The hospitality industry accounts for a major percentage of our economic and employment opportunities, but it can also be volatile. It has high rates of bankruptcy of any industry, coupled with low profit margins for the owner. But while some businesses fail, others succeed, from small, family-owned restaurants to large hotel chains.

What separates the success stories from the rest? Those that fail have typically failed to plan. In other words, they have gotten into the business with a dream, but didn’t back it up with a solid business plan.

A business plan is an entrepreneur’s primary tool in defining what the business is, how it will be financed, what its goals are and how those will be achieved. Hospitality businesses that fail have often not developed a well-thought-out business plan. Even franchise businesses can suffer if the franchisee doesn’t do enough planning and preparation.

Developing a business plan can be a gruelling task that forces the owner to really examine the business, including all its potential and drawbacks.

A good business plan consists of several key elements, including:

·         concept overview

·         economic overview

·         competitive analysis

·         location or site analysis

·         supplier summary

·         target customer analysis

·         marketing plan

·         capital expenditures

·         financial projections

·         proposed services, menus, etc.

·         management biographies

Each of these areas should be analyzed and planned in detail. It not only helps you as the owner clarify what you want out of your business, but it will give potential lenders and partners the confidence to invest in you.

So don’t leave your business plan to chance; have Cytara guide you in creating or refining one that covers everything from your target customer to what you’ll be serving on the menu. The initial investment in creating a proper plan will save you time and money down the line.

Fill out Cytara’s customer form for more information on how it can help you develop a winning business plan.