Why a business plan is crucial for hospitality start-ups

Posted on 08 april 2018

The early days for a start-up business are tough. The good news is that with the right amount of forward planning, you can create a safety net that will catch you when times get tough.

This safety net comes in the form of a business plan. With considerations for everything from your forecasted budget to your hiring timeline, it will keep you in line and on track in growing your business from the ground up.

 

Why a business plan is your priority

In the early days of a new hospitality business, it can be exhausting work - long days, information overload, and the constant stress of filling seats in your venue. It can feel more productive to work on your logo than think about financial projections. But that’s the beauty of a business plan: It forces you to stop and think deeply about your business.

It gives you a process to sharpen your vision, set goals and figure out if you can turn your idea into a reality. More importantly, a business plan serves as a critical tool for securing funding and attracting potential investors.

Image credit: @bloomsocial

Creating the dream, then making it happen

A business plan is the blueprint for your business. If you wanted to build a house, you wouldn’t just start hammering boards up without an idea of what it was going to look like. The same goes for a business, and yet so many entrepreneurs throw themselves into building a business without any formal planning.

Taking the time to set out, in detail, where you want your business to be in one month, six months, one years’ time will give you direction. It will shed light on any potential pain points you may not have anticipated, as well as reveal opportunities for you to focus on.

Image credit: @buujoo

Where to get started

If all of this is sounding like a lot of work, don’t worry – your business plan doesn’t have to be complicated. There are no requirements for format or content, and it’s best to just get started. So, put your business logo designs on hold for a moment and start working on a plan that’ll help you build a solid and stable business.

Here are four ways you can get started when it comes to putting together your own personal business plan.

#1: Figure out how you’ll use your plan - What do you hope to accomplish with your business plan? Who’ll be reading it?

#2: Know what you really need to get started - Take a hard look at your projections and be realistic about how long it could take to break even

#3: Test your big idea to see if it’s viable - What problems are you solving? Who are your competitors? What’s your target market and how will you reach it?

#4: Set goals for the business and yourself - What you want to get out of your business and what success looks like for you.

Answering these questions will help to focus your mind on what’s next for the business. The early days of your start-up business are hard enough, so we’re here to help where we can. With over thirty years in business, we have the tips to help you to grow.