Anyone wishing to own and operate their own restaurant has to begin by writing and then following a very specific business plan. There is nothing in life that can be accomplished without first having a plan. And owning a restaurant, which is very rewarding but very difficult, certainly needs a plan.

All business plans need to be very specific. They need to map out exactly what should happen with each facet of the restaurant business. All plans need to include a Strategic Objective, an Analysis of Competitors, a Market Assessment, and SWOT.

A Strategic Objective for any restaurant is basically a revenue plan. How do you plan to make money with your restaurant? How much is food going to cost you including transport, storage, etc? What about spoilage? And then how much will you charge for each dish on the menu and how much money can you expect to net (earn after cost) from each dish? You need to take a specific and thorough look at how you plan to make money and you need to be honest with yourself too.

Before you open-up a restaurant you need to take a look at your competitors. Consider what type of niche your restaurant is in and then take a look at whatever other restaurants are in the same niche within thirty-five miles. Remember to consider the number of stars as well – if they are a different number of stars then they are competing for a different clientele. Of course your actual analysis would have to dig much deeper than just seeing what’s nearby your location.

The Market Assessment portion of all restaurant business plans should include the potential for your restaurant to make money. Take a look at all the important census data that is available to you. Then from that information decide how much potential for success your business may have. For example, a restaurant designed to attract a younger crowd would work well near a college campus but not so well near a retirement community.

Finally, all plans should include SWOT, which stands for strengths, weaknesses, opportunities, and threats. This means that you analyze your strengths, weaknesses, opportunities, and threats. You need to be very honest and very specific with this part of the plan. This is the information that you can use to grow in the right direction so that your restaurant becomes very successful. So make sure you are being honest to yourself, especially with your strengths and weaknesses.

All restaurants, both new and old, need to have a restaurant business plan before getting started. However, these plans are even more important for newer businesses. This is because it takes so much planning and organization to successfully get a new restaurant off the ground and running. Four things every restaurant business plan must include are a Strategic Objective, an Analysis of Competitors, a Market Assessment, and a list of Strengths, Weaknesses, Opportunities, and Threats (SWOT).

When you are planning for the future of your business, you often wish you had a crystal ball. While this is an unrealistic wish, the truth is there are a number of programs available that can give you the information you require. It is not enough to simply guess what the future will hold for your business. You need to invest in forecasting software which can provide you with the answers you need. When you are involved in strategic planning, you need to be able to take a look at several different business models with ease to help you decide what the right course of action for your business is.

Quality forecasting software can often work in conjunction with budgeting software so that you can analysis your current position and what is going to impact your business in the future. First, the forecasting software will predict what the demand for your product or service will be. It will use that to determine whether the number of employees you have now is appropriate. It will also take a look at your resources and determine whether you have what you will need.

Another important function of forecasting software is to help you decide how much you should charge for your goods or services. This will lead to an examination of how much money you can expect to make. The software will also help you understand the market and predict how the market will change. You should also be able to get an idea about which investments should be considered.

When choosing your forecasting software, you need to make sure that you pick a package that offers quality options. It should be able to take large amounts of data and then make an equally large number of forecasts quickly. It should be able to determine if there are any abnormalities in the data which need to be discarded. The program should be simple to use even if you are a beginner. Finally, you should be able to present a complete planning package that includes analysis of your data and forecasting. It is also easier if the software comes with the ability for you to create charts and graphs. This can allow you to present the material to others in an easy to understand way.

Forecasting is essential to a business that wants to succeed. You can not attempt to run a business on guesswork alone. Strategic planning relies on forecasting and you should be able to rely on forecasting software to give you the answers you need.

I have a friend and business partner who is probably the world’s foremost expert on buying businesses.

Over the past 50 years he has bought somewhere around 200 (he’s lost count) businesses, and still going strong today.

And one of the jokes he likes to make goes something like this:

“There are three things people are afraid of in life: death, taxes and business plans.”

In fact, from his experience, he says the business plan is the most dreaded part of the whole business-buying process.

And yet, it doesn’t have to be.

Here’s why:

While it’s true you do need a business plan if you want to get money from a bank, an investor or any other financing source…writing a business plan really isn’t all that complicated.

In fact, a business plan basically just a sales document with three main components:

1.) How much money you need.

2.) What you need the money for.

3.) How you’re going to pay the money back.

And that’s it.

See?

That’s not so complicated, is it?

All you need to know besides the above is how to structure a business plan (there are books in your local library that can help you with this free), and you’re ready to go.

Bottom line?

Don’t put off buying a business just because you’re afraid to write a business plan or don’t think you can afford to hire someone to do it for you.

If you simply educate yourself on the topic (again, go to any library and learn it free), you will be up and running with your own business in no time.