From the start, it will be a well-researched restaurant business plan that will be your single greatest asset. It is the greatest key to convince anyone to make a loan, invest capital, lease, or do any type of business with you. Think of the restaurant business plan as an extremely valuable road map for your restaurant business. Long before you open the doors of your new restaurant, having privy to the best restaurant business ideas and restaurant business information will serve to enlighten you on both the possible pitfalls and various opportunities of the new venture.

Restaurant start ups should incorporate in their business plan such elements as company description, industry analysis, products and related services, the target market, information on the competition, sales and strategy operations, planned management and organizational structure, a long term development plan that includes an exit strategy, and financial data projections.

Many restaurateurs omit these crucial stages when buying a restaurant. They are focused on getting the financing to open the restaurant doors to create cash flow as quickly as possible. Doing the hard work, creating a winning image, great food, and the burning will to succeed are not enough. Proper training will be perennial among the restaurant resources that must be in place. The restaurant business plan must also include well-established operating procedures that will be followed on a religious basis. At any point in time, the winners of any venture are the ones that have the best tools to work with.

Knowledge alone is not power! Power is knowledge applied effectively! You will need to be exposed to up-to-date restaurant business ideas, restaurant business information, complete sample plans and more to stay abreast and competitive in the market. And for both parties, it makes the transactions of buying restaurant and selling a restaurant a lot easier.

Many of the challenges that will face the restaurant owner will be in the area of menu and recipes costs, hiring, illness and complaints, foodborne illnesses, sales breakeven points, operations, employee corrective actions, restaurant maintenance, employee and manager reviews, food cost yields, labor scheduling planning, running inventories, employee time-off requests, scheduled restaurant evaluations, and customer service surveys.

An excellent source of information for your overall restaurant business plan can come from business software. Planning experts, consultants, executives, and CPAs use the Business Plan Pro 2004 PREMIER. The package allows the user to combine several businesses plans to see the big picture and track results more efficiently. You will be able to see advanced financials, sales forecasting, and profit and loss statements far more clear. Another great software tool is the “Restaurant Business Plan Software” that incorporates all the tools necessary for the small business owner to succeed.

Perhaps for the restaurant owner, the best software package available might be the QuickPlan 2003 Restaurant Business Plan software package. This is a complete package that is industry-specific, and covers full service, limited service, fast food, bakeries, caterers, nightclubs, franchises, and expansions with that incorporate a definite them.

These software packages can be great tools for setting up a fantastic business plan that will help you to get funded. All of this may at first seem difficult, but you can rest assured that your competition is privy to such information. The sooner you are on board, the sooner your success will be insured. Knowing your business, your market, and your strengths and weaknesses is just smart business. Remember, it is a sound business plan that will make your dreams of restaurant ownership a reality. And, should you decide to sell a restaurant business in the future, you can serve as a valuable font of information for a potential buyer.

The National Restaurant Association is an excellent industry tool that has the latest information on industry trends and research results. Being part of such an organization encourages networking with others to share information and discover new strategies that will make member’s operations more effective. Some of the group studies include internal auditing, human resources, risk & safety issues, marketing, quality assurance, and nutrition. It is a privilege to have access to leaders in the industry that can offer timely insight on the things that matter the most—as well as help you continually fine tune your restaurant business plan.

In fact, any support group that offers assistance and networking is worth looking into. The immediate gain is access to a constantly expanding array of insights, tools, and resources from fellow independent restaurant operators. You are embarking on a time-honored endeavor of business ownership. How you mentally approach the task will weigh heavily on your chances of success. Right actions only have one consequence: Right results.

If you are looking to become a restaurant owner, you will no doubt spend a lot of waking hours contemplating the mysteries of how to buy a restaurant. You can rest assured there are a lot of great opportunities these days to buy a restaurant. However, with franchises, start-ups, and existing restaurants to choose from, it can be a bit overwhelming to say the least. After reviewing all the possibilities, you may have some tough choices to make. There are going to be challenges with any new business venture, and buying a restaurant will tax all of your business skills. The two most pressing concerns will be growing your restaurant and enticing people to continue to eat there. Your best chances of success may be realized if you buy an existing restaurant business or franchise that is up for resale.

If you decide to buy an existing restaurant business, one of the benefits you will immediately realize is the privilege of examining its historical performance. This will allow you to make some very important business decisions. Your strengths can be of great use even if the restaurant was not profitable in the past, and your greatest hope can be to evolve a winning operation.

Existing Restaurants Are Easier to Investigate

You should always do a thorough investigation of any piece of real estate—and especially if you plan to buy a restaurant. This will require taking an up close and personal look at its past activities, current operations, nearby competition, and its future business potential. Restaurant traffic speaks volumes about what you can expect in the future. It is also important to monitor health trends and how they fit into the current status of the restaurant as well as your ownership goals.

An Infrastructure Already In Place

An infrastructure can best be described as the location, equipment, employees, operating systems, and existing supplies. This removes the challenges of starting out at ground zero when buying a restaurant, and will allow you to focus on building the business—which is where your attention should be. A solid infrastructure already in place also allows you to implement new changes more rapidly. With an existing restaurant, there is quicker opening time versus the time needed if it were a new development. The existing customer base of an existing restaurant can carry the business until you are firmly established, and once firmly established, you can then work on bringing in new customers.

The Benefit of Pricing Differences

There may be the perception that to buy an existing restaurant business, it will cost more. This is not usually the case. The odds are actually in your favor of saving money in the long run when buying a restaurant where all the amenities are firmly in place. Even if purchasing the restaurant requires a premium down payment—you at least know up front what you are getting. Usually with a new franchise, there are demographic studies done on drive by traffic, demographics, and potential customer bases. These are all studies that try to determine the restaurant’s potential for success. In reality, this is a near impossible task. It is also good to note that a new location can take up to a year or more to build. All of these challenges are avoided for the most part when buying a resale location.

Negotiating Flexibility

It is not hard to understand why buying a new restaurant will give you a greater margin to negotiate. Owners are usually selling for a specific reason, and if the price is right, chances are you will have few obstacles standing in your way. Remember, everything from the purchase price to the financing package can be negotiable when buying a restaurant.

Seek the Help Professionals

Regardless of the size of the restaurant business, you should consider using the services of both an accountant and lawyer. The first mistake is to think that with a small restaurant business, you can forego the support of professionals. Accountants and lawyers can be a great defense mechanism in ensuring that you are well aware of any risks involved. Remember though, that the role of the lawyer in purchasing a new restaurant is simply to write the legal terms of what you and the seller agreed upon. Ask the right questions if you plan to buy a restaurant that is for resale. Your goal is to find professionals that will assist—and not simply take your money for drawing up the contracts.