Chinese Restaurant Business Plans - Why You Need One

When you start a business you have to know what you are getting yourself into. The restaurant business can throw many surprises at new owners so you must do your research and know exactly what to expect. Many owners of Chinese restaurants that failed within the first year will blame their failure on a lack of planning. If you spend some time researching and writing a business plan for your Chinese restaurant then you will be more likely to see your business succeed.

There are many reasons why it makes sense to prepare a business plan prior to opening a restaurant. Some benefits will seem obvious to you at first but others may not yet have occurred to you.

In the following article we highlight some of the reasons why you need to put together a restaurant business plan before you take the plunge and open up the dim sum or Beijing cuisine restaurant that you have been dreaming about.

Avoid Mistakes

When you start a restaurant you will have to make a lot of different decisions. Some of these decisions can be difficult or expensive to reverse at a late date so you must be sure that you make the correct choices the first time around. By doing the right kind of research and planning you will be able to make informed decisions instead of just guessing.

Top Elements Of Effective Small Business Plans

Most first-time entrepreneurs always find it hard to put their ideas into life. While they know that having small business plans is the best start, lack of knowledge in writing them just won't allow them to go any further. Because of this, some great product and service ideas remain to be unfinished canvases in the heads of their inventors.

If you are an entrepreneur who is serious about getting things done on your end, you can always hire a specialist to help you with your venture. However, it is ideal that you know how to do things yourself so that you can have direct control over your business.

Outlined in this article are some points which could help you in drafting an effective business plan. Feel free to read on the following.

Include Demographics

Who is your target market? Know everything about them like their needs and wants. It would also help if you have an idea about other details like the nature of their work, income bracket and others. These people are the ones who will bring in the money to your company therefore you must know how to keep them satisfied.

Clear Action Plan

This should begin with a lay-out of the techniques you will utilize to meet your client's needs. You surely cannot do everything on your own and so you will need employees who will carry out the techniques that you have thought of. Excellent small business plans identify each employee and the tasks they are expected to carry out. Should something go wrong, it would be easy for you to address the issue.

Writing Business Plans That Speak to Investors

There are an inordinate number of websites offering free templates for writing a business plan. However they fail to explain to the entrepreneur the intent, or style the business plan should adopt. Structure is important, but the key to writing any effective communication is to never forget your reader.

Copywriters learn early in their careers never to alienate the reader. The reader is king. The reader's needs and wants are more important than those of the writer. The writer is only a conduit.

I knew some writers who were so fanatical about the reader, they kept a photo representation on their desk during a writing assignment - just so they didn't forget who they were speaking to.

If you are using your business plan to raise capital, your reader is likely to be an investor. An investor is businessperson, who reads dozens of business plans each week, from entrepreneurs who all believe they are the next Zuckerberg.

So think about how you are going to keep their attention. Investors are big picture people. You have to help them imagine making thirty times their investment, by striking the right notes.

Answer these three questions early and you can hook them to keep reading.

Business Plans for Getting a Business Loan

Unlike a business plan that is specific for an investor, a document specific for a lending institution will be somewhat different. This is due to the fact that you are going to need to focus much more heavily on your credit, the tangible assets to be purchased with loan funds, and how the business will be able to repay its obligations over a specific period of time. When you are writing a business plan in order to obtain a business loan then you are going to want to immediately outline the anticipated terms of your credit facility. This includes discussing the total loan amount, anticipated interest rate, and the term of the credit. This should be placed directly within your executive summary as well as the financial section of the business prospectus.

Your business plan should consist over several components that focus on how you intends to repay your loan. A well developed profit and loss statement as well as a cash flow analysis will allow a banker or a financial institution to understand how the business will support this debt obligation. Within your financial section, you should create and include a full loan amortization schedule that will showcase on a month to month basis the ongoing interest payments, repayments of principal, and total outstanding loan balance. If you do not know how to properly develop this aspect of your business plan then you should have your certified public accountant produce this section of your document. Additionally, there are many online programs that can calculate a business loan amortization table for you.

One of the very important aspects that you need to provide a focus on, in regards to your business plan, is to showcase the tangible assets that will be acquired. You should heavily discuss how these assets can be used as collateral for your loan. It should be noted that you may be required to provide a deprecation schedule. This is important because, over time, most assets lose their value. In the case that you are acquiring real property then you are going to want to showcase how this property may appreciate over the life of the business loan. You may need to have a property appraiser assist you with this matter as banks and financial institutions have become very stringent regarding financing that is specific for tangible asset and property purchases. We are going to continue to provide you with a tremendous amount of information regarding these matters though our series of articles dedicated to business planning.