A strong business plan is key to securing the right lease for your hospitality business. Whether it’s a restaurant, pub, or café, a business plan shows landlords you can manage operations, understand the market’s needs, and have stable finances.
A well-written plan helps guide your business’s growth and shows landlords you are prepared and committed to your venture. This guide outlines the essential elements to include, helping you present a clear and convincing pathway to secure the lease you need:
1. The Vision: Proposed Trading
Your business’s vision is the cornerstone of your plan. You should be able to describe your concept clearly, explaining the type of business you intend to run and how you will create a unique, attractive environment for customers. Is your pub going to be a local community hub or a trendy destination spot? Will you focus on quality food, specialty drinks, or a combination of both? Define your style. Will it be a gastropub, a casual dining venue, or a fine-dining experience?
Key details to include:
- Atmosphere and Customer Experience: Outline the vibe and aesthetic of the space. Think about how the interior, service style, and menu will create a memorable experience for your customers.
- Differentiation: Explain what sets you apart from other businesses in the area. How will your venue attract customers and keep them coming back?
- Location Fit: How does your trading style complement the surrounding area? This helps landlords understand how well your concept fits with the neighbourhood and existing demand.
2. Market Overview
An effective market overview will prove that you understand the local demographics and customer base. Landlords want to know that you’re targeting the right audience and that there is sufficient demand for your offering. This section should include detailed data on the local community’s population, spending habits, and what they’re looking for in a hospitality venue.
Key details to include:
- Demographics: Include data such as age groups, average income levels, and customer preferences. For example, “The local population of 15,000 includes a high proportion of professionals aged 25-40 who are likely to enjoy mid-range dining and craft beers.”
- Foot Traffic: Include figures on foot traffic or nearby attractions that can bring customers to your location. If you’re near a sports venue, for instance, this could be a great selling point.
3. Financial Plan
A solid financial plan is essential for any business, and it is a key part of what landlords are looking for when reviewing a lease proposal. This section should include detailed projections for the first few years of your business, including revenue forecasts, operating costs, and your expected breakeven point. It’s best to partner with a trade accountant with this section.
Key details to include:
- Revenue and Expense Projections: Include projections for the first five years of business. Break down revenue streams (e.g., food, drink, events) and outline operating costs such as rent, utilities, staff wages, and marketing.
- Startup Costs: Provide a detailed breakdown of startup expenses, including any leasehold improvements, renovation costs, equipment, and inventory.
- Profitability and Cash Flow: Explain when you expect the business to become profitable and provide monthly cash flow projections for the first two years. This demonstrates to landlords that you have a realistic understanding of the financial demands of the business.
- Contingency Plans: It’s important to show that you’ve thought ahead. Identify any potential financial challenges and explain how you plan to handle them.
4. Competitor Analysis
A thorough competitor analysis will show that you understand the competitive landscape and that your business has a clear strategy for standing out. Research nearby businesses offering similar services and explain how your business will differentiate itself.
Key details to include:
- Competitor Profiles: Select 3–5 key competitors and provide an overview of their offerings, strengths, and weaknesses. This will help landlords see how you compare to other businesses in the area.
- Market Gaps: Identify areas where competitors are lacking or underserved. For example, if no one in the area offers a great selection of craft beers or vegan options, this could be your niche.
- Unique Selling Proposition: Demonstrate how your business will fill these gaps, providing a unique experience that will attract customers and drive sales.
5. SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats
A SWOT analysis is an essential tool for understanding your position in the market and demonstrating strategic thinking. By evaluating your strengths, weaknesses, opportunities, and threats, you can present a realistic picture of your business and your ability to overcome challenges.
Key details to include:
- Strengths: Identify what gives your business an edge.
- Weaknesses: Acknowledge areas where you may need improvement.
- Opportunities: Point out the growth opportunities.
- Threats: Address potential risks.
To succeed in a competitive market, businesses must focus on maintaining their strengths, overcoming weaknesses, capitalising on opportunities, and proactively preparing for potential threats. This balanced approach allows you to prepare for long-term growth.
6. Strategic Plan
Your strategic plan outlines your goals and the steps you’ll take to achieve them. This is where you show that you have a clear roadmap for the success and growth of your business. Break your strategy into short-term and long-term goals and explain how each one will contribute to profitability.
Key details to include:
- Short-Term Goals: These could include completing any renovations, hosting a grand opening event, or launching marketing campaigns. Make sure these are SMART (Specific, Measurable, Actionable, Relevant, and Time-bound).
- Long-Term Goals: Long-term goals might include building a loyal customer base, expanding into catering, or becoming a go-to venue for community events.
7. Operations & Recruitment
This section should address how you’ll manage the day-to-day operations of your business. Landlords want to know that you can run a smooth and profitable operation, so be sure to explain your approach to staffing, training, and customer service.
Key details to include:
- Staffing Plans: Outline your hiring strategy, including the number of staff needed and the key roles. Consider how many front-of-house and back-of-house employees you’ll need based on the size of your venue and anticipated traffic. Will you employ on hourly contracts to manage seasonal fluctuations more easily or adopt a mix of full-time and part-time roles to foster team loyalty? Additionally, consider the age groups available for hiring to prepare for challenges like the national living wage for employees over 21.
- Recruitment and Retention: Explain how you’ll recruit skilled employees and retain them. Include your plans for training, career development, and offering incentives like bonuses or staff discounts.
- Operational Workflow: Provide details about how your team will work together to ensure smooth service. For example, describe your scheduling process, inventory management, and quality control procedures.
8. Risk Analysis & Management
No business is without risk, and landlords want to see that you’ve thought about the potential challenges and have strategies in place to mitigate them. In this section, outline the key risks you might face and how you’ll address them.
Key details to include:
- Specific Risks: Identify potential risks such as changing customer trends or seasonal slowdowns.
- Mitigation Plans: For each risk, outline a strategy to minimise its impact. For example, “To mitigate seasonal slowdowns, we will introduce winter-themed events and adjust our opening hours during quieter months.”
Turn Your Vision Into Reality
To secure the lease you need and launch your business successfully, it’s important to craft a compelling business plan. Clearly communicate your vision, market insights, financial readiness, and strategic approach. A thorough, realistic plan will build confidence with landlords and increase your chances of getting the lease. The more detailed and focused your plan, the better positioned you’ll be to start your business on the right foot.
Make the right first impression and increase your chances of success. Check out our 5-day business plan services and see how we can build your winning plan together: bit.ly/carrollbusinessplan
