A business plan sets out what a venue will be, who it's for and how it will make money. It usually covers the concept, the target market, local competition, location, the team and their experience, operations, marketing and, crucially, the financials: start-up costs, funding, sales forecasts, gross profit, labour, rent and other overheads, cash flow and break-even point. Lenders, investors and landlords will expect one, and some grant or loan schemes require it. Realistic forecasts matter more than optimistic ones: new venues often take months to build trade, so a plan should model slower starts, seasonality and wage rises.
Including risks and how you'll manage them shows maturity. The process itself is valuable, because writing the numbers down exposes weaknesses before money is spent. A business plan shouldn't sit in a drawer after opening. Revisiting it regularly, comparing actual results with forecasts and adjusting is how operators stay in control.
What we ask on the show
- What did your first business plan get completely wrong?
- How optimistic is too optimistic for opening forecasts?
- Who should every new owner show their plan to?
- Do you still look at your plan now you're open?