How to Do The planning- To open a Bakery or a Restaurant – The right Way.

How to Do The planning- To open a Bakery or a Restaurant- The right Way

   In my experience i have seen many business owners designing their production area and restaurant before having a Tentative menu and Business plan in place.I believe it is not the right way to begin and let me explain why?

The First thing you need to do is to decide the concept based on the;

  • Market Research to analyse the demand
  • category of people you want to serve
  • Location
  • Financial capacity.

2.Menu (Tentative)
 This is the most important step as everything pretty much revolves around it.
   Though mentioned as tentative ,it is important to arrive at a menu based on the concept for number of reasons.

  • It helps you  decide what are the equipements required to execute the products in the menu.And lets you avoid buying what is not required.
  • You can also estimate how much space will be required to produce and cater the menu items.
  • It will also be helpful in deciding how many staffs are required and in what categories ( Including service staff).
  • Storage Facilities can also be planned accordingly.
  • This will also help you to prepare a more accurate Business Plan.

Eventhough it highly recommended to plan the menu in the begining ,it is advisable to be flexible to a certain degree, and   design the production area in such a way that any future menu additions or changes can be accommodated.

3.Business Plan

 What is a Business Plan?
It is a document that gives you the clear view of your objective, a road map for your plan of work and estimated expenditure for each one.I advice everyone to take time to preapare this document or use the help of experts to help you make it more thoroughly.

Business plan is usually divided into 2 parts.

This part will have the following content;

  • Vision
  • Mission Statement
  • Accounts Receivable/Payable
  • Work Plan
  • Swat Analysis
  • Segmentation, Targeting And
  • Human Resources Plan
  • Summery
    of work


This part covers all the financials and is divided into 2 sub categories;

1.Capital Investment

This category will cover the following necessities;

  • Legal Requisite
  • Machineries 
  • Rental Cost
  • Production Area setup
  • CafĂ© area setup
  • Outdoor setup
  • Packing materials
  • Miscellanious Expenses
  • Working Tools requirement
  • Marketing Expenses
  • Opening raw materials inventory
  • Safety Measures
Depending on the concept,Menu and Location it varies from business to business.Hence it is wise to make specific business plan suited for your venture.
2.Working Capital
   This is very important because from my experience, lots of business owners miss out on planning this and end up in tight situations.
Why is this important?
    Once you have invested your money to setup the place and its ready for business it doesn’t end need money to run the business for several months without expecting profit from it.The amount you spend to take care of your day to day and monthly expenses are called working capital.
This category will cover the following necessities;
  • Staff salaries Estimation
  • Staff Food and perishable purchase
  • Monthly Bills and purchases/Variable Costs
Apart from the above mentioned details,Business projection,Break even target projection will also be included.Again few things willl differ from business to business.
Though each section can be explained in detail, i have tried to summerize the main points to give you an fair idea about the right way of planing to start a business.
Hope this is helpful…….
let me know of your thoughts…. And Kindly Subscribe ……
See you all with more useful stuff ……….
Until then bye from chef pradeep ………..


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