 3 months of overhead expenses) – $25,000
• Marketing (advertising agency) – $25,000
• Accounting firm (3 months worth and establishment/permitting of business) – $25,000

Company Overview

Bluehorn Restaurant & Steakhouse is a new restaurant and steakhouse located in Oklahoma City, Oklahoma. Bluehorn Restaurant & Steakhouse will serve a wide variety of dishes and beverages and will cater to the upper middle class to wealthier population of Oklahoma City. The menu of Bluehorn Restaurant & Steakhouse will include bistro-type dishes that are authentically created and crafted by acclaimed Chef Peter Logan. It will be located in the trendy part of town, known as the Plaza District. The Plaza District is one of Oklahoma’s trendy neighborhoods and is considered the “it” area for newlyweds, millennials, professionals, and young singles. The restaurant will be surrounded by classy art galleries, live theater, high-end restaurants and bars, and expensive shopping.

Owned by emerging restaurant operators Chef Peter Logan and Anastasia Gillette, the restaurant’s mission statement is to become the best new steak restaurant in OKC. The following are the types of menu items Bluehorn Restaurant & Steakhouse will serve- shareables, steaks, soups, gourmet sides and salads.

Bluehorn Restaurant & Steakhouse History

Bluehorn Restaurant & Steakhouse is owned by two Oklahoma City natives, Chef Peter Logan and Anastasia Gillette. They have both worked around the country in fine dining establishments and have a combined twenty years in the restaurant industry. Upon working alongside each other at another fine dining establishment in Oklahoma City, the two of them became good friends and decided to venture into owning their own restaurant.

Chef Peter is the kitchen guru and critically acclaimed chef, while Anastasia manages the front of the house and is a certified Sommelier. Together, with both of their expertise and knowledge, Bluehorn Restaurant & Steakhouse is destined to become Oklahoma City’s next big restaurant.

Industry Analysis

The Restaurant industry is expected to grow to over $220 billion in the next five years.

Consumer spending is projected to grow. The Consumer Confidence Index, a leading indicator of spending patterns, is expected to also grow strongly, which will boost restaurant industry growth over the next five years. The growth in consumer confidence also suggests that more consumers may opt to segment their disposable income to eating outside the home.

Additionally, an increase in the number of households earning more than $100,000 annually further contributes to the industry growth, supporting industry operators that offer more niche, higher-end products.  This group is expected to continue to grow in size over the next five years.

The urban population represents a large market for the industry. Specifically, time-strapped individuals living in urban areas will likely frequent industry establishments to save time on cooking. The urban population is expected to increase, representing a potential opportunity for the industry.

Customer Analysis

Demographic profile of target market, customer segmentation.

Bluehorn Restaurant & Steakhouse will primarily target the following customer profile:

• Upper middle class to wealthier population
• Millennials
• Young professionals
• Households with an average income of at least $75k
• Foodies and culture enthusiasts

Competitive Analysis

Direct and indirect competitors.

Bluehorn Restaurant & Steakhouse will be competing with other restaurants in Oklahoma City. A profile of each competitor is below. The Press Located in the trendy area known as the Plaza District, The Press has reimagined our favorite foods of the surrounding regions through the lens of home.

The menu consists of appetizers, soups, burgers and sandwiches, bowls, main dishes, sides, desserts, and a large selection of alcoholic beverages. The Press serves craft beer, domestic beer, wine spritzers, house cocktails, wine, and mimosas. They also offer brunch. The menu of The Press is affordable with the most expensive dish being $16. The wine menu is also not pretentious as the wine is sold either by the glass or bottle, with the most expensive bottle being $52 for the Gruet Sparkling Brut Rose. Oak & Ore Oak & Ore is a craft beer and restaurant in OKC’s Plaza District. They have a 36-tap beer selection and offer vegetarian, vegan, and gluten free dining options. Oak & Ore offers a rotating, 36-tap selection of their favorite brews from Oklahoma and around the world. Each beer is thoughtfully paired with a craft beer-inspired dining experience.

The food menu of Oak & Ore offers starters, salads, wings, fried chicken, sandwiches, tacos, banh mi, and sides. They also have a selection of kids dishes so the whole family can enjoy comfort food while sampling one of their delectable beers.

The Mule OKC The Mule is a casual, hip restaurant offering a large beer and cocktail menu plus sandwiches and more. Located in the constantly growing and buzzing hub that is the Plaza District, The Mule takes the timeless favorite and contorts it into a whole menu of wild offerings.

There is also a fantastic assortment of soups offered and The Mule shakes up a seasonal list of cocktails designed by their bar staff. During the winter months, patrons can stave off the cold with their versions of hot toddies and buttered rum. For the beer drinkers, they always have a reliable line-up of fresh cold brews on draft, as well as a wide selection of can.

Competitive Advantage

Bluehorn Restaurant & Steakhouse offers several advantages over its competition. Those advantages are:

• Gourmet dishes elegantly prepared to the finest standard.
• Selection of steaks sourced from local Oklahoma farms.
• An exclusive and unique wine menu that includes a wine selection of all price points.
• Highly sought after location: Bluehorn Restaurant & Steakhouse will be located in the trendy and attractive neighborhood known as The Plaza District.
• Trendy, welcoming, and energetic ambiance that will be perfect for a night out or a celebration.

Marketing Plan

Promotions strategy.

The marketing strategy for Bluehorn Restaurant & Steakhouse is as follows: Location Bluehorn Restaurant & Steakhouse’s location is a promotions strategy in itself. The Plaza District is a destination spot for locals, tourists, and anyone looking for the trendiest food fare in Oklahoma City. The Plaza District is home to OKC’s most popular bars and restaurants, art galleries, theaters, and boutique shopping. The millennials, young professionals, and foodies will frequent Bluehorn Restaurant & Steakhouse for the location itself.

Social Media Bluehorn Restaurant & Steakhouse will use social media to cater to the millennials and Oklahoma City residents. Chef Peter and Anastasia plan to hire an advertising agency to take professional photographs of the menu items and location to create appealing posts to reach a greater audience. The posts will include pictures of the menu items, as well as upcoming featured options. SEO Website Marketing Bluehorn Restaurant & Steakhouse plans to invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local fine dining restaurant” or “Oklahoma City restaurant”, Bluehorn Restaurant & Steakhouse will appear in the top three choices. The website will include the full menu, location, hours, and lots of pictures of the food, drinks, and steaks. Third Party Delivery Sites Bluehorn Restaurant & Steakhouse will maintain a presence on sites like GrubHub, Uber Eats, Doordash, and Postmates so that people looking for local food to be delivered will see Bluehorn Restaurant & Steakhouse listed near the top.

Operations Plan

Operation functions:.

The company will hire the following:

• 4 sous chefs
• 2 bartenders
• 2 hostesses
• The company will hire an advertising agency and an accounting firm

Milestones:

Bluehorn Restaurant & Steakhouse aims to open in the next 6 months. The following are the milestones needed in order to obtain this goal.

7/1/202X – Execute lease for prime location in the Plaza District.

7/2/202X – Begin construction of restaurant build-out.

7/10/202X – Finalize menu.

7/17/202X – Hire advertising company to begin developing marketing efforts.

8/15/202X – Start of marketing campaign

8/22/202X – Final walk-thru of completed restaurant build-out.

8/25/202X – Hire team of sous chefs, servers, and bussers.

9/1/202X – Decoration and set up of restaurant.

9/15/202X – Grand Opening of Bluehorn Restaurant & Steakhouse

Bluehorn Restaurant & Steakhouse will be owned and operated by Chef Peter Logan and Anastasia Gillette. Each will have a 50% ownership stake in the restaurant.

Chef Peter Logan, Co-Owner

Chef Peter Logan is an Oklahoma City native and has been in the restaurant industry for over ten years. He was trained in a prestigious Le Cordon Bleu Culinary Academy in San Francisco and has worked in some of the nation’s most prestigious fine dining restaurants. His tenure has took him from the west coast to the east coast, and now he’s back doing what he loves in his hometown of Oklahoma City.

Chef Peter will manage the kitchen operations of Bluehorn Restaurant & Steakhouse. He will train and oversee the sous chefs, manage inventory, place food inventory orders, deal with the local food vendors, and ensure the highest customer satisfaction with the food.

Anastasia Gillette, Co-Owner

Anastasia Gillette was born and raised in Oklahoma City and has garnered over ten years in the restaurant industry as well. While in college, Anastasia worked as a hostess at one of the area’s most prestigious restaurant establishments. While there, she was eventually promoted to Front of the House Manager where she oversaw the hostesses, servers, bussers, bartenders, and reservations. Her passion always led to the beverage portion of the restaurant so she obtained her Sommelier certificate in 2019. With her wine education, Anastasia is able to cultivate an interesting and elegant wine selection for the restaurant.

Anastasia will oversee front of the house operations, maintain and ensure customer service, and manage all reservations. She will also be in charge of the bar and wine ordering, training of front of the house staff, and will manage the restaurant’s social media accounts once they are set up.

Financial Plan

Key revenue & costs.

The revenue drivers for Bluehorn Restaurant & Steakhouse will come from the food and drink menu items being offered daily.

The cost drivers will be the ingredients and products needed to make the menu items as well as the cooking materials. A significant cost driver is the fine dining equipment, serving dishes, and beer and wine glasses. Other cost drivers will be the overhead expenses of payroll for the employees, accounting firm, and cost of the advertising agency.

Funding Requirements and Use of Funds

Bluehorn Restaurant & Steakhouse is seeking $300,000 in debt financing to open its start-up restaurant. The breakout of the funding is below:

Financial Projections

Income Statement

  Balance Sheet

  Cash Flow Statement

Restaurant Business Plan FAQs

What is a restaurant business plan.

A restaurant business plan is a plan to start and/or grow your restaurant business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your restaurant business plan using our Restaurant Business Plan Template here .

What Are the Main Types of Restaurants?

There are many types of restaurant businesses. Restaurants can range in type from fast food, fast casual, moderate casual, fine dining, and bar and restaurant types. Restaurants also come in a variety of different ethnic or themed categories, such as Mexican restaurants, Asian restaurants, American, etc.  Some restaurants also go mobile and have food trucks.

How Do You Get Funding for Your Restaurant Business Plan?

Restaurant businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Another option for a restaurant business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates.

What are the Steps To Start a Restaurant Business?

1. Develop A Restaurant Business Plan - The first step in starting a business is to create a detailed restaurant business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your restaurant business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your restaurant business is in compliance with local laws.

3. Register Your Restaurant Business - Once you have chosen a legal structure, the next step is to register your restaurant business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your restaurant business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Restaurant Equipment & Supplies - In order to start your restaurant business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your restaurant business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful restaurant business:

• How to Start a Restaurant Business

Where Can I Get a Restaurant Business Plan PDF?

You can download our free restaurant business plan template PDF here . This is a sample restaurant business plan template you can use in PDF format.

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How to write a restaurant business plan

A small restaurant business plan is the roadmap you use to open a successful spot. As a first step to creating yours, ask your friends and colleagues to share restaurant business plan examples. Their restaurant business plan samples can inspire yours.

Once you’ve studied those examples, it’s time to start writing your own. No matter how much thought you’ve put into your concept or how many trusted colleagues have assured you of its greatness, you must write a restaurant business plan. It will prove the viability of your concept to potential investors and provide them with a clear and engaging answer to the question: “Why does the world need this restaurant?”

“The point of a business plan is to show that you’ve done your homework,” says Charles Bililies, owner of Souvla , a fine casual Greek restaurant in San Francisco that has received national acclaim since opening in the spring of 2014.

“You have to show any potential investor that you have an actual plan, you know what you’re talking about, it looks professional, and you’re not just screwing around.”

Quick links Branded cover Table of contents Concept Sample menu Service Management team Design Target market Location Market overview Marketing and publicity Specialists and consultants Business structure Financials

1. Branded cover

Include your logo (even if it’s not finalized), the date, and your name.

2. Table of contents

A table of contents in a restaurant business plan provides an organized overview of the document’s structure and content. It typically appears at the beginning of the plan and lists the major sections and subsections with their corresponding page numbers.

The table of contents is important for several reasons. Firstly, it allows readers to quickly navigate through the plan, enabling easy access to specific sections of interest. Secondly, it helps in presenting a professional and well-structured document, showing that you have carefully organized your thoughts and ideas. It also improves readability and comprehension, as readers can easily locate and refer back to relevant information

3. Restaurant concept

Describe your restaurant concept and get the reader excited about your idea. Specify whether the restaurant will be fine dining or more casual. Include an executive summary and go into detail about the food you’ll be serving, inspiration behind your concept, and an overview of service style.

Define clearly what will be unique about your restaurant and include your mission statement. This section should include a market analysis that shows how your restaurant will be similar and different from competing restaurants.

4. Sample menu

The menu is the most important touchpoint of any restaurant’s brand, so this should be more than just a simple list of items. Incorporate your logo and mock up a formatted menu design (tap a designer for help if needed).

Your sample menu should also include prices that are based on a detailed cost analysis. This will:

• Give investors a clear understanding of your targeted price point
• Provide the info needed to estimate check averages
• Show the numbers used create financial projections for starting costs
• Show investors that you’ve done the homework
• Prove you can stay within a budget

This section is most relevant for:

• Fine-dining concepts
• Concepts that have a unique service style
• Owners who have particularly strong feelings about what role service will play in their restaurant.

It can be a powerful way of conveying your approach to hospitality to investors by explaining the details of the guest’s service experience.

Will your restaurant have counter service and restaurant hostess software designed to get guests on their way as quickly as possible, or will it look more like a theater, with captains putting plates in front of guests simultaneously?

If an extensive wine program is an integral part of what you’re doing, will you have a sommelier? If you don’t feel that service is a noteworthy component of your operation, address it briefly in the concept section.

6. Management team

Write a brief overview of yourself and the team you have established so far. You want to show that your experience has provided you with the necessary skills to run a successful restaurant and act as a restaurant business owner.

Ideally, once you have described the strong suit of every member of your team, you’ll be presenting a full pitch deck. Most independent restaurant investors are in this for more than just money, so giving some indication of what you value and who you are outside of work may also be helpful.

Incorporate some visuals. Create a mood board that shows images related to the design and feeling of your restaurant.

Whether you’re planning to cook in a wood-burning oven or are designing an eclectic front-of-house, be sure to include those ideas. Photos of materials and snippets of other restaurants that you love that are similar to the brand you’re building are also helpful.

8. Target market

Who is going to eat at your restaurant? What do they do for a living, how old are they, and what’s their average income? Once you’ve described them in detail, reiterate why your specific concept will appeal to them.

9. Location

There should be a natural and very clear connection between the information you present in the “Target Market” section and this one. You probably won’t have a specific site identified at this point in the process, but you should talk about viable neighborhoods.

Don’t assume that potential investors will be familiar with the areas you’re discussing and who works or lives there—make the connections clear. You want readers to be confident that your restaurant’s “ideal” diner intersects with the neighborhood(s) you’re proposing as often as possible.

If you don’t have a site , this is a good place to discuss what you’re looking for in terms of square footage, foot traffic, parking, freeway accessibility, outdoor seating , and other important details.

10. Market overview

Address the micro and macro market conditions in your area and how they relate to licenses and permits. At a macro level, what are the local and regional economic conditions?

If restaurants are doing poorly, explain why yours won’t; if restaurants are doing well, explain how you’ll be able to compete in an already booming restaurant climate. At a micro level, discuss who your direct competitors are. Talk about what types of restaurants share your target market and how you’ll differentiate yourself.

11. Marketing and publicity

The restaurant landscape is only getting more competitive. Discuss your pre- and post-opening marketing plans to show investors how you plan to gain traction leading up to opening day, as well as how you’ll keep the momentum going.

If you’re going to retain a PR/marketing company, introduce them and explain why you’ve chosen them over other companies (including some of their best-known clients helps). If not, convey that you have a solid plan in place to generate attention on your own through social media, your website , and media connections.

12. Specialists and consultants

List any outside contractors you plan to retain, such as:

• General contractor
• PR and marketing

Briefly explain the services they’ll be providing for you, why you chose them, and any notable accomplishments.

13. Business structure

This section should be short and sweet. What type of business structure have you set up and why did you make that specific decision? You will need to work with an attorney to help you determine what business structure is best for you.

“Step one: write a business plan. Step two: hire a good attorney. In addition to helping me build a smart, sustainable business structure, my attorney was also a great resource for reviewing my business plan because she’s read thousands of them. She was a very helpful, experienced outside perspective for more than just legal matters,” says Charles Bililies.

14. Financial projections

Let your accountant guide you through this portion of your business plan. It is crucial that whoever you hire to help you with your finances has a wealth of restaurant experience (not just one or two places). They should be familiar with the financial specifics of starting a restaurant and know what questions to ask you.

Before creating realistic financial projections, your accountant will want to know:

• How many seats the restaurant will have
• What your average check will be
• How many covers per day you plan to do

Being conservative in these estimations is key. These three data points will be used as the basis for figuring out whether your concept is financially feasible.

Lou Guerrero, Principal at Kross, Baumgarten, Kniss & Guerrero, emphasizes, “You’ll get a lot of accountants that tell you that they’ve done a couple of restaurants, but you have to choose someone that has a deep expertise in what you’re doing. There’s nothing to gain from going with someone that doesn’t have a very restaurant-centric practice.”

A well-vetted accountant with restaurant experience will know exactly what you’ll need to have prepared to show investors.

The key projections you can expect to work on are:

• Pro forma profit and loss statement for the first three to five years of operation
• Break even analysis
• Capital requirements budget

Writing a comprehensive restaurant business plan is a crucial step towards opening a successful establishment. By seeking inspiration from examples, demonstrating your expertise, and addressing all the essential components, you can prove the viability of your concept to potential investors.

Remember, a well-prepared business plan demonstrates professionalism and a clear understanding of your goals, increasing your chances of achieving long-term success in the competitive restaurant industry.

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How to Write a Restaurant Business Plan: A Step-by-Step Guide

• Business , Restaurants
• April 1, 2023

If you’re planning to start a restaurant, writing a business plan is a crucial step. A well-written business plan serves as a roadmap for your restaurant, outlining your goals, strategies, and financial projections. It’s also a document that potential investors or lenders will want to see before they consider investing in your restaurant.

Writing a restaurant business plan can seem daunting, but it doesn’t have to be. The key is to break it down into manageable sections and take it one step at a time. In this article, we’ll walk you through the essential elements of a restaurant business plan and provide tips on how to write each section effectively.

Executive Summary

The executive summary is a critical part of your restaurant business plan, as it provides an overview of your entire plan. It should be concise and clear, highlighting the most important aspects of your business plan.

In this section, you should include:

• A brief introduction to your restaurant concept and target market
• Your mission statement and core values
• A summary of your management team and their experience
• A description of your menu and pricing strategy
• A financial summary, including startup costs, projected revenue, and profit margins

Keep in mind that the executive summary is often the first part of your business plan that potential investors or lenders will read. Therefore, it’s important to make a strong first impression and clearly communicate the key points of your plan.

Overall, the executive summary should be no more than one or two pages long, and should be written in a clear and concise manner. It should be easy to read and understand, and should leave the reader with a clear understanding of your restaurant concept and the potential for success.

Market Analysis

Before starting a restaurant business, it is essential to conduct a thorough market analysis to understand the market trends, competition, and target customers. The market analysis section of the business plan should provide a detailed overview of the restaurant industry’s current state and future growth potential.

One way to conduct market research is by analyzing industry reports, such as those published by the National Restaurant Association. These reports provide valuable insights into consumer trends, industry growth rates, and market size. Additionally, researching local competition and their offerings can help identify gaps in the market and opportunities for differentiation.

Another critical aspect of market analysis is identifying the target market. Understanding the demographics, preferences, and behaviors of potential customers is crucial in developing a successful restaurant concept. This information can be gathered through surveys, focus groups, and analyzing customer data from similar businesses.

Finally, it is essential to analyze the economic and regulatory environment in which the restaurant will operate. Factors such as minimum wage laws, health and safety regulations, and taxes can significantly impact a restaurant’s profitability.

Overall, a comprehensive market analysis is crucial in developing a successful restaurant business plan. By understanding the market trends, competition, and target customers, entrepreneurs can create a unique concept that meets the needs of their customers and stands out in a crowded industry.

Menu and Services

One of the most important aspects of a restaurant business plan is the menu and services section. This section outlines the types of food and beverages that will be offered, as well as the overall dining experience that customers can expect.

When developing your menu, it’s important to consider the target market and what types of cuisine they prefer. It’s also important to consider the cost of ingredients and the profit margins for each dish. Offering a variety of options, including vegetarian and gluten-free choices, can help attract a wider customer base.

In addition to the menu, the services section should outline the overall dining experience. This includes details such as the style of service (e.g. casual, fine dining), the ambiance of the restaurant, and any additional services offered (e.g. catering, delivery). It’s important to consider the competition in the area and what unique services or experiences your restaurant can offer to stand out.

Tables and bullet points can be useful in conveying information about the menu and services. For example, a table could be used to list the different menu items and their prices, while bullet points could be used to highlight any special promotions or events.

Overall, the menu and services section of a restaurant business plan is crucial in outlining the types of food and experiences that customers can expect. By carefully considering the target market, competition, and costs, you can develop a menu and service offering that will attract and retain customers.

Marketing and Sales Strategies

Marketing and sales are crucial components of any restaurant business plan. Without effective marketing and sales strategies, your restaurant may struggle to attract customers and generate revenue. In this section, we’ll discuss some key strategies for promoting and selling your restaurant’s products and services.

Target Market

Before you can develop effective marketing and sales strategies, you need to identify your target market. Who are your ideal customers? What are their demographics, interests, and behaviors? By understanding your target market, you can tailor your marketing and sales efforts to appeal to their specific needs and preferences.

Online Presence

In today’s digital age, having a strong online presence is essential for any business. Make sure your restaurant has a professional website that showcases your menu, location, and hours of operation. You should also create social media accounts on platforms like Facebook, Twitter, and Instagram. These channels can help you connect with potential customers and promote your restaurant’s offerings.

Promotions and Special Offers

Offering promotions and special deals can be an effective way to attract new customers and encourage repeat business. Consider offering discounts on certain menu items or hosting special events like wine tastings or live music nights. You can also use email marketing campaigns to promote your restaurant’s latest offerings and deals.

Customer Service

Finally, don’t overlook the importance of excellent customer service. Providing a positive dining experience can help you build a loyal customer base and generate positive word-of-mouth referrals. Train your staff to be friendly, attentive, and knowledgeable about your menu and offerings.

Management and Staffing

One of the key factors for any successful restaurant is having a strong management team in place. This includes a general manager, kitchen manager, and front-of-house manager. Each of these positions has unique responsibilities that are critical to the restaurant’s success.

The general manager oversees all aspects of the restaurant, including finances, marketing, and staffing. They are responsible for creating and implementing policies and procedures that ensure the restaurant runs smoothly and efficiently.

The kitchen manager is responsible for managing the kitchen staff, ordering supplies, and ensuring that all food is prepared to the highest standards. They must have a deep understanding of food safety and sanitation regulations, as well as excellent organizational and communication skills.

The front-of-house manager is responsible for managing the waitstaff, bartenders, and host/hostess staff. They must have excellent customer service skills and be able to handle any customer complaints or issues that arise. They are also responsible for creating schedules and ensuring that the restaurant is properly staffed at all times.

When it comes to staffing, it’s important to hire people who are passionate about the restaurant industry and committed to providing excellent customer service. This includes waitstaff, bartenders, and kitchen staff. It’s also important to provide ongoing training and development opportunities to ensure that staff members are equipped with the skills they need to succeed.

Having a strong management team and dedicated staff is critical to the success of any restaurant. By investing in your team and creating a positive work environment, you can ensure that your restaurant is well-positioned for long-term success.

Financial Analysis and Projections

As you develop your restaurant business plan, it is essential to include a section on financial analysis and projections. This section should provide a detailed overview of your restaurant’s financial health and future growth potential. Here are some key elements to include:

Revenue Projections

One of the most critical aspects of your financial analysis is revenue projections. This section should include a detailed breakdown of your restaurant’s expected revenue streams, including food and beverage sales, catering, and any additional revenue streams. Use tables and charts to make this information more accessible to readers.

Cost Analysis

Another essential component of your financial analysis is a detailed cost analysis. This section should include a breakdown of all your restaurant’s expenses, including rent, utilities, food costs, and labor costs. Use bullet points to make this information easier to read and understand.

Cash Flow Analysis

Your financial analysis should also include a detailed cash flow analysis. This section should provide an overview of your restaurant’s cash flow, including cash inflows and outflows. Use tables and charts to make this information more accessible to readers.

Profit and Loss Statement

Finally, your financial analysis should include a detailed profit and loss statement. This section should provide an overview of your restaurant’s revenue, expenses, and net income. Use tables and charts to make this information more accessible to readers.

By including a detailed financial analysis and projections section in your restaurant business plan, you can provide potential investors and lenders with a clear picture of your restaurant’s financial health and future growth potential. Use tables, bullet points, and other HTML tags as necessary to make this information more accessible to readers.

Here are a few additional resources that can help you with your restaurant business plan:

• Sample business plans:  Look for sample business plans online to get an idea of what a successful restaurant business plan looks like. You can find templates and examples on websites such as Bplans, LivePlan, and SCORE.
• Industry research:  Conduct thorough research on the restaurant industry to understand your target market, competition, trends, and challenges. Use resources such as the National Restaurant Association, industry publications, and market research reports.
• Financial projections:  Use financial modeling tools such as Excel or software such as LivePlan to create realistic financial projections for your restaurant. Make sure to include all costs, revenue streams, and contingencies.
• Legal requirements:  Consult with a lawyer to ensure that you have all the necessary permits, licenses, and contracts in place. This includes registering your business, obtaining food and alcohol licenses, and complying with health and safety regulations.

Remember that your restaurant business plan should be a living document that you update and refine regularly. It should guide your decision-making, help you secure funding, and keep you focused on your goals. With a well-written and well-researched business plan, you can increase your chances of success in the competitive restaurant industry.

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Restaurant Business Plan: Step-by-Step Guide + examples

Dreaming of opening a 🍴 restaurant? Passion, creativity, and delicious food are key. But for long-term success, a business plan is essential too.

Maja Jankowska

Are you dreaming of owning your own restaurant? Picture the sizzle of a hot skillet, the laughter of satisfied guests, and the fulfillment of sharing your culinary creations with the world. But before you dive into this flavorful adventure, there’s a crucial ingredient you can’t overlook: a winning restaurant business plan.

What is a business plan for?

A business plan is a vital document for every restaurant owner. It provides a roadmap for success, helps secure funding, guides financial and operational decisions, mitigates risks, and facilitates effective communication. 

Just like any other business, a restaurant needs a well-crafted business plan to ensure its success and sustainability. Without a business plan, you risk operating in the dark, making decisions on a whim, and facing unexpected challenges that could have been avoided. 

Investing time and effort into creating a solid business plan sets your restaurant on the path to achieving your culinary dreams and exceeding customer expectations.

Create Restaurant’s Business Plan in these 9 steps:

✔️ 1. Start with an executive summary ✔️ 2. Describe your concept ✔️ 3. Conduct Market analysis ✔️ 4. Define your management and organization ✔️ 5. Give a sample “yummy”  Menu ✔️ 6. Create design and branding ✔️ 7. Provide a Location ✔️ 8. Establish Marketing plan ✔️ 9. Define Financial plan

1. Executive summary

The executive summary is like the appetizer of your restaurant business plan – it’s the first bite that leaves a lasting impression. Its purpose is to capture the essence of your entire plan and entice time-crunched reviewers, such as potential investors and lenders, to delve deeper into your vision. It’s worth noting that the executive summary should be the final section you write.

To craft a concise and captivating summary, it’s crucial to highlight key points, including your unique concept, target market, and financial projections. Additionally, bear in mind that the executive summary sets the tone for the rest of your plan, so it’s essential to make it irresistible and leave readers yearning for more.

When it comes to the executive summary of your restaurant business plan, brevity is key . You have only one page to capture the attention of readers, but don’t worry, it’s definitely doable. Here’s what your executive summary should include:

• Restaurant concept : What does your business do?
• Goals and vision : What does your business want to achieve?
• Restaurant differentiation : What makes your menu/concept different, and what sets you apart?
• Projected financial state : What revenue do you anticipate?
• The team : Who is involved in the business?

2. Describe your concept

In the world of restaurant business plans, there’s a section that holds immense importance. It’s the one that answers two fundamental questions: Who are you, and what do you plan to do?

This is the section where you fully introduce your company, and it deserves special attention. Share all the important details that paint a vivid picture of your unique business. Include the restaurant’s name, location, and contact information. Additionally, provide relevant details such as the chef’s background and what makes your restaurant stand out in the market.

Curious about concept creation? Watch our short video featuring a summary of an example restaurant concept below! 👇

Now is your opportunity to showcase your vision and establish a unique identity for your restaurant. Utilize this section to highlight what sets you apart and capture the reader’s imagination.

3. Market analysis

Market analysis helps you understand your potential customers, competition, and overall restaurant market trends. It’s like having a crystal ball to shape your restaurant’s success.

Target audience 

When it comes to your potential market, you want to know how many people are hungry for what you’re serving. Sounds exciting, right? To estimate this, you’ll gather data on your target customers, like their age group or preferences, and combine it with industry trends. It’s like finding the perfect recipe to satisfy their cravings.

Competition

Now, let’s tackle the competition. Every restaurant has rivals, even if they’re serving a unique dish. It’s crucial to identify direct or indirect competitors and understand what makes you stand out. Are you offering affordable prices, a one-of-a-kind experience, or catering to a specific niche? Highlight your “secret sauce” that sets you apart from the rest.

Market analysis for restaurant’s business plan

Market analysis also involves a SWOT analysis. Don’t let the jargon scare you. It simply means evaluating your strengths, weaknesses, opportunities, and threats. Think of it as a superhero assessment for your restaurant. Identify what you excel at, areas for improvement, potential market opportunities, and external factors that could impact your success.

Example of SWOT analysis for a restaurant

Remember, market analysis is like a compass guiding your restaurant’s journey. It helps you make informed decisions, attract investors, and stay ahead of the game. So, embrace the power of market analysis, and let it shape the destiny of your delicious dining destination.

4. Management and organization

Effective management and organization are critical for success in the restaurant sector. This section of your business plan introduces the talented individuals who will lead your restaurant to new heights.

Outline your legal structure, whether it’s an S corporation, limited partnership, or sole proprietorship, providing key information for stakeholders.

Showcase your management team using an organizational chart to highlight their roles, responsibilities, and contributions. Their expertise and guidance are crucial for seamless operations and exceptional customer experiences.

With a strong management team in place, your restaurant is poised for success. They are the driving force behind your journey to greatness. Let’s meet the key players who will make it happen!

Streamline your operations and optimize your financial performance With resOs , you can efficiently manage reservations, track inventory, analyze sales data, and streamline your overall workflow. Get your FREE plan

5. Sample “yummy” Menu 

In the restaurant industry, your menu plays a main role as the core product. Include a section in your business plan that highlights key details about your menu offerings to engage readers.

If you offer a diverse range of dishes, provide a brief overview of each category. Alternatively, if your menu focuses on specific specialties or signature dishes, provide more detailed descriptions for each item.

You can also mention any upcoming menu additions or unique culinary creations that will enhance profitability and attract customers.

6. Design and branding 

When it comes to starting a restaurant, don’t underestimate the power of design and branding. They’re the secret ingredients that can make your establishment truly stand out. Think about it – when customers walk through your front door, what do they see? The right design and branding can instantly captivate their attention and make them feel right at home.

So, take some time to envision the overall aesthetic and mood you want to create.

Do you imagine a cozy and rustic setting or a sleek and modern vibe?

Let your creativity shine through! Include captivating photos of similar restaurants that inspire you and give potential investors a glimpse of your vision.

And don’t forget about your logo! If you’ve already designed one, proudly showcase it in your business plan. It’s the visual representation of your restaurant’s personality and will help establish brand recognition.

resOS’ customizable interface for your booking system

Stand out in the competitive restaurant industry with resOS’ customizable booking management system . Personalize every aspect of the interface to reflect your restaurant’s unique brand identity. Seamlessly integrate your logo, colors, and visual elements, creating a cohesive and immersive experience for your guests. With resOS, you have the power to revolutionize your restaurant’s image and leave a lasting impression.

Details matter too! Share your plans for specific design elements , from the choice of furniture to the color palette that will adorn your space. The more you paint a vivid picture, the more investors and customers will be enticed by your unique ambiance.

7. Location

For a restaurant, location can make or break the business. Occasionally, a restaurant concept is so good that people go out of their way to find it. But, more realistically, your location needs to be convenient for your target market. If it’s hard for your customers to get to you, hard for them to park, and not something they notice as they drive by, they’re unlikely to check your restaurant out.

In your business plan, make sure to discuss the potential locations that you hope to occupy, assuming you haven’t already secured the location. Explain why the location is ideal for your target market and how the location will help attract customers.

Unlock the potential of your restaurant’s location and streamline reservations with resOS. Our platform offers seamless integration with Reserve With Google , allowing customers to easily discover and book tables directly from Google search results and maps. By enabling this feature, you’ll maximize your restaurant’s visibility and attract more diners with just a few clicks. Experience the power of location-based reservations with resOS .

Be sure to explain the complete costs of your location and what kinds of renovations will be necessary to open your restaurant.

8. Marketing plan

In today’s competitive restaurant industry, it’s important to showcase your marketing strategy to investors. They want to know how you’ll create buzz and keep it going before and after your grand opening.

Create a winning business plan with a strong marketing focus. Our Restaurant Business Plan Steps Graphic (👆 see above) is your visual guide, including key marketing strategies. Download or save for later and plan your path to success.

Whether you’ve enlisted a top-notch Marketing company or have a solid ready-to-go marketing plan, highlight your chosen path. Discuss the unique strengths of your selected agency and why they stand out, including their notable clients. Alternatively, showcase your in-house plan, leveraging social media, your website, and valuable media connections.

A well-crafted marketing plan holds the key to differentiating your restaurant and attracting customers. Prepare to tantalize taste buds and offer an exceptional dining experience. Stay in tune with the latest restaurant industry trends, leverage effective marketing tools, and optimize your online presence. 

Lastly, integrate a robust restaurant booking system to streamline reservations and enhance the overall customer experience. With these strategic elements in place, success is within your reach.

9. Financial Plan

Financial analysis is a crucial part of your restaurant’s business plan. It helps investors assess the profitability of your concept and whether it’s a worthwhile investment. In this section, you’ll outline how you plan to allocate your funds in the first year and provide projections for costs and revenues.

Here are the 🔑 key components to include:

Investment Plan: Explain the initial investment costs, such as kitchen equipment, furniture, employee wages, legal fees, marketing expenses, and working capital. This shows how you’ll use your funds effectively.

Profit and Loss Projection: Estimate your restaurant’s costs and sales figures in the profit and loss statement. Consider factors like the size of your establishment, your target market, and the existing competition in your chosen location.

Break-Even Analysis: Show investors the monthly revenue you need to achieve to cover all your expenses and reach profitability. This analysis considers overhead costs, operational expenses, and factors that may affect revenue fluctuations throughout the year.

Claim your FREE plan on resOS today! Ready to revolutionize your business management? Join resos.com for FREE and take control of your operations. ✅ Seamless calendar integration ✅ Customizable booking forms ✅ Automated reminders ✅ Real-time availability updates Don’t miss out! Sign up now at resos.com and experience stress-free scheduling. Your time is valuable, so claim your FREE plan today!

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How to Start a Restaurant: A Step-by-Step Guide

Opening a restaurant can be an exciting and rewarding experience. Whether you’re passionate about cooking or hospitality, there are many factors to consider before getting started. This step-by-step guide will help you navigate the process of starting your own restaurant, from creating a business plan to obtaining the necessary licenses and permits.

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An Introduction to Starting a Restaurant

Starting a restaurant can be an exciting and rewarding venture. Not only do you get to share your love for food with others, but you also have the opportunity to create a welcoming atmosphere for customers to enjoy. However, it’s important to understand that running a restaurant comes with its own set of challenges and rewards.

Why start a restaurant?

There are many reasons why people choose to start a restaurant. For some, it’s a passion for cooking and the desire to share their culinary creations with others. For others, it’s the opportunity to create a unique concept that stands out in the market. Whatever your motivations may be, it’s important to have a clear understanding of what you hope to achieve with your restaurant.

One of the most rewarding aspects of running a restaurant is the ability to create a welcoming atmosphere for customers. Whether it’s a cozy cafe or a fine dining establishment, the ambiance of your restaurant can make all the difference in the dining experience. Additionally, owning a restaurant allows you to be your own boss and have more control over your work-life balance.

However, it’s important to note that starting a restaurant can be a challenging endeavor. From managing staff to keeping up with food safety regulations, there are many aspects of the business that require careful attention. It’s important to be prepared for the hard work and dedication that comes with running a successful restaurant.

Types of restaurants to consider

When starting a restaurant, it’s important to consider what type of establishment you want to open. There are many different types of restaurants to choose from, each with their own unique challenges and advantages.

Casual dining restaurants are a popular option for those looking for a more laid-back atmosphere. These restaurants typically offer a variety of menu items at an affordable price point. Fast food restaurants are another option to consider. These establishments are known for their quick service and convenience, making them a popular choice for those on the go. Fine dining restaurants offer a more upscale dining experience, with higher prices and a focus on quality ingredients and presentation. Cafes and coffee shops are a great option for those looking to create a cozy atmosphere for customers to relax and enjoy a cup of coffee or a light meal.

Ultimately, the type of restaurant you choose to open will depend on your interests and business goals. It’s important to carefully consider your options and choose a concept that aligns with your vision for your restaurant.

1. Creating a Solid Business Plan

Let’s explore one of the first steps of starting a restaurant business: writing out your business plan .

Defining your restaurant’s concept

Before you can create a business plan, you need to define your restaurant’s concept. This includes the type of cuisine you’ll serve, the atmosphere you want to create, and the target market you hope to attract. By understanding your concept, you can create a more effective business plan and make informed decisions about your restaurant’s future.

When it comes to defining your restaurant’s concept, there are a few key factors to consider. First, the type of cuisine you’ll serve is a crucial element. Decide whether you’ll specialize in a particular type of cuisine, such as Italian or Mexican, or whether you’ll offer a more diverse menu.

Secondly, the atmosphere you want to create is important. Determine whether you want your restaurant to be casual and relaxed, or more upscale and formal. Lastly, consider your target market — who you want to attract to your restaurant, like families with children or young professionals. By finding these answers, you can start to develop a clear vision for your restaurant’s concept.

Market research and analysis

Market research is an essential part of creating a successful restaurant. You need to understand your competition, target audience, and potential opportunities for growth. This includes conducting surveys, analyzing data, and staying up to date with industry trends. By doing so, you can identify potential challenges and develop strategies for success.

When conducting market research, it’s important to look at both local and national trends. Explore whether there are any popular food trends that you can capitalize on or any gaps in the market that you can fill. Additionally, you should look at your competition — what they’re doing well and what they could improve on. By analyzing your competition, you can identify areas where you can differentiate yourself and stand out from the crowd.

Financial projections and funding

Once you have a solid business plan in place, you need to consider how much it will cost to start and run your restaurant. This includes everything from equipment and supplies to staffing and marketing. It’s important to create realistic projections and secure funding before you open your doors. This may include loans, investors, or personal savings.

When creating financial projections, it’s important to be as accurate as possible. Consider all of your expenses, including rent, utilities, and insurance, as well as your expected revenue. Additionally, think about how long it will take for your restaurant to become profitable and plan accordingly. When it comes to small business funding , there may be several options available to you. You may be able to secure a loan from a bank or online lender, or you could seek out investors who are interested in supporting your business. Alternatively, you could use your personal savings to fund your restaurant.

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2. Choosing the Perfect Location

Choosing the perfect location for your restaurant is crucial to its success. The right location can help you attract more customers and increase your revenue. However, finding the perfect location can be challenging and requires careful consideration of several details.

Factors to consider when selecting a location

One of the most important issues is foot traffic. Choose a location that has a lot of foot traffic since this will increase the visibility of your restaurant and attract more customers.

Parking availability is another important factor to consider. A location that has ample parking space can make it easier for your customers to get to you. If parking is limited, customers may be discouraged from visiting your restaurant.

Competition in the area is also an important factor to consider. Pick a location that has minimal direct competition or a unique concept that sets you apart from your competitors. Try not to open an Italian restaurant in the same locale as a Sicilian pizza restaurant, for example. 

It’s also important to think about your target audience and the surrounding community. If your restaurant caters to families, you may want to choose a location that is close to residential areas. If your restaurant caters to young professionals, you may want to choose a location close to business districts.

By choosing a location that aligns with your restaurant’s concept and goals, you can increase your chances of success.

Negotiating a lease or purchasing property

Once you have identified potential locations, you’ll need to negotiate a lease or purchase property. This can be a complex process, and there are several steps to take.

First, it’s helpful to seek legal advice and understand the terms of the agreement before signing a lease or purchasing property. Make sure that the terms are favorable to your restaurant and that you’re not taking on too much financial risk.

You may also need to work with contractors and designers to customize the space to fit your restaurant’s needs. This can be a time-consuming and expensive process, but it’s important to create a space that is functional, aesthetically pleasing, and aligned with your restaurant’s concept.

By taking the time to research and evaluate potential locations, you can increase your chances of success in creating a thriving business.

3. Designing Your Restaurant Space

Here are several factors to consider when creating a restaurant design. 

Creating a functional layout

The layout of your restaurant can make or break the success of your business. A well-designed layout will not only maximize the use of space but also ensure smooth operations. When creating a functional layout, it’s important to consider the flow of customers and employees as well as the placement of kitchen equipment and seating arrangements.

Where you put the kitchen is one of the biggest things to take into account. The kitchen should be easily accessible from the dining area to ensure your staff can serve food quickly and efficiently. Also, consider the placement of kitchen equipment such as ovens, stoves, and refrigerators. These should be placed strategically to make sure that chefs can easily access them and prepare food quickly.

Another important consideration is the seating arrangement. The layout should allow for comfortable seating and easy movement for both customers and staff while maximizing the number of potential customers at one time. Leave enough space between tables for customers to move around and make sure that staff can easily navigate between tables without disrupting customers.

Interior design and ambiance

The interior design of your restaurant plays a crucial role in creating a welcoming and memorable dining experience. The right ambiance can set the tone for the entire experience and increase customer satisfaction and loyalty.

One important element to consider is lighting. Lighting should be warm, inviting, and not too bright or too dim. The right lighting can create a cozy and intimate atmosphere while also highlighting the décor.

Music is another important element to consider. The right music can create a lively and energetic atmosphere or a mellow and calm feeling while also enhancing the overall dining experience. It’s important to choose music that’s appropriate for your restaurant’s theme and target audience.

The décor is also an important element of the restaurant’s ambiance. All decoration should be consistent with the restaurant’s theme and create a cohesive and visually appealing space. This may include artwork, plants, and other decorative elements.

Kitchen equipment and supplies

The kitchen equipment and supplies you choose for your restaurant can have a significant impact on the quality of your food and the safety of your employees. It’s important to invest in high-quality equipment and supplies that meet industry standards and your restaurant’s specific demands.

When choosing kitchen equipment, consider factors such as durability, ease of use, and energy efficiency. Also, try to pick equipment that is appropriate for the size of your restaurant and the volume of food you plan to serve.

In addition to equipment, it’s important to choose high-quality utensils and cookware. These should be durable and easy to clean to ensure that your kitchen runs smoothly and your food is prepared to the highest standards.

Overall, designing your restaurant space requires careful consideration of a variety of factors. By creating a functional layout, a welcoming ambiance, and investing in high-quality equipment and supplies, you can create a successful and memorable dining experience for your customers.

4. Obtaining Licenses and Permits

To serve food legally, you’ll need to get the appropriate licensing and permits for your business. 

Food service license

Obtaining a food service license is essential for starting a restaurant. Getting this license requires meeting health and safety standards and going through the process for necessary permits and inspections. It’s important to research the requirements in your area and work with local officials to ensure compliance.

Liquor license

If you plan to serve alcohol in your restaurant, you’ll need to get a liquor license. This license requires meeting specific regulations and obtaining necessary approvals. Make sure you understand the process and requirements in your area before applying.

Health and safety permits

Various health and safety permits may be required for your restaurant, depending on factors such as food handling and waste disposal. Research the requirements in your area and work with local officials to ensure compliance. This regulation often requires regular inspections and renewals.

The Bottom Line

Starting a restaurant requires careful planning and execution. By following these steps and seeking guidance from experienced professionals, you can increase your business’s chances of success and create a memorable dining experience for your customers. They’ll soon be spreading the word about the delicious new restaurant in town.

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This article was originally written on December 4, 2023.

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How to Start a Successful Restaurant

Lisa Furgison

11 min. read

Updated March 18, 2024

Free Download:  Sample Restaurant Business Plan Templates

If you’ve wanted to start a restaurant for years, it might be time to sit down and draw up a plan to open your own business. To help you create a recipe for success, we’ve put together a how-to-get-started guide to make sure you have all the ingredients you need to open your restaurant with confidence.

While starting a restaurant is exciting, it’s also time-consuming and one of the toughest businesses to successfully launch. In fact, 60 percent of restaurants fail in the first year.

We’re not telling you this to temper your passion. We’re merely pointing out that if you want a successful restaurant, you’ll need to invest some serious time and money.

Why do many restaurants fail?

What’s the biggest reason for failure? Lack of planning. Before you ever make dinner for a customer, you’ll spend a lot of time figuring out every detail of your restaurant. From kitchen appliances and menus to floors plans and staff selections, the planning stage will make or break your restaurant.

To help you plan, fund, and manage your new restaurant, we’ve asked a couple of owners to share their trade secrets. Kim Strengari owns three successful restaurants in the Philadelphia region, including Stella Blu , and Lambrine Macejewski is the co-founder of Cocina 214, a contemporary Mexican restaurant in Winter Park, Florida. Omer Orian, co-founder of Off the Waffle, has three locations—two in Eugene, Oregon and one in Portland. Below are their tips for success.

Tips for starting a successful restaurant

• 1. Have the right intentions

If you want to make it as a restaurant owner, you have to love what you do, Kim Strengari says. While she knew a restaurant was the right path for her, she had to work nights cleaning office buildings to make ends meet when she first opened her restaurant.

“I wanted the restaurant more than anything else in life, so the sacrifices were endless and I never minded making them,” she says.

To be successful, you’ll invest a lot of time and money—so make sure that starting a restaurant is your passion, not just a business venture you hope will make money. “It’s harder than you can imagine,” says Omer Orien, “but people do it all the time. It’s not at all dreamy.”  

In these early days, it’s also a good idea to figure out what you want your restaurant to look like. What will be your restaurant’s aesthetic? What furniture will you need to purchase to fit the theme? How will you lay your restaurant out? Trent Furniture, a British furniture company, has a great article on the topic to help you get started.

Orien says, “A lot of it has to do with figuring out what kind of environment you want to work in, what will make you feel the way you want to feel. It also doesn’t hurt to have people in your life who have an eye for design.” Orien sat down with his co-founders and built a 3-D model to plan the layout of their first location. And ultimately, they did most of the work to build out the space themselves.

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• 2. Have a solid business plan in place

You can’t scratch a business plan out on a cocktail napkin. You need a detailed business plan that charts the course for your success. That said, we suggest beginning with a one-page plan  that keeps the business planning process simple. Think of your business plan as a living document that you return to regularly to help you plan for growth and measure your progress.

Orien says that he really got serious about his business plan when it was time to grow and expand to a new location. It helped them figure out what was feasible and figure out how to move forward.

Your business plan should include market research , a comprehensive look at your competitors, information on your target audience, an outline of your marketing plan, and a solid financial and budgeting projection. To get you started, check out these templates specifically for restaurant planning.

As you think about what you want your restaurant to look like, don’t forget to keep an eye on industry trends . As with any startup, timing is key.

Pay special attention to your marketing plan

You can only rely on word of mouth to bring in so many customers, so you’ll need a marketing  plan in place to keep new people streaming through your doors.

Here are a few ideas:

• Participate in community events and give out food samples
• Offer discounts to new customers
• Join the local business association
• Utilize social media channel s
• 3. Location, location, location

With a restaurant, location is everything . You need a spot that draws crowds, is easily accessible, and has the potential for growth. Of course, you need a location that fits within your budget too.

It makes sense to take your time, as you’re looking for the right space. You might also want to do some research to find out of there are any startup incubator spaces for restaurants that you can join to keep initial costs low and that might come with mentorship opportunities. Whether you decide to rent space or build from scratch, selecting a location is one of the biggest decisions you’ll make as an owner. But you don’t have to do a huge build out at first.

When Orien was ready to launch Off the Waffle, he says he only had $3,000 to get the business started. “It sounds impossible,” he says, “but we found a bunch of hacks to make it work. We found a house that was actually in a commercial zone, so we were able to live and work in the same place.”

Orien’s three locations are all dedicated restaurant spaces, but it’s a good reminder to start small. “Once you’re $300,000 into a buildout for your location, it’s not like a house that you can just sell. There’s not a lot of retained value, he says. You’re sort of stuck with it.” So it makes sense to think it all through and test a smaller scale version before taking a huge and expensive leap.

• 4. Test your menu

Approach building your menu like an experiment. Consider having a dinner party featuring your proposed menu where you ask people for their honest feedback.

But don’t just invite your closest friends and family members. You might love the taste of a certain dish, but if customers won’t pay for it or aren’t keen on its taste, you won’t make money. When you ask for feedback, consider using a method that allows anonymous comments so that you get people’s honest reactions. Do your market research. Visit other restaurants to get a sense of appropriate pricing.

Orien says that when Off the Waffle first launched, there were only two items on the menu: a liege waffle and a glass of milk. He tested a lot of different ideas, including folding ingredients into the waffle dough and stuffing waffles like a pita pocket. Those approaches didn’t really delight their customers. So they moved on to interesting waffle toppings, and people loved it.

• 5. Hire essential help

How many people do you need on staff to get started? Some restaurant pros advocate for bringing on a manager prior to opening day, but think through your biggest needs. Do you need a dishwasher? How many cooks? What about servers? Take your time as you hire staff. Consider doing a soft opening so you can see how smoothly things run with just a few essential positions.

When Orien launched his first restaurant, the only employees were family. They scaled up slowly, but now they have around 50 employees working at their three locations. “When we started, we were newbies, so if we hired too quickly, we would have had trouble paying people a salary that would have brought in people with enough skills to make up for our inexperience. Over time, we learned how to do all the roles.” But now, he says if he opened a fourth location, it would be a natural progression to hire a manager right off the bat. He’s in a better position to be able to train them well.

Invest in training your employees

To better manage your staff, make sure you have employee training materials ready. Create job descriptions, codes of conduct, and an employee handbook. Create a training guide so employees are well prepared for their respective positions. Document recipes for your cooks so every meal is made to perfection. In other words, give your employees all of the necessary tools to succeed, Macejewski says.

Be willing to fill in where needed

As the owner, you can’t have an ego, Strengari says. If your idea of owning a restaurant is walking around in a pretty dress and makeup and asking customers what they think of the food, you’ll be in for a surprise. You have to be willing to do every job. From chopping vegetables to seating customers, you’ll have to fill in from time to time.

Watch your labor costs

A lot of restaurateurs have the urge to hire, hire, hire. While you will probably need to hire some staff to make your restaurant a success, don’t go overboard. Paying employees can be daunting, especially in the first few months when you’re not making a lot of money. It’s not always easy to figure out how many staff to hire the right amount of staff, Macejewski says.

“It’s tough to plan for if you are seasonal or have sporadic business, but you don’t want people on the clock if you don’t have the business,” she says. “You can’t afford it.”

• 6. Secure funding and manage your cash flow

Generate startup capital:  As with every business, make sure you know how much money you need to get your restaurant off the ground.

You’ll need three pools of money. The first pool is for one-time costs like equipment (check out this calculator to help you figure out startup costs). The second pool is to cover the restaurant expenses for at least six months, and the third pool is to cover your personal bills for at least six months. You’ll want to have at least six months of cushion because you’ll probably find that your expenses outpace your revenue for at least that long.

Plan to lose money for the first six months:  Restaurants aren’t profitable overnight. It takes time to market your new place, attract a crowd, and get people to come back for more. Some say you shouldn’t plan on making money for at least the first six months.

Plan for bumps in the road:  It’s easy to go over budget when you’re first starting out, so make sure that you have some additional money to cover the unexpected. If you’re not sure about how to do this, consider a business line of credit.

When you do hit a bump, evaluate the numbers and your processes, Lambrine Macejewski says. For example, when she first opened her restaurant, she realized her food costs were too high. She called her vendors and switched from a five-day delivery schedule to a two-day schedule. She saved the money she needed by investigating the problem and looking for a solution.

Watch your food cost:  You’re in the business of making food, but if your food costs are out of line you’ll end up losing money. Make sure you keep track of your inventory, prepare food well, avoid waste, and keep prices competitive.

• 7. Keep marketing

You can’t depend on repeat customers, so you’ll need to keep your marketing efforts up to make sure your revenue stream doesn’t thin out. Establish a strong social media presence, try an ad in your local paper, participate in the local fair, or host a small non-profit get together at your restaurant to keep marketing your business.

Share your restaurant startup advice with us!

For the right owner, there’s nothing better than running a restaurant. You get to create an atmosphere and cuisine that people will love, but it comes with a lot of hard work.

Reach out to us on Twitter and share what you’ve learned through starting a restaurant, or let us know what else you think it takes. We’d love to hear from you!

Lisa Furgison is a multimedia journalist with a passion for writing. She holds a graduate degree in mass communications and spent eight years as a television reporter before moving into the freelance world, where she focuses mainly on content creation and social media strategies. Furgison has crisscrossed the U.S. as a reporter, but now calls Key West, Florida home. When she's not conducting interviews or typing away on her laptop, she loves to travel.

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Who is this for?

4 key things to do before you begin writing your restaurant business plan.

So, you think you’re ready to dive into the restaurant biz? Hold up. Before you start fantasizing about your grand opening, there’s groundwork to be laid. And I’m not just talking about choosing which trendy aprons your staff will wear. Here are the four non-negotiable steps you need to tackle before you even think about drafting that business plan.

1. Figure Out Your Concept and Brand Identity

What’s your story? And no, “I want to open a restaurant” doesn’t cut it. Are you bringing the sultry tastes of New Orleans to the heart of New York? Or maybe you’re thinking of a vegan joint that even hardcore carnivores can’t resist? That’s your concept. Now, how will you sell it? That’s your brand. It’s not just about what’s on the plate; it’s about the vibe, the ethos, the whole shebang. Your concept and brand identity are what will set you apart from the “just another café” down the street. Got it?

2. Get a Grip on Locations and Logistics

Location, location, location – it’s not just a tired cliché. It’s the make-or-break factor for your restaurant dream. But here’s the kicker: some landlords want to see your business plan before they hand over the keys. It’s a bit of a chicken-and-egg situation, isn’t it? But fear not. This is where your concept shines. It gives landlords a taste of what’s to come, making them more likely to bet on your vision. And logistics? Start thinking about supply chains, kitchen flow, and whether your delivery guy will get stuck in traffic during rush hour. Thrilling, I know.

3. Menu Planning

Ah, the menu – the heart of your restaurant. This is where you get to flex your culinary muscles. But let’s not get carried away with truffle oil just yet. Your menu needs to be a carefully balanced equation of cost, creativity, and logistics. It should scream your brand, cater to your target demographic, and, above all, be feasible. Remember, a great concept with a poorly executed menu is like a smartphone with no battery life – useless.

4. Regulation and Licensing

Dreaming of a chic cocktail lounge to complement your restaurant? You better make sure you can secure that liquor license first. Regulations and licensing are the less glamorous side of the restaurant business, but they’re as crucial as the food you serve. This step is about dotting your i’s and crossing your t’s. Health inspections, food handler certifications, zoning laws – welcome to the bureaucratic maze. Navigate it successfully, and you’re one step closer to pouring those artisanal cocktails.

The Absolute Power of a Killer Restaurant Business Plan

Listen up, future restaurateurs! Why do you need a restaurant business plan that’s more detailed than your grandma’s recipe for lasagna? Simple. It’s the GPS for navigating the wild terrain of the restaurant industry. You’re not just opening a place where people eat; you’re stepping into a battlefield where only the strongest concepts thrive. You think you’ve got what it takes? Then you better have a plan that screams, “Invest in me, I’m going places!”

The Must-Haves of Your Restaurant Business Plan

Crafting this masterpiece involves more than jotting down some numbers and a catchy name. It’s about painting a picture so vivid, investors can taste your dishes just by reading the pages.

Executive Summary

This isn’t your high school book report. It’s the hook that grabs investors by their taste buds. Who are you? What’s your vibe? And why is your place going to be the new hotspot? 

Conceptualizing Your Offering

Are you the oasis for vegan foodies, or the haven for carnivores seeking their next meaty conquest? Define your universe. 

Dive deep into your menu. Why? Because your truffle mac ‘n cheese is going to revolutionize how we think about comfort food, that’s why.  

Location, Location, Location

Explain why your spot is the place to be. Is it the foot traffic, the local vibe, or because it’s an area screaming for a culinary revolution?  

Market Analysis

Who’s coming to eat? What’s the competition? And why’s your restaurant the answer to everyone’s food prayers? 

Strategy & Implementation

How are you going to fill those seats? If “If you build it, they will come” is your only plan, we need to talk. 

Management Dream Team

Who’s running the show? Why are they rock stars? 

Financial Genius

Show me the money – your startup costs, projections, and that magic break-even point. 

Might throw in a curveball or two, like the tech that’ll make your service smoother than a soufflé or the loyalty program that keeps ’em coming back for more. Custom-tailor your plan. This isn’t a one-size-fits-all kind of deal.

Why Sweating the Small Stuff Makes All the Difference

In the cutthroat culinary world, it’s the little things. Your business plan isn’t just a document; it’s your manifesto. It’s what sets you apart in a sea of sameness. Think of it as your restaurant’s DNA – from analyzing your market to breaking down your cash flow. This level of detail doesn’t just impress financiers; it gives you a map through the industry’s maze.

Ready, Set, Pre-Plan!

Think writing a restaurant business plan is your first step? Think again. Before you start dreaming up menu items or picking out tablecloths, there’s something crucial you need to tackle: our Pre-Planning Process . This isn’t just a preliminary step; it’s the foundation on which your entire concept will be built. Want to know more? We’ve laid out every detail on our website. Start Your Journey Here. Alongside the essential tasks to tackle before penning your plan, these resources are invaluable.

The Pre-Planning Process for Restaurant Entrepreneurs

Before the dream becomes reality, there’s the Pre-Planning Process. Think of it as the appetizer to the main course that is your restaurant. This phase is where your vision gets a reality check. Is your brilliant idea in sync with the market? Can it make you money? Let’s chop it up into bite-sized pieces.

Know Your Customer

Who’s sitting at your tables? Getting this right is like nailing the perfect spice blend. Use Pre-Vision Interviews and the Jobs-to-be-Done theory to decode your customers’ cravings. This isn’t just about filling bellies; it’s about fulfilling needs, wants, and dreams on a plate.

Get the full recipe on understanding your customer.

Core Cost Analysis

Next up: the dough. Can your restaurant make financial sense? Break down the costs like a recipe, from ingredients (goods) to chef’s time (labor). It’s all about balancing quality and cost to price your menu right.

Dive into the numbers with our Core Cost Analysis guide.

Business Model Development

Here’s where you sketch out your restaurant’s blueprint using the Business Model Canvas. Mix in customer insights, sprinkle in financial realities, and what do you get? A strategy that’s as solid as your signature dish.

Layer your business model with our development tools.  

Operations in Detail

Operations are the kitchen of your business. It’s where plans meet reality. From picking your team to setting up supplier ties, every choice cooks up the customer experience you’re aiming for.

Whisk through operational planning essentials here.

Startup and Operating Costs

Before the grand opening comes the bill. Understanding the full cost menu—from initial setup to the daily specials—is crucial. It sets up your pricing strategy and opens doors to investors.

Season your financial planning with our Startup and Operating Costs guide.

Now, assuming you’ve got the pre-planning in your rearview, it’s time to talk about step two: actually writing that killer restaurant business plan. This is where your concept starts to take shape, grounded in the gritty realities of the restaurant world and buoyed by your boundless passion. 

Get Up to Speed FAST!

Unsure where to start.

Actually Writing a Perfect Restaurant Business Plan

Okay, so you’re really, really, truly ready to write your restaurant business plan? Our resources guide you through, soup to nuts. Visit our Plan & Pitch section and start cooking up your success story, which will take you through the following steps: 

Understanding Audiences

Knowing who will be reading your business plan is half the battle. Customize your pitch to echo in the halls of banks, impress investors, comply with regulators, charm partners, or convince landlords. Your message needs to land with impact.

Get the right structure for your audience.

Model-Based Planning®

Our Model-Based Planning® slices through the noise, offering a strategic blueprint for any restaurant concept, from a cozy café to a bustling food truck. Embrace a bird’s-eye view of your business terrain, sharpening your concept and competitive edge.

Explore Model-Based Planning®.

Narrative Development

A story well told is a story that sells. Weave your restaurant’s vision, strategy, and USP into a narrative that captivates and convinces, laying a solid foundation for your pitch.

Craft your story.

Dish out a thorough market analysis to understand your competition, the industry trends, and the economic landscape. This is your compass for navigating towards success in the restaurant sector.

Dive into market analysis.

Organizational Structure

The backbone of any successful restaurant is its team. Chart out your organizational structure and pen down compelling team biographies that demonstrate capability and credibility to potential backers.

Build your team structure.

Financial Projections

Serving up a detailed financial forecast is essential. It’s your map for budgeting, setting prices, and securing the dough (funding, that is).

Forecast your finances.

Turn your concept into a full-blown plan with actionable strategies for marketing, sales, and customer delight. A well-seasoned marketing plan ensures you hit your targets and satisfy customer appetites.

Strategize and execute.

Pitch Deck & Finances

An irresistible pitch deck and savvy financial management are your secret ingredients for attracting early-stage investment and securing a smooth launch.

Perfect your investor pitch.

Unlock the Power of Expert Business Planning

Supercharge your restaurant's success.

Our Expert Business Planning Bundle, curated specifically for restaurant entrepreneurs, is a comprehensive toolkit with everything you need to create a winning business plan.

This bundle includes the Model-Based Planning® Worksheet, a professional financial projection Excel model, and expert guides on leveraging these tools and AI to develop your plan. Don’t miss this opportunity to invest in your restaurant’s future and watch your vision come to life.

Gain an Unfair Advantage

The tools you need.

This bundle was created by the top business planning team in the U.S., responsible for the most successful business plan writing company in history. By leveraging these expert resources and insider secrets specific to restaurant planning, you’ll be able to create a standout business plan that sets you apart from the competition.

With this bundle, you will:

• Access the insider knowledge and proven strategies used by the most successful business planning company in the U.S.
• Leverage expert resources tailored specifically to the restaurant industry, giving you a competitive edge
• Streamline your planning process with the Model-Based Planning® Worksheet for Restaurants and Cafes
• Create professional financial projections using the included Excel model
• Utilize the curated restaurant-focused business plan template to structure and organize your plan effectively
• Follow expert guides on leveraging these tools and AI to develop a compelling and comprehensive business plan
• Dramatically increase your chances of securing the loans, investments, or approvals you need to bring your restaurant vision to life

Use this bundle as your primary toolkit for crafting a restaurant business plan that unlocks the funding and support you need.

When crafting a business plan for your restaurant or cafe, you need more than just a generic template. You need a toolkit carefully curated by industry experts who have spent their careers helping restaurants succeed. That’s exactly what our Expert Business Planning Bundle offers, but why invest in this bundle when there are other options available?

The answer is simple: no other resource can match the depth, breadth, and practical wisdom contained in our Expert Business Planning Bundle. Our team has distilled their thousands of hours of experience working with successful restaurants into a comprehensive toolkit that will save you time, money, and the frustration of making costly mistakes.

With our targeted, practical knowledge tailored specifically to the restaurant industry, you’ll be able to write a business plan that’s smarter than what the best consultants could produce, and that’s exactly customized to your unique needs and goals. Whether you’re seeking funding, approvals, or simply want to set your restaurant up for long-term success, our Expert Business Planning Bundle is the ultimate resource to help you achieve your vision.

Frequently Asked Questions

• How do I tailor my business plan to attract potential investors specifically?

Tailoring your business plan to appeal to potential investors involves highlighting the aspects of your business that demonstrate profitability, scalability, and a clear competitive edge. Personal information about the management team’s experience

• What information should I include in the business description section of my restaurant business plan?

The business description section should provide a comprehensive overview of your restaurant, including the concept, target market, menu offerings, and unique selling points. It should also detail the restaurant’s location, design, and how it fits into the broader market landscape. Highlight any differentiators that set your restaurant apart from competitors and outline your vision for the restaurant’s impact on the local dining scene.

• How much personal information should I share about my management team in the business plan?

Your business plan should include succinct biographies of key management team members, focusing on their relevant experience, skills, and contributions to the success of the restaurant. This section should illustrate why each member is uniquely qualified to execute the business plan, without delving into excessive personal detail. 

• Should I highlight my past success stories in the business plan?

Yes, including past a success story or two in your business plan can significantly enhance your credibility and appeal to banks, potential investors, or even landlords. Highlight how these experiences have equipped you with the skills and insights necessary to make your current restaurant venture a success. 

• What are the key elements of a company overview in a restaurant business plan?

The company overview section should summarize the essence of your restaurant, including its name, location, cuisine type, and the dining experience it offers. It should outline your mission statement, core values, and the long-term objectives of your business. 

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How to Write a Restaurant Business Plan [with a Template & Instructions]

Feb 3, 2022

A restaurant business plan can help you put the “business” in your restaurant. After all, restaurants aren’t just about offering hospitality , serving your favorite recipes or creating a cozy ambiance. They need to generate revenue to support you and your employees. With a business plan serving as your blueprint, you can stay focused on meeting your goals and running a lasting enterprise.

In this guide to creating and using your restaurant business plan, you’ll learn:

What is a restaurant business plan?

A restaurant business plan is a document that explains the who, what, where, when, why and how of your restaurant. It serves as a source of truth for your vision for the business, and can help you stay accountable to your goals and stakeholders. A typical business plan includes sections on your restaurant’s concept and team, the competition, your marketing plan, financial projections, an executive summary and more. 

Why is it important to have a restaurant business plan?

Writing a business plan is a critical step on the road to becoming a restaurant owner . This document helps keep everyone involved in starting and managing the business aligned on goals and means. A business plan gives you direction and holds you accountable as you make decisions.

It’s also a helpful tool to share with potential investors. A business plan shows that you’re serious about the business, have done your research on the competition and target market and understand the risks and key financial and regulatory aspects of running a business.

How to write a restaurant business plan

Here’s a step-by-step breakdown of exactly what you should include in the business plan for your restaurant.

Executive summary

The executive summary serves as both an introduction to the business plan and a summary of everything else found in the document. Write it as a high-level overview of your plan, and write it last so you can pull from other sections.

Business introduction

Start with the basics of your business, including the restaurant’s name, its mission and values, your concept and a sample menu .

If you need help conjuring a business mission and values, consider your restaurant’s purpose. Why does it exist? What does your business stand for?

When describing the concept, you can be straightforward (e.g., a fast-casual Vietnamese restaurant), but you can also add color by including your inspiration for the business. For example, you could share that you want your restaurant to be the Chipotle of Vietnamese food to help make the cuisine more accessible and widespread. 

Include a sample menu that you and potential investors can reference as you finalize the dishes you’ll serve.

Explain who will be in charge of running your restaurant or bar . Will it be you, or will you hire a CEO or general manager ?

Describe which roles you will need to hire for and when you plan on doing that. Include an organizational chart for future reference. And, since the restaurant industry is notorious for high employee turnover , it’s important to explain what you plan to do to retain hospitality staff .

List any kinds of external consultants you plan to engage, like an accountant or marketing agency.

The financial analysis section of your restaurant business plan is one of its most important. Writing one is a useful exercise that helps you plan and understand where the funds to start your business are coming from, and how you will spend that money and your revenue.

Include insights about your funding sources . Where will the money to support your startup costs – and keep it running until it’s profitable – come from? Personal savings, friends and family, investors? How much money will you need to start the business?

Additionally, work out your operational budget . List how much you plan to spend on payroll, technology, furniture and decor, equipment, inventory and marketing. 

Next, include details about your business model and revenue streams . Most restaurants will start with on-premises dining, then may add additional revenue streams via online ordering , catering and selling merchandise.

Finally, include financial projections . How long do you anticipate it will take to become profitable? How much revenue do you think you’ll make in your first year of business?

In this section, explain where you will go for legal counsel and which licenses and permits you will obtain.

Create a plan for keeping up with labor regulations, such as fair labor practices , overtime and wage requirements. 

Designate a member of your team, like the general manager, to keep licenses up to date and ensure you’re complying with local regulations and are ready for health inspections.

Marketing analysis & plan

This part of your restaurant business plan should include the following sections:

Technology plan

Tech is a critical part of running an efficient, modern restaurant. Decide which restaurant technology you’ll need to run your business. As you research tech vendors, make sure the solutions you choose can grow with your restaurant.

Consider the following types of tools:

Create a timeline to mark milestones for the days leading up to your restaurant’s opening, and what you hope to accomplish in the years after opening day. Take inspiration for milestones from these examples:

Restaurant business plan template

Take a screenshot, copy and paste or print this restaurant business plan sample to kickstart the writing process.

(Summarize the rest of your restaurant business plan)

Proposed restaurant name: 

Mission and values:

Leadership team:

Hiring plan:

External consultants:

How will you fund the business?

How much money do you need to start the business?

What will your operational expenses be?

When will the business start making a profit?

Which licenses and permits will you need to obtain?

Market analysis & marketing plan

Where will the restaurant be located?

Competitive analysis:

SWOT analysis:

Price analysis:

Marketing plan:

Which tools and vendors will you be using?

CRM: SevenRooms

Reservations: SevenRooms

Online ordering: SevenRooms

Inventory management:

Accounting:

Leading up to opening day

Opening day:

6 months from opening:

1 year from opening:

5 years from opening:

Need more inspiration? Check out these restaurant business plan samples for more ideas.

Stay focused with a restaurant business plan

Creating a restaurant business plan can help you stay focused on your goals and prove to external stakeholders and potential investors that you’re serious about the business. While the specifics of your restaurant will change between its grand opening and several years in operation, a business plan can keep you accountable to your original goals and vision. Use our restaurant business plan template to start jotting down your ideas.

SevenRooms can help you achieve your business goals by equipping you with the technology you need to run a successful restaurant. Request a demo today.

FAQs about restaurant business plans

​​1. what is a business plan for a restaurant.

A restaurant business plan is the blueprint that outlines your vision, and explains in detail how the new business will take shape and operate once its doors are open.

2. Is it profitable to open a restaurant?

Restaurants are profitable, but have lower profit margins compared to other industries, which should be factored into your restaurant business plan.

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How to start a restaurant business

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Whether you’re an experienced chef that’s always dreamt of a place to call your own, or a savvy entrepreneur that’s spotted a gap in the market, opening and running a restaurant is a dream for many across the UK.

Still, it’s been a rough few years for the sector . Between rising business energy bills, increasing ingredient prices , supply chain issues, and a shortage of readily available staff post-Brexit, opening a restaurant is a venture that should be approached cautiously by would-be restaurateurs.

Thankfully, things are looking eggs sunny-side up. The food service industry workforce was projected to grow by 500,000 jobs by the end of 2023. Still, a lot of careful planning and hard work is required to reach the dizzy heights of success stories like Flat Iron and Mowgli.

Thankfully our guide is full of expert insight from seasoned restaurateurs and will give you plenty of inside knowledge on market research, costs, budgeting, regulations, and branding.  Read on to find out everything you need to cook up an enticing restaurant business plan .

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

This article will cover:

How to open a restaurant: step-by-step, 1. restaurant startup costs: how much is it to open a restaurant, 2. how to budget when starting a restaurant, 3. how to manage restaurant payments, 4. writing a restaurant business plan, 5. restaurant market research, 6. buying/renting restaurant premises, 7. branding and designing your restaurant, 8. stocking your restaurant: supplies and catering equipment, 9. restaurant recruitment: how to hire top talent, final thoughts.

There’s a lot of planning that needs to go into launching a successful restaurant. Thankfully, one area which needn’t cause undue stress is creating a website to promote your business. Thanks to modern templates like the one below , you can create one of your own in under an hour.

At Startups.co.uk, we test and rate website builder tools, and we’ve identified Wix as one of the best you can choose for creating a restaurant site. Wix even has a selection of custom website templates designed specifically for restaurants – you simply drop your own restaurant’s information, wording, menu and preferred imagery into your chosen template. It can even create an online booking system for you . Better still, it’s completely free to try  for yourself.

We’ll cover these in more detail below, but first here’s an at-a-glance guide to some of the steps you’ll take when you start a restaurant.

• How much is it to open a restaurant?
• How to budget when starting a restaurant
• How to manage restaurant payments
• Write a restaurant business plan
• Restaurant market research
• Buying/renting restaurant premises
• Branding and designing your restaurant
• Stock your restaurant
• How to hire top talent

So, let’s really dive into each step, starting with costs:

It’s almost impossible to give a definitive answer on restaurant startup costs – you could spend a few thousand pounds getting a popup going in an inexpensive area or a few million creating a high-end dining destination in central London. But, as a very rough guide, expect to spend at least £100,000–£200,000 getting a decent-sized restaurant off the ground .

Here are some of the bigger costs you’ll need to consider:

• Premises – Whether you’re renting or buying, securing your restaurant premises will always be a major expense.
• Staffing – You’ll almost certainly need to hire at least a few staff, and their wages should be a key part of your costs plan.
• Supplies and equipment – Depending on how ambitious and experimental you want to be, you can spend a lot of money on catering equipment and ingredients. If you do, make sure you mark up your dishes accordingly.
• Energy bills – Restaurants need a lot of power, so it’s crucial to shop around and find the best deal.

To make money running a restaurant, it’s absolutely essential to budget effectively.

You need to work out your costs (like the ones discussed above) and give a reasonable estimate of what your sales might be. Your total sales minus your total costs is your profit (or loss), the most important number for any small business.

It can be hard to keep track of where your money’s going when you’re running your restaurant, so it’s a great idea to invest in some good accounting software once you’re up and running.

Top accounting software like QuickBooks costs around £20 a month and not only automatically track the money coming in and out of your business account, but also let you work out when your most profitable periods are and easily handle tax time.

To learn more, take a look at our rundown of the best accounting software for small businesses .

When you’re starting a restaurant, getting a good POS system is essential.

You’ll need it to take payments and, while you might be able to get away with an iPad-driven POS system like Zettle to start with, advanced POS systems offer so much more than payments.

Lightspeed POS is our pick as the best restaurant POS system, and gives a good idea of the extra features you can expect from a high-end restaurant POS such as:

• A customisable menu that lets you easily add or remove items to account for seasonality or food trends, and also add photos and descriptions to help your servers
• The ability to take orders from anywhere and send them directly to the kitchen, making the whole process much more efficient
• Inventory tools that make it easy to stay on top of your supply levels

Tell us what you're looking for and compare leading POS providers

For more insight, check out our guide to the best POS systems for restaurants .

For the purposes of this guideline, we’re going to use a fictional establishment – let’s call it The Goodfare Restaurant* – to show you exactly how a restaurant business plan should work in practice.

You can find a more comprehensive breakdown of what to include in our general business plan template .

* Any resemblance to a real restaurant is entirely coincidental!

Executive summary

This is a brief snapshot of the key information the reader needs to know about The Goodfare Restaurant.

• The restaurant – The Goodfare Restaurant is a 100-seat family eatery in North London, serving moderately-priced comfort food classics
• Your mission statement – The Goodfare Restaurant exists to bring hearty, reasonably-priced grub to the masses
• Objective(s) – to be the most popular moderately-priced eatery in North London
• Values – the customer is almost always right

The company

This section should go into detail about the management team, the legal structure of the business, and operations.

• Founders/management team – Founders Stelmo and Philip Blimp are brothers with a combined 25 years’ experience working in some of the UK’s most successful restaurants
• Ownership structure – The Goodfare Restaurant will be 100% owned by the Blimp brothers (unless equity is given away as part of an investment deal)
• Legal and insurance – The restaurant will abide by all UK health and safety laws, as well as food hygiene legislation etc.
• Startup costs – We estimate initial startup costs for The Goodfare Restaurant will total £150,000, self-funded by the Blimps
• Property – The 2,000 square foot property has space for 100 covers. It comes fitted with a functioning kitchen and bathrooms, but will require some minor renovation
• Location – The restaurant is located on the high street in an area of high footfall
• Opening hours – Monday to Friday – 11am to 11pm
• Responsibilities – Stelmo will be responsible for stock management and finances, while Philip will be in charge of managing staff and payroll
• Suppliers – Thanks to their years of experience in the industry, the Blimps have excellent relationships with a number of quality local suppliers

Market analysis

This section is where you prove the viability of your proposition with thorough market research.

• The industry – over the last two years, London’s restaurant industry has seen the highest level of closures in decades, as well as very high staff turnover. Chains and high-end establishments have been hit particularly hard, with consumers hankering for more authentic independents like The Goodfare Restaurant
• The target market – The local population of around 260,000 people is comprised of young professionals and families, with a median annual income of £40,000
• Competitors – There are three direct competitors within a five-mile radius, including:

The Goodfare Restaurant will position itself as the number one mid-range family restaurant in North London.

We will incorporate traditional and digital marketing elements in our strategy. Primarily, we will:

• Develop relationships with local businesses by offering lunchtime deals
• Implement a loyalty scheme
• Encourage repeat visits through our email database

Below is a rough breakdown of the expected costs of starting and running The Goodfare Restaurant, and the revenue generated assuming an average table turnover rate (i.e. the number of daily sittings at each table) of 2.5.

A good rule of thumb is that you want to be turning over your tables every 45 to 90 minutes during busy periods.

Here are some other restaurant metrics you could track:

Startup costs – The Blimp brothers will provide the estimated £150,000 startup costs

Important assumptions – For the purposes of this business plan, we will assume the following:

• Average customer spend of £20
• Average 250 covers served per day
• Average meal cost of £3.50
• 10 waiting and bar staff on average salary of £18,000*
• 10 kitchen staff on average annual salary of £24,000
• Two managers and one head chef on average annual salary of £30,000
• Two cleaners on average salary of £17,000
• Sales forecast – Based on assumed daily covers and average spend, we estimate an annual revenue of £1,825,000 in the first year

Staff salary cost: £544,000

Average variable meal cost: £319,375

Annual rent: £365,000

Other running and maintenance costs: £91,250**

Total annual expenses for year one = £1,319,625

• Startup costs = £1,469,625

Estimated year one profit of: £505,375

*Salaries based on data from Glassdoor

**The average restaurant budgets 1-3% of revenue for maintenance, according to restaurantequipmentrepair.org  

This is a very basic (and perhaps generous) breakdown of the estimated revenue and running costs of a restaurant in London.

You may have to provide a more granular account of your monthly expenditure and revenue sources in order to convince investors that your financials are sound.

Your market research should focus on your local area, but it’s also worth noting the trends likely to impact the restaurant industry over the next few years, including:

Growing popularity of vegetarianism, veganism, and flexitarianism

Driven by factors like personal beliefs and a developing awareness of the impact of food production on climate change, lots of people are wanting to either eat less meat or no meat.

Indeed, a Statista survey in 2021 of 2,000 UK consumers found that 7% of respondents followed a vegetarian diet and a further 3% followed a vegan diet.

Increasing adoption of tech

Research company EHL Insights recently identified several digital tools whose use is rapidly growing in UK restaurants , including EPOS systems, digital menu boards for kitchen staff, online table reservation systems, QR code menus , online ordering, and inventory management software.

Not all of these will suit your business, but it’s worth considering which could really make it easier to run your restaurant.

Transparency, sustainability, and trust

Consumers are becoming much more concerned about the social and environmental impact of the restaurants they eat at, spurring developments like the iconic Michelin guide introducing a Michelin Green Star to highlight restaurants leading the way in terms of environmental sustainability.

Finding the right restaurant premises is a hugely important part of starting a restaurant. There’s a lot to consider, from location and transport links to lease lengths and business rates.

To learn more, we spoke to Thibault Bouquet de Jolinière and Youri Michel – two of the co-founders of The Initiative Group , a French team that has launched and managed an eclectic range of hospitality outlets all over the world.

In short, they know their stuff.

Expert Insight – Thibault Bouquet de Jolinière and Youri Michel, The Initiative Group

Bouquet de Jolinière and Michel had the following advice for budding restaurateurs:

Location is king

“Location is always the most important factor in choosing your premises. You should be aware of both good and bad competition around you. Not having much competition will increase the time needed to become profitable, whereas if there are already a few successful restaurants nearby, then people will already be travelling to and from the area to eat and you may be able to benefit from this.”

Link your location and concept

“Don’t bring a concept to a location – instead, build a concept around the location you have chosen. You might be able to adapt your original concept, but you should always do proper market research to find out what else is in the area, and how it will affect your original plans.”

Things to ask

“We would always ask for both the rent and business rates, and we would also request to see the current licence on the property. We would recommend never buying an existing company, as often there is the risk you will end up finding hidden debts. And by taking over an existing company, you will also be taking over the staff – a cost and a risk you don’t want to inherit.”

Buying restaurant premises

Although the easiest way to obtain premises for your restaurant is to take over a pre-existing establishment (and you might even find one with a fully kitted-out kitchen and bar), this can be a major commitment.

Think about whether the size and location of the establishment really suits your plans and level of experience, and try to find out how the previous business fared and the reasons for the sale.

Bouquet de Jolinière and Michel advise that you should ask how long the lease on the property is for, and request the previous restaurant’s profit and loss statement.

If you do want to go down this route, BusinessForSale.com has a dedicated section for restaurants, which lists the asking price and sometimes the current turnover and net profit (otherwise you’ll have to request these).

Rightmove also lists restaurants for sale , where you can just buy the premises or commercial unit.

It may be the most important part, but having great food is only one aspect of running a successful restaurant.

You’ll also have to think about branding and design – your name, logo, menu and interior should all clearly convey your concept, and a striking website should show it all off.

Here are some pointers:

Restaurant name and logo

The name and logo of your restaurant should:

• Leave a lasting impression
• Be easy to pronounce and/or spell
• Reflect your concept

Generally speaking, less is more. Aim for a single word or two that sums up your concept and create a logo that’s simple and doesn’t distract with too many colours.

Your market research should inform this process. Look closely at what your competitors are doing and think about how effectively their names and logos convey their concepts.

Finally, avoid well-known existing names – even if your family name is McDonald, calling your restaurant McDonald’s is only going to confuse people and maybe even get you sued.

Creating a restaurant menu

It’s easy to underestimate the importance of menu design, but it’s one of the main things that potential customers will base their dining decisions on.

A good menu should be descriptive, easy to read, and uncluttered, and complement your theme.

You should also break your dishes down into clearly identified sections, highlight special or popular dishes, eloquently and accurately explain your dishes, and include allergy and dietary information.

You should avoid clip art (use free image databases like Shutterstock instead), too much technical jargon your customers won’t understand, too many disclaimers, difficult-to-read “artistic” fonts, and overly long dish descriptions. You should also avoid laminating your menu.

Restaurant interiors

To get some expert guidance on restaurant design and layout, we spoke to Lauren Woodhouse from West Yorkshire-based LW Interior Design, who specialises in restaurant, bar, and hotel interiors.

Expert Insight – Lauren Woodhouse, LW Interior Design

Woodhouse shared the following golden rules for restaurant interiors:

The bar or feature kitchen should be the focal point

“The bar should always be the focal point of the room. It should be well lit and attractive, and you should be able to see it from all corners of the room. However, if you plan to have a feature kitchen where your diners can see the food being prepared, then this should be the focal point and the chefs should take centre stage.”

Hide the kitchen and toilets as much as you can

“Unless you have a feature kitchen, the kitchen should be situated at the back or at the side of the room. Similarly, the toilets should be situated towards the back of the restaurant, or downstairs and, where possible, have a good lobby/entrance vestibule so that the toilet door doesn’t open onto the restaurant and diners can’t see into the toilets when the door is open.

“Additionally, any stairs in a restaurant should be towards one of the outer walls, so that if anyone is going up/down, they don’t have to walk through other diners to get to them.”

The senses are key for interiors

“Ambience plays a key part in a customer’s feelings towards a restaurant. It’s good to play on the five main senses: sight, hearing, touch, taste, and smell all play a huge part in helping someone to decide whether they love or hate your restaurant.”

And she picks out some key trends.

“Deep, luxurious velvets are huge at the moment – they look and feel stunning, and can take a restaurant from fast food to fine dining easily! Nature is a huge trend as well. Greenery, whether faux or real, can create a sense of the outside within, and can be used to section off areas of the restaurant without a wall. Rattan style furniture and earthy tones are used to similar effect, and can make diners feel more relaxed.”

Your branding should also be a key part of your restaurant marketing campaign. Head to our restaurant marketing guide to learn how to launch with a bang and keep customers coming back again and again.

And, if you’re keen to make a splash with your restaurant Instagram page, then make sure you take a look at our how to use Instagram for business guide for some top tips on creating impactful Insta posts.

Restaurant website design

One of Wix’s restaurant website templates

Once you’ve got a great name, striking logo, expertly crafted menu, and atmospheric interior, then you need a great website to show it all off.

Thankfully, setting this up is much easier than it used to be. Top web builders like Wix have loads of restaurant-specific templates that can be easily customised to reflect your design concept.

Or, just use Wix’s ADI (Artificial Design Intelligence) to create a restaurant website in minutes by making a few key design choices.

To learn more, head to our dedicated restaurant website design guide.

This is not exactly the glamorous side of the restaurant business, but you can’t have a restaurant if your chefs have nothing to cook and nothing to cook with.

That brings us to supplies and equipment.

Supplies and ingredients

When you put together your menu, you should have at least half an eye on your ingredient costs. If you can, try to avoid buying too many specialty ingredients that are only used in one dish and try to base much of your menu around common, affordable ingredients.

And remember, using an elite restaurant POS system like Lightspeed can make it so much easier to stay on top of your ingredient inventory – its counts update automatically as supplies come in and dishes are sold, leaving you one less thing to worry about.

Choosing a supplier

It’s really important to choose your food supplier carefully. You’re not just running the risk of late deliveries – unhygienic packing and transportation of perishable food products could pose a real health risk to you and your customers.

With that in mind, make sure to look into the following when considering suppliers:

• Are they registered with the local authority?
• Do they have any certification or quality assurance?
• Are they recommended by other local restaurants?
• Do they store, transport and pack their products in a hygienic way?

It’s also a good idea to carry out your own spot checks on temperature and quality to make sure produce is suitable.

You are legally required to keep a record of all food products you’ve bought, where you bought them from, how much you bought, and the date of purchase. Keep this information safe in case it ever needs to be presented to an inspector or enforcement officer.

There’s no two ways about it, restaurants need a lot of equipment.

The following list should give you a good idea of the things you’ll need to invest in:

Cleaning and hygiene

• Cleaning equipment (eco-friendly if possible)
• Toilet hygiene
• Pest control
• Safety signs
• Table linen
• Service trays

Consumables

• Disposables (paper napkins, paper straws etc.)
• Food labels and wrapping

Clothing and uniform

• Chef uniform
• Staff uniform

Kitchen appliances

• Deep fat fryer
• Stainless steel tables
• Dishwashers and glasswashers

Catering equipment

• Chopping boards
• Food processor
• Pasta maker

Of course, not every restaurant will need all these things, and the dishes you serve are always going to impact the equipment that you need.

Finally, you really should carefully consider how you’ll manage the considerable energy costs generated by restaurants. Shopping around is crucial and our guide to the best small business electricity rates and suppliers for 2024  is full of top tips.

Hiring the right people is crucial to the success of your business, whether that’s front of house staff like greeters and waiters, or back of house personnel like chefs.

However, as our how to recruit in a hiring crisis piece discussed, this is not an easy time to hire people, with Brexit and “the great resignation” meaning there’s a shortage of high-calibre candidates.

A lot of the advice in that guide also applies to restaurants: ensuring that your establishment has a positive workplace culture that rewards its employees, making the story of your business a key part of your pitch, devoting enough time to hiring, and offering some form of flexible working.

When it comes to recruitment, The Initiative Group’s Thibault Bouquet de Jolinière and Youri Michel advise hiring a mix of experienced professionals that can mentor and bring consistency and younger employees that are cheaper and eager to learn.

It’s also important to offer incentives to keep your staff motivated, as well as career development paths that encourage them to stay with your restaurant for longer (such as a pay increase after a set period of time).

As you can see, there’s a lot that goes into running a successful restaurant – you’ll need to tackle everything from recruitment to interior design.

But, if you’ve got the skills and a real passion for food, then this is a business that you can really stamp your personality on. Food may be the starting point, but successful restaurants are about identity and atmosphere combining to create memorable dining experiences.

While we’ve covered a lot in this guide, it really is just a starting point. There are loads of resources out there giving detailed advice on all the aspects of running a successful restaurant, so make sure you take advantage of them.

As long as you focus on creating a positive atmosphere for your staff and your customers, then you shouldn’t go too far wrong.

Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.

• How much does it cost to open a restaurant? As a very rough guide, expect to spend at least £100,000–£200,000 getting a decent-sized restaurant off the ground.
• How do I start a restaurant in the UK? This comprehensive guide includes expert insight on all the key parts of starting a restaurant business – covering everything from writing a restaurant business plan and choosing a premises to deciding on an interior style and hiring staff.
• How much does a food license cost UK? According to Gov.uk, it's free to register, and your registration cannot be refused. You should register at least 28 days before opening.
• Do I need permission to open a restaurant? No, you do not need permission to open a restaurant in the UK, however you do need to ensure you have a food licence.

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Recipe for navigating the restaurant business opening

Fred Neuville

The restaurant business is a juggling act: exciting, social, you learn new things constantly, and you get instant gratification daily. Proper planning in the pre-opening phase can ensure long-term success.

Use these guidelines to create an outline, as seen in this restaurant opening checklist:  Pre-Opening-Checklist.

Research: conduct thorough market research

You can get information from the D.O.T, Land and Planning Commission, the U.S. Census Bureau, Water, Electric and Gas Companies, Small Business Bureau, and your local governing body.

First research on the internet, then call each of them or what I did was research and come up with a list of questions like mentioned above, then I visited each local entity to have face time and get answers. The response was amazing compared to a phone call.

Who is your target audience?

What ages do you want to target? What is their professional background? Are they retired? This determines the portion size of your food, because older folks eat less and professionals along with retired people eat out more.

What is the traffic pattern?

Sit on the spot where you plan to open your business for a few hours (a few in the morning, afternoon, and night), count the cars and the people walking by. What is the pattern? Is it busy enough to support your venture?

Who is your competition?

Eat and visit other restaurants in the area you plan to open. Are there any like yours or are you providing a cuisine that is unique to your area? An example: If there are four Hispanic restaurants in the area, then don’t open a Hispanic restaurant. Change your business plan or go to another area which doesn’t have another Hispanic restaurant. You want to pick an area which is underserved and unique so that you create a destination. What is the median income in the area? Understand the income in a 1-mile radius and 5-mile radius, etc. You need to know this to set your price point and the more income means that your customers will dine with you more often).

Financial planning: ensure capital for rent, utilities, payroll, food, and beverage purchases

Many restaurants fail within the first year because they don’t follow a budget and a business plan. If you have a business plan and budget and review with management staff weekly, then your chances of success are greater.

Sample opening budget for restaurant

To estimate your capital needs you will need to go to your landlord (rent), utility companies (avg. cost for the type of business you are opening in your area), come up with a pay scale and find a payroll company to give you an estimated base line payroll and cost out your recipes and cocktails.

For a guideline, check out this sample opening budget for a restaurant: Opening-Budget-Example.

There are a few ways to secure proper capital for your restaurant

• Take an equipment loan out with your bank. (I bought equipment at auctions and then cost it brand new to get the highest loan I could get). The reason is the bank will only loan you a portion of the value of your equipment.
• Take a second mortgage out on your house or other property. (I did this through a Home Equity loan)
• Get an investor or a group of them and sell shares. (I did not want to do this because you are beholding to someone else) However I do know quite a few Restaurateurs that have used this method and have been very successful.
• Go through the S.B.A. (I went through the S.B.A. to buy the 2 acres that my restaurant was sitting on). It’s always wise to own the dirt because you hold your own destiny in your hands. And when you go to sell your

restaurant, you are selling the entire property not just the business. We made 4 million in sales and only got $350,000. for the business. The 2 acres that we sold with it allowed my wife and I to retire.

Pre-opening preparation: caution not to rush the opening

Staff training.

Proper training of both Front of the House and Back of the house which should include all staff meetings. Develop written tests for each to educate your staff on who you are and what your mission is.

Recipe standards

Development of standardized recipes for food and beverages. So that no matter who is making them they will be consistent.

Dry runs with staff only

This is important because your staff will get an education on how you desire to operate the business, builds camaraderie, and they learn how to describe the food. Then at least three friends and family events (they only pay for alcohol not food) Don’t serve the whole menu all three nights; break the menu up and serve the items over the course of the three nights. Have comment cards made up so your guests can critique the service and food. This is invaluable information. You can tweak service and recipes through the feedback of your guests.

Point of Sales system

The P.O.S. companies that I have used are Aloha (which is great) and Upserve. When we switched to Upserve from Aloha it was because Upserve had handheld devices for order taking that made service smoother and the customer could pay the bill right at their table. However, make sure your internet signal is strong in all areas of your restaurant inside and out. We had an issue with that but solved it with a booster. Other companies are Toast, Square and Clover. All companies will help train your staff.

Proper marketing

Even with the best culinary offerings won’t guarantee success if your customer base is not aware or your establishment. Effective marketing is essential for attracting and building a loyal customer base.

To build my brand, I volunteered to cook at events for 5 causes near to my heart. One was Darkness to Light (because we were foster parents and adopted 5 children). The second was Lowcountry Food Bank (which supports no child goes hungry), Charleston Wine and Food, Charleston Farmers Market, and the Childrens Museum.

Use a P.R. firm which is costly, but you need to focus on running the business and they will use social media on all platforms to build your online presence and S.E.O. By hiring a P.R. firm, they can guide you by showing you your online analytics (what’s working and should you change anything. You can also skip the P.R. firm if it’s not really in your budget and post everyday on Social Media platforms such as Facebook, Instagram, and Pinterest.

Hosting charity events is a great way of getting involved with your community and letting people know what you are all about. If you neglect marketing and think that word of mouth will be enough, then your restaurant will struggle to gain traction.

Neglecting your customer feedback

Feedback from your guests is invaluable for restaurant owners wanting to improve and evolve. Listen to them and make small changes so they see you are listening. Then they feel like they are invested in your business and become loyal customers.

Final preparation

Opening a restaurant is an extremely challenging endeavor. But if you plan accordingly, you can increase your chances of success by conducting proper market research, budgeting, getting involved with your community, investing in marketing, prioritizing operational efficiency, and listening to your customer base. You are setting your new business up for success day one. And stay in tune with your industry to stay ahead of the trends, by joining groups like local entrepreneur networking groups, the American Culinary Federation, your local Chamber of Commerce. These organizations will help you become a better leader in your industry.

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How to Start a Small Business in 10 Steps

Learn how to start a small business from scratch with expert guidance. Get essential tips and steps for launching your dream journey successfully.

Brett Grossfeld

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Do you have a killer idea that you think would be perfect for launching a small business? If you believe what you see on TikTok, becoming an entrepreneur is just about as easy as posting a 30-second video. But in the real world, launching a small business can be a bit more challenging.

Starting a small business may seem daunting, but if you ask those same business owners if it’s worth the risk — few would trade the opportunity to shape their own destiny.

But where to start? Thankfully, you don’t need to have everything figured out before going out on your own. Successful small business owners are constantly learning from their mistakes — and improving their ideas and dreams along the way.

If you’re ready to take the leap and become a small business owner, keep reading.

Here’s what you’ll learn:

What is a small business, how much does it cost to start a small business, how to start a small business in 10 steps, what do you need to start a small business, start small — but think big.

Small businesses are generally defined by the U.S. Small Business Administration (SBA) as independent operations having fewer than 200 employees. And the majority of small businesses in the United States have fewer than five employees, according to the U.S. Census Bureau . 

But the number — or lack — of employees doesn’t necessarily define a “small business.” A business’s size can also be determined by the number of sales, the range of individual business locations, and other factors.

Along with size requirements, the SBA considers a company to be small if it’s:

• Independently owned and operated
• Not dominant in its field
• Physically located and operated in the U.S. (or a U.S. territory)

If your company meets the SBA’s definition of a small business, many government programs offer resources and local assistance for you to turn your dreams into reality.

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If you’re skilled in a certain trade — say, bookkeeping — you can launch a business with almost no money . But if your idea needs to be fleshed out and developed by researchers, scientists, and engineers, your startup costs can run into the hundreds of thousands of dollars and beyond. But most startup costs fall somewhere in the middle. 

Factors that influence cost

A sole proprietor working from home is going to have very different startup costs than a Silicon Valley startup flush with venture capital funds. But it doesn’t matter if you have $1,000 or $1 million to launch your small business — you’ll need to have a budget.

Are you moving the clutter out of your garage to make room for a desk? Or are you going to hire an architect to remodel a warehouse space in a trendy neighborhood? Obviously, both businesses are going to have wildly different expenses.

Think about your budget and what you can afford to get started. And it’s good to assume that unexpected expenses will pop up along the way — especially in your first year of business.

What kinds of costs to expect

The SBA has a worksheet that will help you calculate typical expenses for a small business, including one-time expenses such as:

• Rent : This includes security deposit, first month’s rent and utilities. If you’re working from home, you can deduct a percentage of your rent or mortgage on your taxes .
• Improvement costs: Anything that you might spend on your physical place of business to make it suitable for work.
• Inventory : If you’re selling a product, you’ll need goods to keep up with customer demand.
• Employees : This includes payroll, payroll taxes, and health insurance.
• Professional services: Accountants, lawyers, and consultants will all need to be paid
• Supplies : Think office supplies, such as paper and pencils, and operating supplies, like computers and printers.
• Marketing: Business cards, stationery, flyers, and advertising all fall under this category.
• Miscellaneous : This includes licenses, permits, legal fees, signage, technology, and accounting software. Everything else — liability insurance, repairs, maintenance, and dues.

The most difficult part of starting a small business is committing to your vision. It’s easier if you break down the process into small, achievable goals. Here are 10 steps that will get you on your way:

1. Do your research

If you don’t do basic market research before you launch your business, you may be down for the count before you even get started. Ask neighbors, friends, and even your barista if they would be interested in your product or service — and ask how much they’d be willing to pay for it. 

Conduct competitor research, local and global searches, and even offer surveys to consumers to see what the need versus want ratio is. 

2. Write a business plan

A business plan is your roadmap; it helps guide you as you start and grow your company. If you need capital to get started, most investors will want to review a business plan before they commit to any financing. 

To organize your ideas, download and fill out a business plan template . A well-written business plan provides clarity, confirms the math, and helps you establish goals so your business has the best chance of success.

3. Choose a business name

Finding the perfect brand name is a vital step in launching a new business. But hiring a professional naming company doesn’t come cheap — it can cost as much as $100,000 , according to Fast Company. 

If that’s outside your budget, there are countless AI-powered business name generators available online, and Fiverr has entrepreneurs who will help brainstorm business names for three figures or less.

4. Decide on your location

Take a look at the taxes, zoning laws, and regulations in your location. You may find that operating your business in a different location could offer financial advantages. Review the fees, costs, and tax benefits of each state to see which location makes the most sense for your business . A strategic move may put you ahead of the game before you even open the doors.

5. Get your finances in order

Startup costs discourage many would-be entrepreneurs, but the reality is that many successful businesses got started with little more than a vision, discipline, and hard work. However, if you really need cash for that newly opened business bank account, here are four ways of getting that money:

• Self-funding: If you have the means, you may use your own earnings to kickstart your business or see out financial counsel to work it into your budget.
• Outside investors: For a stake in your company, relatives or venture capitalists may be willing to invest in your business.
• Small business loans: If you want to keep full ownership of your business, a small business loan may be the way to go.
• Crowdfunding: If you’re feeling creative and confident, try sites such as Kickstarter or GoFundMe to generate capital.

6. Take care of the legal stuff

Register your business in the state where it was formed — and make sure that you’re set up to pay state income and unemployment tax. Review whether your local municipality requires filing for a license or permit to operate your business. 

To satisfy Uncle Sam, apply for an EIN from the IRS . Confirm that no one else is using your business name by contacting your state filing office or online database. Some business structures require using a doing business as (DBA) name, and you may be required to open a business bank account.

7. Develop a marketing plan

Once you have a terrific name for your company locked down, you’ll want to create an online presence for your business. Be consistent on your social media channels , ideally creating accounts on the channels — meeting them online where they are. 

Develop a website that’s intuitive and filled with all the information your customers need. Your marketing may also include advertising campaigns and public relations.

8. Set up your CRM software

To enhance your marketing efforts and grow your small business, try customer relationship management ( CRM) for Small Business . This will be your solution for storing and managing prospect and customer information such as contact information, accounts, leads, and sales opportunities — all in one single source of truth. 

With Salesforce’s Starter Suite , you can start in minutes and easily manage your marketing, sales, and customer service as your business scales.

9. Launch your product or service

Congratulations: You’ve done all the hard work and you’re ready to introduce your product to the world. Make sure to announce your launch on social media — and consider throwing a media-friendly bash to celebrate.

10. Keep your customers happy

When you use CRM software, you can keep track and personalize support for all your customers. And happy customers are good for business — 80% of them say the experience a company provides is just as important as its products or services .

The United States has more than 33 million small businesses, according to the U.S. Chamber of Commerce , and that number represents 99.9% of all U.S. businesses. And most of those small businesses started the same way — with an entrepreneur and an idea. But it takes more than just a dream to launch a small business.

So, where to start?

It’s time to take some notes. First, start outlining your business plan. If you’re stuck, ask yourself these four questions when developing your plan :

• Goals : What do you need to accomplish to achieve your vision?
• Methods : What are the steps you need to follow to get you there?
• Measurements : How will you determine when each objective has been met?
• Obstacles : What could throw you off course along the way?

Once you’ve written a business plan and are feeling confident, you’re ready to establish:

A name for your business

A great business name should succinctly identify your company and its audience. Brainstorm and get feedback from friends, family, and potential customers. And before you fall in love with your new company name, make sure that an established business in your industry isn’t already using that name.

A location for your business

Choosing where to conduct business is one of the most important decisions you can make for your small business. While staying close to home may be your first instinct, a change of venue may prove to be financially advantageous.

A business structure

For tax purposes and protection of personal assets, you need to choose a business structure that offers the right balance of legal protections and benefits. Common business structures include sole proprietorship, partnership, limited liability company (LLC), corporation, and cooperative.

A legal presence

If you want personal liability protection, legal protection, and tax benefits for your company, you’ll need to register your business with state and local governments.

Federal and state tax ID numbers

Your Employer Identification Number (EIN) works like a personal Social Security number, but for your business. You need an EIN to pay state and federal taxes for your company.

Licenses and permits

Whether your business needs to apply — and pay for — licenses and permits depends on your business activities, location, and government rules. Review regulations from city, state, and federal agencies.

A business bank account

Opening up a bank account exclusively for business use will help keep your personal finances separate, making life easier at tax time. There are several banks that will allow you to open a business checking account with a zero balance, but traditionally banks will require an opening deposit of anywhere from $1,000 to $25,000.

Start-up funds

Even if you open a business checking account with a zero balance, you’re going to want to have some funds to cover basic operating expenses. The SBA offers guidance on obtaining funding for your small business, including loans, grants, and investors.

Starting a new business may feel like a gamble, but business insurance will help you cover your bet. The right insurance policy will help protect you against accidents, natural disasters, and lawsuits.

You should also consider:

Customer relationship management

A CRM platform keeps your customer data organized and provides the foundation to build connected customer experiences (that can be made even better through artificial intelligence). Starting with a suite of sales, service, marketing, and commerce tools is easy.

Invoice and billing software

While it is possible to keep track of your financial records on a traditional paper ledger, modern invoice and billing software makes the process much, much easier.

A graphic designer

A well-designed logo can make or break a business. The Nike “swoosh” was created by a graphic design student — and the $35 Nike initially spent paid for itself many times over.

Many small businesses exist with just a presence on social media, but having a professionally designed website adds legitimacy to your business.

Marketing experts

Like graphic design, marketing expenses are costs that many small business owners initially want to avoid. But strategically investing in a marketing campaign can be a boon for a small business that wants to make noise in a crowded marketplace.

A Human Resources department

Once your business grows to a certain size, it’s time to create a human resources (HR) department — or, at least, to hire an HR professional. This professional can focus on things such as labor law compliance, employee recruitment, employee engagement and development, and compensation and benefits management while you manage your business.

An assistant

For most small businesses starting out, hiring an assistant to perform administrative and clerical duties is something of a luxury. If your budget is tight, consider a virtual assistant .

What are some popular small business ideas?

If you have a unique idea for a small business, great. But some of the best small business ideas build on your strengths and experience. What do you love to do? What lights you up when you are helping the community? Do you have a pull to do something more?

What are the odds that my small business will succeed?

Starting a small business is no guarantee of success. Approximately 80% of small businesses survive their first year, according to the Bureau of Labor Statistics. The survival rate decreases to 50% after five years and 30% after 10 years.

What are some Fortune 500 companies that started small?

Not all big companies started with millions of dollars in venture capital. Some of America’s biggest brand names had far more modest beginnings . Apple famously got started in a Silicon Valley garage, while Mattel was building dollhouse furniture from picture frame scraps in its early days.

What are the most business-friendly states?

Before setting up shop in New York or California, consider launching your small business in North Dakota, Indiana, Arkansas, South Dakota, or North Carolina. These states offer the best conditions to start a business , according to Forbes Advisor.

What can I deduct for my small business at tax time?

(Almost) everyone knows that you can deduct entertainment and travel expenses as a small business owner. But you can also deduct software subscriptions, office furniture, and interest on small business loans, according to NerdWallet .

Taking the leap to start your own small business is just the first step on your entrepreneurial path. But you’re in good company. Nearly half of all U.S. employees are employed by a small business — and more than 80% of those small businesses are solo ventures , according to Forbes Advisor. There’s no better time than the present to start turning your dreams into reality.

Want to grow your new small business? Sign up for a Salesforce free trial .

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Brett Grossfeld is a Product Marketing Manager supporting Salesforce's CRM, data, and AI tools. He's written for multiple websites across various industries and interests, including tech, wellness, and modern customer experiences.

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I Wish I Knew This About Google Before Trying My Growth Strategy Smart digital marketers love to sharpen their pencils while optimizing ad campaigns. But, as you will learn in this article, there is such a thing as over-sharpening your pencil to the point it breaks when you press on it, putting the entire campaign into a death spiral.

By George Deeb Edited by Micah Zimmerman May 24, 2024

Key Takeaways

• Google needs data to work with, and its algorithms need a minimum amount of data to do their job successfully.

Opinions expressed by Entrepreneur contributors are their own.

I have been a digital marketer for over 30 years, living by the mantra of making data-driven decisions that maximize your return on ad spend (ROAS). Like any good marketer, you will always be testing and tinkering with your ad campaigns to optimize your copy, creatives, landing pages and messaging to get you the best results in the form of your highest ROAS or lowest cost of customer acquisition (CAC).

But something happened with one of my businesses in the last few months: Over-optimizing the campaign caused the bus wheels to fall off. I had never seen that before, and I thought this case study was worth sharing with you so you don't repeat this same mistake.

Related: Forget Google and Facebook. Use These Marketing Tips Instead.

The situation

We had been growing our Restaurant Furniture Plus e-commerce business consistently over the last few years. The growth strategy was almost entirely Google Ads-focused, where if we wanted to increase revenues, all we needed to do was spend more money with Google year over year. We have also increased our annual advertising budget from $100,000 to $2,000,000 over the last few years.

Things were largely going fine. As we scaled advertising spend, our revenues scaled along with it in a pretty consistent way. We weren't overly optimized in our efforts; we simply managed the campaign with a few high-level metrics to ensure we were heading in the right direction.

Those metrics included our ROAS and Cost Per Lead (CPL), which were largely unchanged over the years, ignoring one-time anomalies in the market — like COVID-19 in 2020. We biased CPL over CAC since we could easily tie Google Ads into our Call Rail tracking data at the campaign level and couldn't connect our CRM data to Google at the time.

But, after we upgraded our CRM with one that better enabled a direct data tie to Google Ads, we thought the campaign could perform more profitably if we engaged a more sophisticated marketing agency with more experience running campaigns based on CAC instead of CPL. An agency that would be more "in the weeds" than we were as business executives, optimizing everything within the campaign, including the keywords, creatives, landing pages, product segmentation, audience targeting, etc. We felt the biggest opportunity was managing the campaign at the CAC level, as opposed to the CPL level, since we figured knowing if a customer purchased from us was more important than if they contacted us. It sounded pretty reasonable, right? But keep reading.

Our ad agency's plan

Our advertising agency was very bullish on connecting our CRM data directly with Google Ads, to let Google know which ads of theirs lead to actual buying customers. The agency had a lot of success with their other clients with this strategy, and they were confident it would work for us. We did a lot of work to set that up and launched it, crossing our fingers it would lead to a material decrease in our CAC and a material increase in our ROAS.

But what followed had us all scratching our heads. Instead of improving our campaign , this action actually hurt it. All of our marketing metrics started to move in the opposite direction — our CAC doubled, and our ROAS cut in half. None of us really had an explanation for what had gone wrong until we started to do a little more digging.

What happened?

The single change we made, which we thought would help us, actually hurt us. We changed our primary data point that we wanted Google to optimize for from a number of leads (e.g., phone calls and email form fills) to a number of customers (e.g., closed transactions in our CRM). And, more specifically, we didn't care about online customers who purchased on our website, we only cared about offline customers who purchased with our team of expert project managers because our average order size of offline orders was 3x that of our average order size of online orders, by adding that personal human connection and having the opportunity to upsell the order. But, from a data perspective, that meant we went from sending Google 1,000 data points per month from phone calls and emails to only sending Google 100 data points a month from the offline transactions that were directly sourced from Google.

Remember, Google is an algorithm, and it needs data to digest to do its work. The more data, the better. By making this move, we were effectively "starving" Google by cutting back the data points. And what does Google's algorithm do when there isn't enough data to work with? It becomes paralyzed and doesn't know what to do. So it starts "spraying and praying" across its entire network, where it can hopefully generate more useful data and results to work with. And, what happens to your advertising effectiveness during this time? It basically gets flushed down the toilet.

Related: This Google Update Could Be Tanking Your Traffic. Follow These Steps to Significantly Boost Your Page Views and Revenue Now.

Once we learned what the issue was, it was a simple fix: we basically returned to our old ways, telling Google to optimize on the leads data instead of the transaction data. That started feeding Google's algorithm again, and good things happened. Our ROAS and CAC returned to the historical levels once the campaign wasn't strangled and suffocating anymore.

The lessons learned

There were many lessons learned here. First, we mentioned above that Google needs data to work with, and there is a minimum amount of data that Google needs for its algorithms to do their job successfully. We had choked it. Secondly, there were a lot of very smart veteran marketers around the table who all collectively bought into the strategy that failed.

So, even experts can make mistakes. In this case, the agency's success with other clients was due to those other clients being materially larger than we were, sending Google a lot more data than we were able to send them. And, lastly, there is a point in your marketing campaigns that you simply have "over-sharpened" your pencils, to the point the tips break off when you press on them.

Yes, campaign optimization is good and needed, but over-optimization could end up being the noose around your neck. So, as you are tuning up your campaigns, don't turn the dials up too high or you may bust a few springs along the way.

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Managing Partner at Red Rocket Ventures

George Deeb is the managing partner at  Red Rocket Ventures , a consulting firm helping early-stage businesses with their growth strategies, marketing and financing needs. He is the author of three books including  101 Startup Lessons -- An Entrepreneur's Handbook .

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How to start a jewelry business: a comprehensive guide.

Do visions of unique rings, necklaces or bracelets live rent-free in your head? Are you drawn to shiny trinkets like a happily hopping crow? Even better, do you have those qualities and have good people skills? If the answer is yes, you may have a bright future as a jewelry startup owner! But how to start a jewelry business yourself is a question you might be asking. We’re glad you asked.

If you are seriously considering starting this exciting venture, we’ve created the following guide to help you get your startup off the ground.

How to Start a Jewelry Business in 18 Steps

Ready to learn how to start a business making jewelry? This guide will show you everything from finding your niche to scaling your business for future growth. It ensures you have all the tools you need to excel as a jewelry startup.

1. Find Your Niche

Start things off right by choosing a proper niche. This includes narrowing down what type of jewelry to make and sell . Doing so sets your offerings apart and captures the attention of your market. A niche finder tool can help with this task.

A good niche finder tool lets you explore potential niches within the jewelry market, fill gaps and identify ways to make a profit. Online marketing companies like Semrush and Qualtrics have online market research tools, including niche finder tools, that you can use.

Also, finding a niche that aligns with your tastes and creativity is highly desirable. Not every niche fits every jeweler, but focusing on what genuinely interests you can greatly enhance your chances of success.

Consider these niche ideas for your jewelry startup:

• Fine Jewelry: Craft pieces with precious materials for high-quality appeal.
• Fashion Jewelry: Create trendy, affordable accessories.
• Custom Jewelry: Offer personalized designs for individual preferences.
• Wedding and Engagement Rings: Specialize in custom bands and rings, often high-ticket items.
• Gemstone Jewelry: Focus on colorful gemstones for diverse customer appeal.
• Personalized Jewelry: Design items with names, birthstones, or special symbols.
• Commemorative Jewelry: Produce pieces like class rings or charm bracelets that celebrate milestones.
• Handmade Jewelry: This jewelry is made with a personal touch and is often made to order.
• Costume Jewelry: Craft pieces with imitation materials such as wood, plastic, and synthetic diamonds for trend-focused customers.

2. Research Your Competition

When entering the jewelry market, you don’t need to reinvent the wheel. Instead, you can research and analyze what existing brands are doing with thorough market research. The business insights it grants help you stay abreast of broader market trends.

This approach helps you adapt your jewelry line more precisely to your target market. It also helps you better establish product ranges, pricing and customer service.

You can use market research to evaluate competitors’ strengths and weaknesses to pinpoint opportunities for your products to shine. This analysis helps you spot market gaps and tweak your offerings.

Focus groups, interviews, and surveys are the top market research methods. Additionally, you can use a market explorer research tool to get a comprehensive view of the market. A few notable market explorer research tools include Ubersuggest, Ahrefs, Statista and SurveyMonkey.

3. Online Jewelry Business vs Brick and Mortar Jewelry Store

Deciding whether to go with a digital jewelry endeavor or a physical location is often challenging. One thing is for certain: Your choice should align with your business goals, customer engagement strategy and operational plan.

You can make the decision much easier by weighing both options’ pros and cons.

Digital Store

• Startup and operational costs are lower (good for the budget).
• Access to a global market equates to more reach.
• Better competitive pricing for bargain hunters.
• Limited personal interaction may whittle away consumer trust.
• The product visualization experience isn’t optimal. It may increase return rates.

Brick-and-Mortar Store

• More personalized service. This builds loyalty and elevates the buying experience.
• A physical location gives immediate hands-on experience. Customers can try on and thoroughly examine jewelry.
• Retail space and maintenance lead to higher costs.
• Geographical limits. The customer base is limited to local or regional levels.

4. Choose a Business Name

You don’t want your business to sound generic. Make it unique and memorable to refine your jewelry brand’s identity and appeal to your customers. In addition, if your business name is odd or you use someone else’s, you may even run into legal hassles or pressure from the powers that be to change it.

To avoid any troubles and develop an effective brand name, select a business name that:

• Represents Your Brand Identity: Choose a name that reflects the style and essence of your jewelry. It must set the tone for customer expectations. For example, the product should exemplify luxurious aspects if you offer luxury.
• Imparts Memorability and Simplicity: It’s good to opt for a name customers can easily remember, pronounce and spell. That way, it simplifies online searches and increases shoppers’ chance to remember your brand.
• Has an Available Domain: Don’t step on someone’s toes. Ensuring the corresponding domain is available guarantees originality and strengthens your online presence.
• Has No Trademark Issues: Confirm that the name isn’t already trademarked to avoid legal issues and distinguish your brand.
• Doesn’t Offend Anyone: If you aren’t easily offended and want a good laugh, go to this link and find out what Liquid Nation Brewing was named originally. Needless to say, the name didn’t work out in its location in a bible belt city.

For inspiration, use online tools like Shopify, Namelix, Getsocio, and Canva, which generate creative name suggestions based on your input keywords. These generators can kickstart your naming process by offering unique options and checking for available names suited for your new business.

5. Create a Jewelry Business Plan

Creating a solid plan helps you establish your jewelry brand. It is an indispensable roadmap, helping you smoothly meet your company’s goals. Here are the elements to include:

• Market Analysis: Understand your market size, trends, and customer demographics.
• Business Model: Outline how your jewelry brand will operate, generate revenue, and deliver customer value.
• Operational Structure: Detail the production logistics, whether handmade or outsourced to premium manufacturers. Include plans for potential repair services, which can impact operations and budget.
• Financial Projections: Provide detailed forecasts for expenses, revenues, and profitability. Estimate the startup capital required to launch and sustain your business until it becomes profitable.

As you further refine your business plan, consider the following components that are essential for your jewelry brand’s success:

• Marketing Strategies: Develop tactics to reach your target audience, differentiate your brand, and outline how you’ll communicate your unique selling points.
• Type of Jewelry: Decide whether you’ll focus on the finest jewelry, fashion pieces or a blend of both.
• Business Location: Consider whether you will operate from a home office or rent a commercial space.
• Staffing Needs: Assess if and when you need to hire staff.
• Pricing Strategy: Establish how you will price your products to cover costs and achieve desired profit margins.
• Unique Selling Points: Identify what makes your jewelry stand out from competitors.
• Target Audience: Clearly define who your ideal customers are.

There are online resources available that simplify the process of writing your plan.

6. Register Your Business

As part of legalizing your business venture, choosing the right business structure is one of your most sound decisions. You have many options to register your business. Each is structured to provide legal protections and tax implications specific to your business.

The main ones are sole proprietorships, partnerships and Limited Liability Companies (LLCs):

• Sole Proprietorship: This is the simplest way to register your business since it involves minimal paperwork and offers tax benefits. However, it doesn’t protect personal assets, which could be risky if your business faces debts or legal challenges.
• Partnership: This structure is the best one for businesses with multiple owners. Another pro is that it allows pass-through taxation. Unfortunately, as with sole proprietorships, it does not protect personal assets from business liabilities.
• Limited Liability Company (LLC): LLCs offer asset protection and feature flexible tax options. The Small Business Administration (SBA) offers guidance on setting up an LLC on its website.

7. Apply for Licenses, Insurance, and Permits

A jewelry startup requires several legal documents and insurance policies to ensure compliance and protection. Here’s a breakdown of what you may need to operate your business safely and legally:

• Business License: Most localities require a general business license to operate legally. Check with your city or county for specific requirements.
• Seller’s Permit: If you are selling goods, most states require a seller’s permit to sell your products legally. This allows you to collect sales tax from customers.
• Zoning Permits: If your business operates from a physical location, you may need zoning permits to ensure it complies with local ordinances.
• Home-Based Business Permits: Certain municipalities require specific home-based business permits if you operate your business from home. Verify local licensing and permit requirements with your local clerk’s office if operating from home.
• General Liability Insurance: Protects against financial loss resulting from claims of injury or damage caused by your business operations.
• Product Liability Insurance: Important for jewelry businesses as it protects against claims of harm caused by products you sell.
• Professional Liability Insurance: If you offer services such as jewelry appraisals or custom design, this insurance can protect against errors and omissions.
• Property Insurance: Covers loss and damage to inventory or equipment from theft, fire, and other disasters.
• Specialty Trade Permits and Licenses: You might need specific trade licenses depending on the type of jewelry you create and whether you handle precious metals and stones.

This list isn’t exhaustive, so ensure you check with local, county, and state authorities to understand all required licenses and permits fully.

8. Create a Jewelry Business Marketing Plan and Marketing Strategy

Today, you need a killer marketing plan and strategy to sell jewelry effectively. Here’s how to make it happen at your own jewelry business:

• Brand Definition: To shape customer perception, define your brand’s aesthetics, mission, and key message.
• Digital Marketing
• Social Media Posts
• Email Campaigns
• Traditional Advertising
• Logo Creation: Create a distinctive logo that serves as your brand’s visual symbol and boosts recognition.
• Scalability and Positioning: Focus on scalability and market positioning to establish a strong presence that highlights your products’ uniqueness and enhances brand value.
• Website Development: Develop a professional website with engaging designs and robust e-commerce functionalities to optimize customer experience and improve online visibility through SEO and content marketing.
• Business Incubator Utilization: Utilize a business incubator to refine branding efforts and reduce costs with essential resources and affordable office space.

9. Develop Your Jewelry Line

Your jewelry line is a category of related jewelry pieces categorized by factors like quality, price, and demographics. Your product line should also represent your brand in the best light. So, when you are developing your product line, be sure it’s innovative and maintains high quality in design and materials.

During this step, determine the types of jewelry you plan to offer. Here are a few examples:

• Fine Jewelry: Crafted from precious materials like gemstones, gold, silver, and platinum, targeting buyers seeking high-quality, durable items.
• Costume Jewelry: Made from base metals and synthetic gemstones, these pieces are more affordable and trend-focused,
• Bespoke Pieces: Personalized, custom designs catering to a niche market.
• Watches: Includes both high-end and fashion watches with functional, stylish appeal.
• Brooches: Focuses on vintage and revival styles, offering unique styling opportunities.

Inspiration for your designs can come from various sources, such as favorite designers, current trends, market research, or classes and tutorials on how to make jewelry.

Once your designs are finalized, consider how to manage production and bulk procurement of materials efficiently.

10. Find a Supplier

You will need materials to operate, so your next business order will be to select the right company to get yours. The best suppliers are focused on quality, cost-effectiveness, and reliability. When sourcing materials or finished products, prioritize vendors consistently delivering high-quality supplies. Evaluate their pricing to ensure it aligns with your budget without compromising the standard of your jewelry making.

Look for the following in a reputable supplier:

• Assess Supplier Reliability: Choose suppliers with excellent track records in timely deliveries and product quality.
• Negotiate Terms: Engage in transparent negotiations to secure favorable terms, such as bulk pricing or flexible payment options, which can significantly lower costs.
• Build Partnerships: Aim to establish long-term relationships with suppliers. This can lead to better service, reliability, and potential discounts in the future.
• Consult Peers: Talk to other jewelry designers for recommendations on trustworthy wholesale distributors.
• Reseller License: Consider obtaining a reseller license to avoid paying local sales taxes on bulk purchases and reduce overall material costs.

11. Define Your Jewelry Production Methods and Processes

A jewelry business owner who knows the equipment and methods involved in manufacturing can map out their floor plan. This knowledge can help them outline their business’s costs and requirements.

Arrange the necessary equipment in a linear, sequential layout to keep the production process lean and efficient. This setup minimizes movement and saves time, making your manufacturing process more streamlined and cost-effective—an excellent selling point when entrepreneurs apply for business loans.

Additionally, don’t forget to formally document your production methods and processes using standard operating procedures (SOPs). They help standardize your process and prevent unwanted evolution of procedures.

12. Budget for Your Jewelry Startup

Over 80% of businesses fail due to a lack of cash. Startups often underestimate business costs, including marketing, insurance, staffing and licensing fees. To avoid that issue, prepare a detailed business budget that lists all anticipated startup costs, including:

• Marketing Materials.
• Office Space.
• Daily operational costs.

Afterward, closely evaluate your available funds. Then, add any additional financing you require. Budget templates provide a well-structured financial plan to assist you in this process.

Financial experts suggest that business owners pad their startup expenses by around 10%. That way, there is a fund to protect against shortages and other unexpected issues. They should also reserve funds to ensure profitability.

In addition to initial costs, ensure you budget enough for ongoing material costs, maintenance and other monthly expenses.

13. Price Your Jewelry

Pricing your jewelry right is key to ensuring a lucrative business. If the price is too low, you lose opportunities to make more money; if it is too high, you risk alienating your customers.

Here are some strategies to help you set competitive prices:

• Break-Even Analysis: Calculating the total cost of production. The figure should include materials, labor and overhead. The resulting figure helps you determine the minimum price your business needs to break even.
• Market Research: Study similar products in the market to get a feel for your competitors’ pricing. This insight helps gauge what customers are willing to pay. Then, identify a suitable price range that’s on market standards.
• Perceived Value: Uniqueness, craftsmanship, and brand reputation can often elevate the buyer’s perceived value, allowing for higher pricing.
• Pricing Strategy: Choose a pricing strategy that aligns with your brand identity and target audience. Whether it’s premium pricing for exclusive collections or competitive pricing for more accessible pieces, ensure your strategy matches your market positioning well.
• Regular Reviews: Continuously monitor and adjust what you charge for your prices based on elements like cost changes, customer demand and market conditions.

14. Open a Business Bank Account and Secure Funding

Unfortunately, you can’t do much business without money. As such, securing funds is an essential step in launching your business. Open a business bank account to start things out right and manage your finances. The business account should be separate from your personal account to maintain clear financial records and avoid any tax snafus.

Consider financing options that equipment manufacturing lenders might offer for more costly equipment. This approach can help ease the initial financial burden and manage cash flow more efficiently during the start-up of your business.

15. Get Your Product Photography Right

Grainy, low-quality images of your products are not visually appealing, and customers can’t fully appreciate your beautiful jewelry line. Therefore, high-quality product photography is a must for jewelry sales. This statement particularly applies to e-commerce businesses, where visuals influence purchasing decisions.

Here are tips to maximize the visual appeal of your jewelry photography:

• Lighting: Utilize soft, diffused light to minimize harsh shadows and bring out the sparkle in your jewelry.
• Background: Opt for simple, uncluttered backgrounds that don’t distract from the product. Neutral or light colors tend to highlight jewelry best. You can also invest in jewelry displays for craft shows and photography.
• Photo Editing: Enhance your photos with editing software to correct lighting, improve contrast, and ensure colors are true to life.
• Consistency: To strengthen your brand identity, maintain a consistent style across all images. This includes using similar setups, angles, and editing techniques.

Investing in professional photography or learning advanced photography skills can significantly improve the attractiveness of your products, thereby increasing the likelihood of sales. If you want to outsource Step 15, hire a professional photographer to snap pics of your merchandise instead.

16. Launch Your Business

Consider a soft launch for your company that uses select products to gather initial feedback and make adjustments. Then, plan a grand opening that can be held online or physically. Use targeted promotional strategies like social media announcements, special offers, and local advertising to generate buzz and attract customers.

Consider hiring employees to assist with sales, customer service and daily operations during this phase. Effective staffing will support your business’s launch and ongoing activities, ensuring a smooth operational flow from day one.

17. Fulfill Orders and Ship Products

Maintaining customer satisfaction and operational efficiency is the bedrock of any business. If you don’t have effective order fulfillment, you are in for massive problems (we’re talking dealbreaker problems here).

To fulfill orders, start by choosing the right logistics software platform. The solution should integrate seamlessly with your inventory system. For shipping, choose the right packaging. It should attractively protect and present the jewelry, enhancing the customer’s unboxing experience.

Decide between self-fulfillment and using third-party logistics (3PL) services, which can streamline the process and decrease overhead. 3PL services offer receiving, storage, packaging, and shipping solutions so that you can focus on your core jewelry operations and growth.

18. Scale Your Successful Business

Now that everything is running smoothly, it’s time to prepare for more success by scaling your business. There are many ways to do this, but the best way is to focus on expanding your reach in new markets and broadening your jewelry product lines.

Another excellent way to scale your business is to implement a flexible, robust inventory system that seamlessly responds to business growth. The best inventory system should be specific to the jewelry industry. to manage increased demand efficiently. Pay attention to customer feedback since it will help you innovate and improve product offerings.

As your business grows, you should always strive to maintain high-quality products and a high standard of customer service. Don’t let expansion be an excuse to compromise your business’s core values.

FAQs: How to Start a Successful Jewelry Company

How much money do you need to start a jewelry business.

The startup cost will vary widely based on the setup and type of jewelry offered. That said, expect the initial costs of a home-based business to range from $2,000 to $10,000. Those figures cover elements like basic tools, materials, and design software. It also includes potential expenses for setting up your website, online marketing and the necessary licenses.

If your startup is a brick-and-mortar location, you’re looking at a larger investment–somewhere between $20,000 and $50,000. That figure covers things like leasing, equipment, raw materials and storage. Additional costs include utility bills, employee salaries, and marketing.

What do you need besides capital to start a jewelry business?

Besides capital, a jewelry company requires a solid business plan, reliable suppliers, business insurance, effective marketing strategies and appropriate jewelry-making tools. It also needs essential licenses and permits to operate legally.

How much space is needed for an at-home jewelry startup?

You don’t need as much storage space for jewelry as you do for larger items like clothing and electronics. Also, you might not need extra space for inventory–a spare corner of your home could do.

How do you start selling jewelry online?

To start your own online store, first determine what type of jewelry to sell . Then create a professional website or consider selling jewelry on Etsy , Shopify, or other existing Ecommerce platforms. Next, upload high-quality photos of your jewelry, set competitive prices, and give them engaging product descriptions. Utilize social media and digital marketing strategies to drive traffic to your online store and connect with potential customers.

Are jewelry businesses profitable?

Yes, especially if you have a unique niche. Consider this: Mikimoto cultured the first pearl. Capitalizing on that niche, the company is now worth a staggering $1B! While that example may not be typical, the average monthly revenue for this type of business typically ranges between $10,000 and $100,000.

• How to start a crystal business

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