So, you have taken the first step and made the decision of opening a restaurant in Dubai. The next step involves preparing a business plan to transform your dream into a reality in a calculated and prudent.
Contrary to popular belief, it is not difficult to make an effective business plan for a restaurant, but this is where most entrepreneurs tend to get stuck. The key lies in knowing what to include, and what not to. The clear objective should be to excite investors with the potential profitability of your concept as opposed to boring them with unnecessary information.
What goes into the making of a winning business plan for a restaurant, you ask? Here’s a look at 7 must-have components that every budding restaurateur should include in their business plan:
1. Executive Summary: This is an integral part of your Business Plan, as it provides a snapshot of your entire strategy. The aim is to provide an overall investment rationale by listing your objectives, explaining the potential of your concept and detailing the financial requirements and returns over a long term. This should be informative, yet concise and easily understandable.
2. Business Overview: Provide an overview of the restaurant industry in the country of choice and how your restaurant fits into the segment. Explain the key differentiators of your concept and identify and define what your competitive edge is that will make your business profitable.
3. Marketing Strategy: Focus on explaining the positioning of your brand in the marketplace. Define your target market, pricing and promotional strategies.
4. Competitive Analysis: Understand the competitive landscape on a macro and micro level. Identify your main competitors and list out their key strengths and weaknesses against yours. Use this information to then develop a competitive strategy.
5. Development Plan: Outline an investment budget and define how funds will be allocated pre-opening and post-opening. Non capex pre-opening costs also need to be accounted for such as, labor related expenses, branding and interiors, sales and marketing, public relations, menu design and development etc.
6. Operations & Management Plan: List the organizational structure of your restaurant, the individual duties of your management team and any associated operational expenses. Introduce your partners and key personnel, elaborating the role to be played by each.
7. Financial Estimates: This is one of the most important sections of a business plan. It should include a three to five-year projection of the business’ financial statements including – cash flow statements, balance sheets, profit and loss statements and overall investment summary and rationale.
More often than not, getting all the above-mentioned financial and technical details can be quite tricky; we suggest enlisting the help of professional hospitality consultants to offer the most effective solution. A leading name in this category is Dubai-based Ribbon Consulting – a specialized hospitality consulting firm known for its end-to-end customized solutions. Ribbon Consulting can help create a detailed business plan for you that will help guide you in the right direction towards creating a successful business venture.