Opening a Restaurant

Restaurants are one of the most frequently started small businesses, yet have one of the highest failure rates. Survivors need a powerful strategic advantage: a sound business plan and feasibility study prior to opening. A new study from the Ohio State University has found the restaurant industry failure rate between 1996 and 1999 to be between 57-61 percent over three years. Don't be a statistic on the wrong side, plan now for success. A business plan precisely defines your business, identifies your goals and serves as your firm's resume. The basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs personnel, suppliers and others about your operations and goals. Despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business to be useful, or that they just don't have enough time. But just as a builder won't begin construction without a blueprint, eager business owners shouldn't rush into new ventures without a business plan. The CD-Rom will cover the following subjects: elements of a business plan, cover sheet, statement of purpose, the business, description of the restaurant, marketing, competition, operating procedures, personnel, business insurance, financial data, loan applications, captialequipment and supply list, balance sheet, breakeven analysis, pro-forma income projections (profit and loss statements), three-year summary, detail by month, first year, detail by quarters, second and third years, assumptions upon which projections were based, pro-forma cash