Most restaurant owners should already have a solid business plan in mind when opening a new food, drink and entertainment venue. But sometimes even the savviest businesspeople find it difficult to transform great ideas to text. The good news is that by following a few simple steps, you can compose a basic, easy to read business plan for your restaurant and live music venue.
Begin your document with an "Executive Summary." The executive summary is a cover letter presenting your business plan to potential investors or partners. Compose a short greeting introducing yourself and your company, just as you would for an employment resume, and state the nature of your business. Provide a detailed company description and including history, philosophy and mission statement, current company status and all future developmental plans. Include any information regarding investors, loans, capital or past successes in other company owned restaurants. Though it is the first page of your business plan, it is recommended to write it last in order to accurately summarize the content.
Summarize your target consumer market in the "Market Analysis" section. In this section you explain what type of consumers you intend to attract. For instance, if you're located in a predominantly Hispanic area providing ethnic meals and entertainment to locals, or in a metropolitan area featuring acts of all genres to target local patronage and tourism. Discuss the potential amount of customers you may reasonably expect to attract and include a brief summary of current restaurant industry statistics. Investigate the current market trends, consumer habits and needs, restaurant and live music venue trends and statistics to establish an accurate industry analysis, and include this information in this section.
Evaluate your direct competition and compose a "Competitive Analysis." Compile a list of other live music restaurants within a designated proximity of your location. Compare the differences and similarities to your venue. Compose a detailed account of what sets your establishment apart from the others, and how you plan to maintain progressive business among competitors. Clearly outline your competitive strategy for doing so.
Outline all management and daily operational aspects of the restaurant. The "Organization and Management" segment introduces your management team with short summaries of the experience and credentials of each high authority member of your managerial and promotional staff. Such associates may include head chefs, bar managers, event coordinators, general managers, marketing strategists and investors. Include business hours, office and facility information, employee training programs and requirements and inventory, sanitation and quality control procedures. Compose bullet points regarding food preparation, scheduling entertainment, live performances and all operational procedures for every position within the restaurant and entertainment venue.
Include advertisement information in your "Marketing And Sales" category. One of the prime components in a business plan for a live music and entertainment restaurant is your marketing and promotions strategy. Write an intricate list of ways you intend to market each aspect of the company such as music, food items, private parties or major events. Include each avenue of advertisement you intend to take -- like print, media, direct mail, coupons, email marketing or social networking -- with detailed description of each strategy.
Compose a bullet point list of your products, services and events. This functions as your "Service and Product Line" summary. Include information regarding menu items such as portion, price and any applicable theme associated with the menu -- fast food, ethnic dishes, low fat. Add a production subtopic to identify all ingredient and preparation plans. A service section should briefly summarize how your restaurant and live music venue will operate -- such as "Servers will deliver food and drink items to 28 tables in the main dining room" or "Our music venue accommodates up to 200, live performances four nights a week, tickets sold in advance at $20 or $25 at the door."
The "Financials and Funding Request" section is where you provide an overview of your establishment's historical and financial data, and propose the amount of funding required to create or expand your business. Include any applicable cash flow and income statements, collateral information and a detailed explanation of how the funds requested will allocated and utilized. You may also describe your long term development expectations, future projections and exit plan here.
Add an "Appendix" section with detailed information regarding licensing, leases, insurance, permits and legal documents to provide on an as-needed basis.
- Add an "Appendix" section with detailed information regarding licensing, leases, insurance, permits and legal documents to provide on an as-needed basis.
Michelle Renee is a professional trainer and quality assurance consultant in the career, education and customer service industries, with two decades of experience in food/beverage and event coordinating management. Renee has been published by Lumino and Career Flight as well as various food, education and business publications.