II. Project development and design
A. Project formulation
CONCEPT PAPER ON STARTING UP A
5/f, Atrium Building, Makati Ave.,
Makati City, Philippines
Starting up a restaurant is a lot like having children. Everyone tells you how much work and dedication it will be, but you are still so excited. The excitement may cause something in the back of your head tells you it might just be a lot of fun and not so much work. Don't believe it. Running a restaurant entails wearing a lot of hats and putting in a lot of time, but it can all be worth it if you do your research and a well thought out, organized plan is set in place. After deciding that you are ready to own a restaurant, a concept needs to be developed. Keep in mind what type of restaurant (family, fast food, upscale, etc.) you want to own. Do you want to buy into a franchise, or create your own establishment? These are questions that need to have clear and concise answers so that when you enter into writing the business plan, you have it done. Preparing the business plan is one of the most crucial parts of starting a restaurant. Not only does it help to secure funding, but it organizes information like target market, market demographics, competition studies, and financial projection. The business plan holds all of the necessary information in one clean document. Secure financing for the restaurant. Make sure you have enough money for the location, design and furnishing the interior, exterior signage, initial advertising cost, and maybe a little cushion in case of a slow start. Get all of your professionals in place. Hire a lawyer and accountant to take care of their respective matters while you are preparing for opening day. Prior to the grand opening many things need to get done:
o Hire a good staff
o Furnish the restaurant
o Create a menu
o Contact local vendors and negotiate pricing
o Begin advertising
A good way to create buzz about the restaurant is to have a pre-grand opening party. Send out invites to friends, family and local business people to come to the venue and experience the restaurant before anybody else does. Allow each person to bring a guest to increase exposure. Serve a limited menu, with only the best items available.
Introduce yourself and your staff and then run the event as though it is opening day. Make comment cards available so the guests can give some suggestions for you to look at before the doors open to the public. Above all, prepare for spending a lot of time with the business. No business can survive if the owner does not have a hand in it. It will be a lot of work, but since you have already decided it is work you'll love then it will all be worth it. B. Preparation of full blown project feasibility study
A restaurant business plan is an opportunity to bring your concept to life on paper. It provides an outlet to express your passion for your idea and sell others on it, too. A business plan has two primary purposes � to attract potential investors and provide a guideline for opening and operating your restaurant.
Restaurant business plans can be as simple as an idea written on the back of a paper napkin. However, if you are going to present your business plan to potential investors, you want to supply them with as much information about your restaurant concept as possible.
Essentially, a business plan should tell the story of your restaurant and include several key components: an executive summary, a description of your business, market strategies, a competitive analysis, development plans, operations and management plans and financial estimates.
Restaurant Business Plan: Executive Summary
An executive summary is a concise presentation of your idea. It should bring to life your passion for your restaurant concept and highlight your concept�s potential for success in the marketplace.
Oftentimes, an executive summary will be the document...
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