How to draw up a business plan for your catering business

While for some people writing a business plan is little more than a burden, for others it is the perfect opportunity to put their ideas for their future business on paper.

It should always be kept in mind when writing the business plan that the reader is unlikely to have any experience in the gastronomy sector. Bankers, investors and other external institutions may not know the meaning of terms such as baste, chic or breakage. This is precisely why the final business plan should be easy for any layperson to understand.

A business plan contains a structured and detailed presentation of your business idea. It outlines the way you would like to implement it in reality. Both the founding process itself and the future structure of the company are discussed. In this way, the strategy needed for implementation of the concept is outlined. The business plan may be necessary to attract potential investors or simply serve as a guideline for working out the operational strategy.

For example, the target group, USP, communication channels and distribution channels are broken down in the Sales & Competition section. With regard to the team and the distribution of tasks, it is important to consider which members, with their respective strengths, take on which roles. This should also address the company values and show what the company stands for. You must also mention which legal status is chosen and why. Why did you choose this location and what are its advantages? Which services does your company provide itself and which have to be organised externally? At the end of the text section, you should also address your risks and demonstrate how they can be mitigated.

The numbers section is particularly important for potential investors. Even though this section is considered by many to be the most difficult, a realistic, well thought-out plan should be drawn up, especially here. Profitability, liquidity, capital requirements and financing should be broken down and presented for the first few years.

Finally, an appendix is added to the business plan containing possible graphics or additions to the text. In addition to an informative CV; product declarations, technical documents, expert opinions or articles of association can also be included in the business plan.

Though the content should be the most important part of your business plan, readers will also be influenced by the design. Therefore, you should make sure that the layout is clear and appealing. Choose a legible font, short paragraphs and an orderly table of contents. Likewise, page numbers should not be missing and an appropriate header and footer with important information, such as the company name, should be provided.

Depending on the scope of the project, the business plan should be no less than 15 and no more than 30 pages. The ideal number of pages is usually 20-25, but you shouldn’t stress too hard about reaching this number. If you need more or less space to put your ideas on paper, you should do it that way. It is also important that you grab the reader’s attention right from the start. A concise introductory sentence and an exciting explanation of your product at the beginning will encourage potential backers to follow your idea with interest.

Business plan structure

There are always different ways of setting up the structure of a business plan. Of course, nothing should be missing. Therefore, the following elements should be in place:

• Summary | 2 to 3 pages

• product/service | 3 to 7 pages

  • Product description, customer benefit, target group, development status

• Founding Team | 2 to 5 pages

  • Founders and competencies, closing of gaps, key people, income, founding members

• Market Analysis | 2 to 5 pages
  • Total market, market segmentation, market potential, competitors

• Marketing | 2 to 6 pages
  • Product, price , communication, sales

• Company | 3 to 6 pages

  • Business system, organization, milestones, legal form, location

• Financing | 3 to 6 pages

  • Financial planning, capital requirements

Even though there are many deals online from companies offering to write your business plan, we don’t recommend it. A business plan should not only bear your own signature, but also serve as the basis for a successful project. That is why it also helps the prospective restaurant owners themselves if the ideas are worked out independently in advance.

Tip 1: Good research and preparatory work

No master has yet fallen from the sky. For this reason, intensive and thorough research is extremely important before you start writing, so in addition to the ideas you already have in your head, collect data, facts and figures that will underpin the success of your business project. By specifying reputable data sources, you can better convince your readers with arguments.

Tip 2: an attractive look

Format is not the only important factor in ensuring a proper structure. Likewise, attention should be paid, for example, to a beautiful cover page with logo, a qualitative type of printing and to clear line spacing and paragraphs. There should also be a feel-good concept in the design that reflects your competence as an owner. Spelling and grammar should therefore be checked too much rather than too little.

Tip 3: Avoid technical mistakes

When it comes to key business figures or technical terms, everything needs to be right. Make sure you know which foreign words you are using and whether your key figures have been calculated realistically. We therefore recommend that you build up your network in the gastronomy sector in advance or, if necessary, consult a management consultancy specialising in the gastronomy sector.

Tip 4: Besides the product, the team of founders is also important

Of course, the product or service is the main focus of what will be sold. Nevertheless, you should also describe the advantages of your product and talk about the benefits for the customer. However, it is also important that you do not forget yourself and your team. After all, your business idea can be as good as it could be but without the skills and qualifications of the team of founders, it won’t work. And this is something you should also communicate to your readers.

Tip 5: Know your market

Intensive market research is essential. Even if your experience is sufficient to be able to say which concept works and where, you should not go into it blindly. You should instead make sure that there are potential customers in the area who will be interested in your product. Another mistake is to say simply that there are no competitors in the direct vicinity. This will not go down well with potential donors. Therefore, try to convey why your concept will be better received than existing restaurants.

Tip 6: Realistic financial planning

Many prospective restaurant owners overestimate their turnover before they start. In reality, however, it often takes several years for a restaurant to expand its clientele to the point where the business is profitable all year round. This can lead to long-term consequences that threaten the existence of the business, because if the liquidity plan has already predicted turnover figures that are too high and the profit is lower than expected, the capital requirement will have also been calculated to be too low. A larger buffer should therefore always be planned for than is actually expected. Because if it runs out, the dream of owning your own restaurant can quickly come to an end.

Tip 7: Demonstrate operational implementation

Of course, it is also crucial how much experience the team of founders has already acquired in the catering industry. To show the reader that there is a well thought-out plan and that it is possible to react to all individual situations in a targeted way, solutions should also be outlined for the day-to-day work. Therefore, it would be advantageous to use SIDES software to provide solutions to issues relating to deliveries, kitchen management or a managerial overview.You should also communicate how you will pave the way efficiently for your future restaurant in the form of a merchandise management system or a personnel management system. Because digitalisation brings security. Only if your business plan seems feasible will potential donors find your idea convincing.