Finance companies and banks demand a written business plan before putting up financial support to a new business. All medium and large companies inevitably prepare a financial budget for the coming year. That should tell everyone that not producing a written business plan is the first mistake everyone starting a new business might make.

Starting a new business without a proper business plan is akin to taking a blind walk in the dark without no road or map to follow. It should not come as a surprise to learn that the majority of new start ups consequently fail within the first two years dashing the hopes and dreams of many budding entrepreneurs.

The benefits to an entrepreneur in producing a detailed comprehensive business plan when some-one is considering starting a new business lie strongly in the thought process that goes into producing that plan rather than the ultimate plan itself. New start ups should regard a business plan as a road map to get the show on the road.

A properly thought out and written business plan for a small business should contain the details of how the small business is going to get started. For more help visit to: www.info- product-profit-revealed.com. A typical plan might include a short synopsis of the new business with sections on sales and marketing, operations or production, purchasing, personnel plus a financial section evaluating those plans and putting real numbers on the written text.

The short synopsis should briefly describe the main business and mention each of the main ingredients contained within the plan to attain the objectives. The rest of the business plan should support that synopsis and should be factual rather than a sales document.

Sales and marketing should include an analysis of the potential and forecast sales, competition and how the sales will be achieved. Identify the sales channels that will produce the sales and why they will produce the sales. The sales section should specifically state the volume of sales of each product over at least the first year and the price at which each of those products will be sold and note the sensitivity of all items to unexpected events.

The operations and production section is dependent upon the type of business and will be variable depending on whether the new start up business was providing services, retailing or manufacturing. The production section is basically a detailed picture of the vehicle that will be used to generate the products to be sold.

Purchasing would include an analysis of how the products to be sold would be sourced. Volumes should be stated and sources of supply specifically identified with a real purchase cost of all major items specified not guessed.

Personnel would include the names of the people involved with brief details of their knowledge, qualifications and previous experience. For more help visit to: www.instant-cd-products.com. The personnel section would also include details of people yet to be recruited if the work to be performed is going to be critical to the new business.

The financial section of a business plan should contained a forecast profit and loss account preferably each month for the first year at least with perhaps a summary of the second year. In addition to the profit and loss account a cash flow statement taking into account capital introduced and stock levels should also be produced.

The sales and production or purchasing numbers including volume and prices contained within the report should be reflected in the financial report. Each major critical assumption within the plan should be subjected to a financial sensitivity analysis that takes into account all potential risks to volume and price levels.

The process of preparing a detailed comprehensive business plan that has been properly researched has significant benefits in itself. If the business has been researched and thought through before the new business starts there is a much higher can it will succeed and suffer fewer negative surprises once the real work of generating sales and profit begins.

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From the start, it will be a well-researched restaurant business plan that will be your single greatest asset. It is the greatest key to convince anyone to make a loan, invest capital, lease, or do any type of business with you. Think of the restaurant business plan as an extremely valuable road map for your restaurant business. Long before you open the doors of your new restaurant, having privy to the best restaurant business ideas and restaurant business information will serve to enlighten you on both the possible pitfalls and various opportunities of the new venture.

Restaurant start ups should incorporate in their business plan such elements as company description, industry analysis, products and related services, the target market, information on the competition, sales and strategy operations, planned management and organizational structure, a long term development plan that includes an exit strategy, and financial data projections.

Many restaurateurs omit these crucial stages when buying a restaurant. They are focused on getting the financing to open the restaurant doors to create cash flow as quickly as possible. Doing the hard work, creating a winning image, great food, and the burning will to succeed are not enough. Proper training will be perennial among the restaurant resources that must be in place. The restaurant business plan must also include well-established operating procedures that will be followed on a religious basis. At any point in time, the winners of any venture are the ones that have the best tools to work with.

Knowledge alone is not power! Power is knowledge applied effectively! You will need to be exposed to up-to-date restaurant business ideas, restaurant business information, complete sample plans and more to stay abreast and competitive in the market. And for both parties, it makes the transactions of buying restaurant and selling a restaurant a lot easier.

Many of the challenges that will face the restaurant owner will be in the area of menu and recipes costs, hiring, illness and complaints, foodborne illnesses, sales breakeven points, operations, employee corrective actions, restaurant maintenance, employee and manager reviews, food cost yields, labor scheduling planning, running inventories, employee time-off requests, scheduled restaurant evaluations, and customer service surveys.

An excellent source of information for your overall restaurant business plan can come from business software. Planning experts, consultants, executives, and CPAs use the Business Plan Pro 2004 PREMIER. The package allows the user to combine several businesses plans to see the big picture and track results more efficiently. You will be able to see advanced financials, sales forecasting, and profit and loss statements far more clear. Another great software tool is the “Restaurant Business Plan Software” that incorporates all the tools necessary for the small business owner to succeed.

Perhaps for the restaurant owner, the best software package available might be the QuickPlan 2003 Restaurant Business Plan software package. This is a complete package that is industry-specific, and covers full service, limited service, fast food, bakeries, caterers, nightclubs, franchises, and expansions with that incorporate a definite them.

These software packages can be great tools for setting up a fantastic business plan that will help you to get funded. All of this may at first seem difficult, but you can rest assured that your competition is privy to such information. The sooner you are on board, the sooner your success will be insured. Knowing your business, your market, and your strengths and weaknesses is just smart business. Remember, it is a sound business plan that will make your dreams of restaurant ownership a reality. And, should you decide to sell a restaurant business in the future, you can serve as a valuable font of information for a potential buyer.

The National Restaurant Association is an excellent industry tool that has the latest information on industry trends and research results. Being part of such an organization encourages networking with others to share information and discover new strategies that will make member’s operations more effective. Some of the group studies include internal auditing, human resources, risk & safety issues, marketing, quality assurance, and nutrition. It is a privilege to have access to leaders in the industry that can offer timely insight on the things that matter the most—as well as help you continually fine tune your restaurant business plan.

In fact, any support group that offers assistance and networking is worth looking into. The immediate gain is access to a constantly expanding array of insights, tools, and resources from fellow independent restaurant operators. You are embarking on a time-honored endeavor of business ownership. How you mentally approach the task will weigh heavily on your chances of success. Right actions only have one consequence: Right results.

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Finance companies and banks demand a written business plan before putting up financial support to a new business. All medium and large companies inevitably prepare a financial budget for the coming year. That should tell everyone that not producing a written business plan is the first mistake everyone starting a new business might make.

Starting a new business without a proper business plan is akin to taking a blind walk in the dark without no road or map to follow. It should not come as a surprise to learn that the majority of new start ups consequently fail within the first two years dashing the hopes and dreams of many budding entrepreneurs.

The benefits to an entrepreneur in producing a detailed comprehensive business plan when some-one is considering starting a new business lie strongly in the thought process that goes into producing that plan rather than the ultimate plan itself. New start ups should regard a business plan as a road map to get the show on the road.

A properly thought out and written business plan for a small business should contain the details of how the small business is going to get started. A typical plan might include a short synopsis of the new business with sections on sales and marketing, operations or production, purchasing, personnel plus a financial section evaluating those plans and putting real numbers on the written text.

The short synopsis should briefly describe the main business and mention each of the main ingredients contained within the plan to attain the objectives. The rest of the business plan should support that synopsis and should be factual rather than a sales document.

Sales and marketing should include an analysis of the potential and forecast sales, competition and how the sales will be achieved. Identify the sales channels that will produce the sales and why they will produce the sales. The sales section should specifically state the volume of sales of each product over at least the first year and the price at which each of those products will be sold and note the sensitivity of all items to unexpected events.

The operations and production section is dependent upon the type of business and will be variable depending on whether the new start up business was providing services, retailing or manufacturing. The production section is basically a detailed picture of the vehicle that will be used to generate the products to be sold.

Purchasing would include an analysis of how the products to be sold would be sourced. Volumes should be stated and sources of supply specifically identified with a real purchase cost of all major items specified not guessed.

Personnel would include the names of the people involved with brief details of their knowledge, qualifications and previous experience. The personnel section would also include details of people yet to be recruited if the work to be performed is going to be critical to the new business.

The financial section of a business plan should contained a forecast profit and loss account preferably each month for the first year at least with perhaps a summary of the second year. In addition to the profit and loss account a cash flow statement taking into account capital introduced and stock levels should also be produced.

The sales and production or purchasing numbers including volume and prices contained within the report should be reflected in the financial report. Each major critical assumption within the plan should be subjected to a financial sensitivity analysis that takes into account all potential risks to volume and price levels.

The process of preparing a detailed comprehensive business plan that has been properly researched has significant benefits in itself. If the business has been researched and thought through before the new business starts there is a much higher can it will succeed and suffer fewer negative surprises once the real work of generating sales and profit begins.

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First, if you’re only reading this article because you want to find a good format for writing a business plan, then you will find some good formats, templates and software at Intuit’s website – you know, the same people who make QuickBooks, Quicken and TurboTax. Well, if you go to the Intuit website, then you will find its new business plan service under the name of “JumpUp.” And even better, some of the templates and software are free. But, I have a feeling you might have a few more questions about business plans, so here are a few more pointers.

Second, something is more important, however, than just the writing a of business plan. The most important thing is that you decide WHERE you want your business to go and HOW you want to get there. Your decision about the where and how of your business goal is more important than the writing of it.

Third, the next most important thing is your specific use of the plan itself. If your business plan’s purpose is to serve as a guiding light to you and your key people, then it will be in that type of format. If its purpose is to create measurable goals, help evaluate progress towards those goals, and guide decision-making, then the plan might take a different shape. And, if your business plan’s purpose is to attract investors or to obtain a loan, then it might be in a different format altogether.

Fourth, and a special note for start-ups, if the business plan is for a start-up business and is for the last 2 purposes (measurable-goals/decision-making or investors/lenders), then I recommend a specialized process. First, write a business plan as if you were writing it to be your guiding light. I have worked with many clients with a new business who should not be writing an investor/loan business plan just when they are starting up the company. Why? Because a business plan should not be a something that you create just so that it sounds good to other people (or yourself). The plan should really be an actual reflection of the desired destination and the means anticipated to get there. So, for the new business owner, these insights and realizations need some time to evolve. Sure, a new business owner starts out with goals, dreams and ambitions. But, it takes time for these goals, dreams and ambitions to mature in the marketplace. That is why it is important early on to write the business plan, but do it with the “guiding light” purpose.

When DO you take the next step and write the business plan with the potential investor or lender in mind?

When the heart and mind agree on the destination and the means of getting there. Then, and only then, is it the right time to transform the “guiding light” plan to a business plan for measurable-goals/decision-making or investors/lenders.

Fifth, once the mind and heart agree, then it is essential to commit the business plan to paper because without a clear destination, there is no basis upon which to make decisions. Decisions should be made with the destination in mind. Writing down how to reach the destination establishes mile-markers that will measure progress. Without some way to measure progress, we are only left with our feelings – and feelings change from day to day or moment to moment. Milestones help us to make needed adjustments while the vision of our destinations keeps us on track.

To sum up, a business plan is important. The pre-work, however, is even more important. The follow-up, which measures our success against the plan, is what gives the plan its purpose.

Copyright 2007, Chuck Markham, MA, LAC (“Business Coach Chuck”)

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