"The growth of your business is directly related to your own personal growth."~ Jeffrey Summers, Founder|Principal Summers Hospitality Group
I’ve created dozens of financial plans for restaurant clients since 2004. Before telling you how I collaborate closely with you to develop these plans, let me give you a brief overview.
What precisely is a restaurant financial feasibility plan, when would you need one, and why is it so critical to have one?
What it is?
In the most basic of terms it’s a detailed evaluation of whether a planned project is viable after taking into consideration its total costs, projected revenues and operating expenses. If the net revenues cover the costs of the project, and generate an acceptable return, then the project may be considered viable. A financial feasibility study therefore evaluates the project’s potential for success; and is particularly critical if you expect to obtain financing from a lending institution or from potential investors.
When do you need it?
There are generally three scenarios where you would need a financial feasibility plan
- Opening a new restaurant
- Purchasing an existing restaurant
- Operating an existing restaurant (especially if you are considering a significant capital investment)
Why do you need it?
Again there are a few reasons why you would need a financial feasibility plan:
- To evaluate whether the project makes financial sense; will it be profitable?
- To obtain financing from a lending institution or investor(s)
- To evaluate which capital structures (relative inputs of cash, loans and equity investments) make the most sense in terms of business cash flow and the owners & investors desired return on (and of) their investment.
- To give you a better understanding of the financial implications of each of the many assumptions you will need to make when developing the plan (e.g. how does profitability change as revenues, specific expenses or capital structures change)
I work with clients in a variety of ways. In some cases I will create a complete financial plan from scratch. I will always perform this with your close collaboration in order to fully understand the concept, location, market considerations, experience, management, capital structure and many other factors that will impact the assumptions that form the “inputs” to the plan.
In other cases I will provide the client with a financial template (Excel based) to use as a starting point. The client, with my direct support, will make many of the inputs themselves, and we will collaborate as needed, and assist with other inputs, and with the assumptions necessary to create a realistic assessment of capital strucures and associated restaurant performance metrics.
I draw on 40 years of experience in a wide range of restaurant businesses from quick to full service establishments.
My plans include detailed sections as:
General Company Information
Projected Sources & Uses of Funds
Project Capital Budget Detail
Hourly Labor Cost Projection
Opening Balance Sheet
Detailed P&L Projections
Summary P&L Projections
5 Year P&L and Equity Return Rates (for both owners and investors)
Break Even Worksheet
Break Even P&L Summary
What I Do To Help You Build A Better Business
Why You Should Hire Me
Results My Client-Partners Have Achieved With My Help
Increased Sales & Profits
We’ve documented that businesses whose employees are engaged (well matched to their jobs and enjoying what they do) lead to increases in the most critical top & bottom-line metrics: sales and profits.
Business & Professional Growth
Employees who feel valued will perform better, stay longer and contribute more to the business’s ability to drive top line sales and bottom line profits.
Here Are 5 Ways I Can Help You Start Growing Your Business Today:
1. Register for one of my ThinkWorx™ workshops. Learn more about those here.
2. Join my BizWorx™ Coaching program and start growing your business the very day you start. I help business leaders rapidly grow their businesses with sustainability. If this fast growth interests you, call me at 855-744-4677 and talk to me about your opportunity at no charge.
3. Engage me in a GrowthWorx™ Consulting Project and finally set your business on the road to rapid and sustainable growth.
4. Conduct an Onsite Review in order to create a blueprint for growing your business in the coming year.
5. Have me Facilitate A Strategy Session for your leadership team. Most of our clients now do this every 6 months and it has provided the needed focus and accountability necessary to achieve sustainable growth.
5b. Have questions? Contact me to discuss your opportunity with no obligation to you for the first conversation.