Tips on creating a very good business plan?

[Drunk Skunk]

I've had all my random questions answered so far by CP, as well as seeing many other random and odd questions answered. I figured I'd give this a shot, since I don't really have a good idea how to go about it.

Without going into too much detail, I think I have an idea for what could be a very successful restaurant. A low to moderately priced place that would cater to college kids basically, or someone just looking for a place to get a sandwich and soup. There's no place like this around, and there's a great location near a college around here, within walking distance.

My question is how do I go about getting a professional business plan together? I have no formal business training or schooling, and I'm sure that will negatively impact my chances of getting a small business loan. Am I totally SOL because of that? I've done my own market research. With the help of my sister, who was a marketing major, I've drawn up some preliminary marketing ideas as well. I also have a few 'small time' investors that have said they would be in if I am able to secure a backer. Any help would be really appreciated.

[CaptainCrunch]

http://www.virtualrestaurant.com/sample.htm

There's several free templates that should give you some ideas here

http://www.bplans.com/Sample_Busines...usiness_Plans/

[kermitology]

1. Open restaurant
2. ???
3. Profit

[Barnes]

A business plan is not terribly different than an extensive marketing plan. Make sure your executive summary is very good just in case your plan gets skimmed. Make sure the presentation is professional and creative.

If you've done your research and you truly believe that this particular market is missing what you can provide and there is demand, it should be pretty easy to convince the bank if your passionate about it. Include things like a mission statement, sales strategies, what your competitive edge will be and what products and services you will provide.

Be positive. Tell them exactly how much money your going to put in, where it's coming from and how much you'll need. Make sure you include at least a 3 year balance statement, cash flow statements, etc and based on your calculations, come up with a break even point where you think you will start making money.

This isn't a make your own pizza pie joint, is it? (Just finished Seinfeld Season 1)

[Fozzie_DeBear]

Originally Posted by kermitology

1. Open restaurant
2. ???
3. Profit

Brought to you by Underpant Gnome, MBA

[MarchHare]

Also, keep in mind that the vast majority of new businesses fail because the owners a) over-estimate revenue and b) under-estimate expenses. When dealing with anticipated figures, I'd be very conservative with your estimates.

[nickerjones]

Originally Posted by kermitology

1. Open restaurant
2. ???
3. Profit

you dont happen to belong to a site called pbnation do you kermitology??

[MarchHare]

Originally Posted by nickerjones

you dont happen to belong to a site called pbnation do you kermitology??

That joke is all over the internet. It originated from an episode of South Park.

[Prototype]

I'd call FOX and get on Kitchen Nightmares... but that's just me

[Fozzie_DeBear]

Try this group...they may connect you with people who can help you avoid fatal f-ups

www.illinoisrestaurants.org

[4X4]

There is software for this. Infact, it is sitting in the drawer right beside me. And if you want, I'll hook you up. But consider this... Have you read any other business plans? Do you have a clear idea of what a business plan looks like? Where are you on this? Are you totally intimidated like you were the first time you scratched out a resume? If so, then you'd better look at a few business plans before you try to write your own, software or no.

I'll tell you this, the bank has no sympathy. A 'real good effort' is not going to pass when it comes to a business plan presented to a banker. If your idea is legit, your business plan needs to prove it, systematically and succinctly. And the bank may or may not take a chance on you.
But if your idea really is legit, you're probably better off with private investors. A business plan/proforma and a good presentation may land you a good private investor.
And don't forget to also look into grants. There are alot of grants available to alot of people, businesses... If you're really serious about your idea, look into all this stuff before you talk to anyone about money.

[Muta]

Drunk Skunk, private investors may be the way to go. Make sure you tailor your business plan / marketing plan to suit their needs.

As long as you've done your market research and you believe there's a potential for a profit, someone will bite. Just make sure your research is sound and supporting. Otherwise, it will turn potential investors off.

Make sure you are thorough with your financial projections in there too.... numbers - especially solid ones - can be very convincing.