The smart way of starting a business of any kind includes thorough planning that will consist of expectations and actual actions.


Realistically, one’s inspiration and excitement are not enough to carry a business through success. It takes more than a passion for cooking to ensure that a restaurant or cafe will get enough guests to reach profitability. Let alone sustain it. 

This is where a detailed business plan should step in. 

Yes, you already have a theme in mind.

Yes, you have already scoped your target location.

You have done enough research on your competitors in the area.

You think you have enough capital to fund your venture.

There is no one more eager to do this but you.

Do you still need a business plan?

The answer is a resounding YES!

A business plan will guide you through each stage of developing and managing your coffee shop and serve as a road map for structure, run, and grow your new business. It can be tempting to skip creating one, but its benefit is less about the final document and more about the process. It helps you understand your local market and take a close look at the numbers you need to make the business successful. 

What makes a business plan?

Typically it is an eight section structure, but you can alter it to suit the specific needs of your cafe. What’s important is that you create a plan that will keep you on track, organize your research to prove your value to potential investors. 

Your business plan should include:


1. An Executive Summary 


The executive summary should summarize your company’s value proposition – what your business stands for and how it will stand out. It should spell out precisely what you’d like to achieve, both in the short term and over a long period.

It should include:

  • A mission statement
  • The services or products you offered with a brief description
  • Structure of ownership
  • A financial breakdown on where your business in three to five years

If you’re looking for funding support, this is the section where you explain why you need funds. You must demonstrate how the loan will grow your business. 

This summary is positioned at the beginning of the plan. You can easily capture the attention of those who will read it and provide information that will give a further cause of interest. However, while this section leads your business plan, write it last as a summary of the subsequent sections of your business plan. 


2. Company Description


Details include:

  • Registered name
  • Names of key people in the business
  • Address of any physical locations
  • History of the company
  • Nature of the business 
  • Details about services that it offers or will offer


3. Business and Management Structure


This is the section where you list your business’s legal structure.

  • Information whether sole proprietorship, partnership or corporation
  • Name of other owners, managers and key employees
  • If there are other owners, include the scope of each owner’s involvement in the per cent 


4. Products and Services


This is the section where you write in detail all the services or products you offer (or intend to offer).

  • A description of how your service or product works
  • The pricing for your service or product 
  • Your typical customers 
  • Your sales strategy
  • Your distribution strategy
  • Any trademarks or patents, whether current or pending 
  • Your service or product advantage over your market competitors


5. Marketing and Sales Plan


This is the section where you write about your marketing strategy and your steps to execute it. Your marketing strategy and sales plan should have a two-part approach:

  1. Positioning – How are you going to position your products to customers? What makes your goods or services unique or valuable?
  2. Promotion – Create a promotional plan that will get your brand in front of the eyes and ears of customers.

Discuss how you intend to persuade customers to support your business, promote repeat business, and develop customer loyalty here in detail. Since this is the section for marketing, highlight your business’s strengths and focus on what sets your business apart from your market competition.


6. Financial Analysis


This provides the reader with a glimpse of the current state of your business finances. You’ll likely have to use research and estimations to complete this section if you’re starting your cafe.

Information should include:

  • Income 
  • Profit-and-loss statements
  • Debts and assets listed on a balance sheet
  • A statement of cash flow 
  • Net profit margin or the percentage of revenue you keep as net income
  • Accounts receivable turnover ratio which is a measure of how frequently you collect on receivables per year
  • Your ability to repay debts


7. Financial Projections


If you seek investors or financing, consider this section as the essential part. This is where you outline how your business will reap enough profit to pay back the loan. 

Your goal is to demonstrate that your business can generate enough cash flow to manage the regular debt payments.

Loan officers may appreciate that you have thoughtfully considered possible risks and that you have done your part to mitigate any of those risks to the best you can. 

Write here your business’s monthly or quarterly sales, expenses and profit estimates over at least three years. Include also future numbers assuming you’ve obtained a new loan. 

Make sure that you thoroughly analyze your previous financial statements prior to making projections.


8. Appendix


This section is where you list any other additional information:

  • Resumes of key employees
  • Equipment leases
  • Licenses
  • Patents
  • Bank statements
  • Personal and business credit history
  • Permits
  • Receipts
  • Contracts


In Summary:

Regardless of what type of business you want to start, creating a business plan is key to launching any successful endeavour. It should clearly define your business’ goals and contain a business strategy that details how you plan to achieve them. A business plan will guide you through each stage of developing and managing your coffee shop and serve as a road map for structure, run, and grow your new business.


If you want to run a 5-Star reviewed restaurant or cafe, Anytime Chefs can help you create the cafe of your dreams! Book a free 20-minute discovery call with one of our chef consultants and start getting 5-star reviews for your cafe now.


That’s it for this week.
As always, Professional Chefs on Call at Anytime!

Ciao for now,


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