To fully understand the economics of the business and identify potential returns before making substantial expenditures we recommend the development of a comprehensive business plan. Regardless of whether you are in need of financing, or a seasoned veteran in need of a more aggressive vision, SHG can work with you to create the hospitality business plan that will model your business and document your strategy.
Business plans serve two primary purposes:
- clarifying your value proposition and revenue model;
- convincing others that your business is sound enough to justify an investment or a loan.
The Hospitality business has one of the highest rates of bankruptcy of any industry in today’s economy. This is coupled with one of the lowest profit margins available to the entrepreneur. Operators who fail are usually undercapitalized, lack relevant experience in the industry or don’t take the time to properly examine the business which they are about to get into. Many entrepreneurs who wish to be in the hospitality business turn to franchising as an option. Under the auspices of a franchisor the entrepreneur’s lack of relevant experience can be minimized if the franchisor has suitable operations systems, standard recipes and marketing techniques, etc…
A business plan should consist of nine phases:
- Concept Overview
- Economic Overview
- Site Analysis
- Competitive Analysis
- Marketing Plan
- Capital Expenditures
- Financial Projections
- Proposed Menus
- Management Biographies
However, franchisees and franchisors who have not conducted adequate planning and preparation have been known to go bankrupt or work on a marginal basis as well.
The only way an entrepreneur, whether they are building and creating their own business or buying a franchise unit, can clearly understand what lies ahead financially is to conduct a detailed business plan. If you have the fortitude to develop a business plan and to honestly interpret the outcomes, you will have a far better understanding of your opportunity to succeed as an independent operator or franchisee. In addition, if you can successfully get through the grueling task of developing a business plan, you will likely succeed.
HERE ARE FIVE WAYS I CAN HELP YOU START GROWING YOUR BUSINESS TODAY
1. 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 +1 817-797-2929 and talk to me about your opportunity at no charge.
2. Engage me in a GrowthWorx™ Consulting Project and finally set your business on the road to rapid and sustainable growth.
3. Conduct an Onsite Review in order to create a blueprint for growing your business in the coming year.
4. 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.
5. Have questions? Let’s Talk! Contact me to discuss your opportunity with no obligation to you for the first conversation.