Restaurant Startup Feasibility Model - Hourly Labor Projection Worksheet Restaurant Startup Feasibility Model Whether you're planning the opening your first restaurant or adding another location, a thorough analysis of the financial feasibility of your project is essential.
By Richard Harroch In: Business Planning Traditionally, startup businesses draft a business plan for three specific reasons: But what if I told you that business plans for startup companies are usually not worth the effort?
My many years of experience working with startups, entrepreneurs, and venture capitalists has led me to conclude that business plans are largely a waste of time for the following reasons: They are time consuming.
Thorough business plans take a long time to prepare, even if you use business planning software. They get outdated quickly. Your business plan quickly becomes obsolete as you encounter operational and marketing issues. Nobody has time to read them. They review hundreds if not thousands of startup opportunities, so you have to grab their attention with something much shorter.
So instead of wasting your valuable time preparing a business plan, I suggest that you do these five things instead when launching your startup: Raising capital from investors is difficult and time consuming.
You want your investor pitch deck to cover the following topics, roughly in the order set forth here and with titles along the lines of the following: The Team who are key team players?
The Problem what big problem are you trying to solve? The Solution what is your proposed solution? The Market Opportunity how big is the addressable market? The Product give specifics on the product The Customers who are the target customers?
The Technology what is the underlying technology? The Competition who are the key competitors? Traction early customers, early adopters, partnerships Business Model what is the business model?
The Marketing Plan how do you plan to market?
Too many startups make a number of avoidable mistakes when creating their investor pitch decks. Copyright by [Name of Company]. Do include visually interesting graphics and images. Do send the pitch deck in a PDF format to prospective investors in advance of a meeting.
Do plan to have a demo of your product as part of the in-person presentation. Do tell a compelling, memorable, and interesting story that shows your passion for the business. Do show that you have more than just an idea, and that you have gotten early traction on developing the product, getting customers, or signing up partners.
Do have a sound bite for investors to remember you by.
Do use a consistent font size, color, and header title style throughout the slides. Your in-person presentation will give you an opportunity to add and highlight key information.
Having a prototype of your product makes it easier to sell your vision to investors. It also gives you some momentum and traction and helps you recruit partners and employees. Undoubtedly, version 1 of your product will not be as good as version 2 or version 3, but you need to start somewhere.
When starting out, your product has to be at least good if not great. Everything else follows from this key principle.
Thoroughly Research the Market Opportunity and Your Competition Make sure you are thoroughly researching the market opportunity and competitive products or services, and keep on top of new developments and announcements from your competitors. One way to do this is to set up a Google alert to notify you when any new information about those companies appears online.
Expect that prospective investors in your company will ask questions about the market opportunity and your competitors. So anticipate these questions from investors: How big is the addressable market? How much of it can the company realistically capture?
What traction have those competitors obtained?6 Steps for Preparing Financial Projections for Startup Business in India Step 1 – Start by preparing a revenue forecast and a forecast profit and loss statement.
Also, prepare supporting schedules with detailed information about your projected personnel and marketing costs.
Financial forecasts for your business plan. As part of your plan you will need to provide a set of financial projections which translate what you have said about your business into numbers. You may also want to include your personal finances as part of the plan at this stage.
Financial planning. Help with Financial Projections Whether you are seeking funding through a bank loan or investor, financial projections will be crucial in showcasing your company’s potential for success. When discussing your financial projections, we will focus on three areas: your need for startup capital, expectations for revenue, and monthly operating.
Inside every entrepreneur’s business plan is a glimpse into the startup’s future, beginning with an executive summary and ending with an appendix. Tucked in the middle of the document, typically in between the market analysis and funding request, are the financial projections.
Financial projections are a set of forecasts you make about your income and expenditure over a three to five year period.
This information helps you plan and adjust your marketing and operational activities so you can continue to run a viable business. A Sample Microbrewery Business Plan Financial Projection. Sources of Income; The major source of income for Green Life Microbrewery Company is the sale of different flavors of our locally brewed beers and in the nearest future we hope to generate revenue from the sale of our franchise all over the United States of America.