I’ve been in manufacturing for 15 years and thought “hey…I can do pizza” because I was foolish enough to think that all pizza operations run on the same cost percentage models. Guys, I have a new respect for pizza operators. But, pizza joey is asking 3 things according to his post and I’ve edited this post accordingly. His first question is actually 3 questions: 1A). A good way to put together a business plan. Straight to it: Sysco Foods has this operational info by percentage applicable for this business profile but its up to you to adapt it to your revenue projections and factual operational cost. You’ll create your plan by collecting data, writing a story in a word doc., and building multiple spread sheets compiled from research that result in projected 12 month, 3 year and 5 year P&L projections and balance sheets. 1B.) My experience in building business plans: I’ve been successful with several businesses in the past, some of them investor funded, some self funded, some never funded / boot-strapped. I presently own two companies and my business plans are worked on regularly (even at our 10 year anniversary), and both are successful for this reason. #1C) Any software recommendations or such? I build plans with spread sheets and a word-document. I did the same with my pizza restaurant. You can use a cookie cutter software but, its cumbersome because it does not likely offer the flexibility to consider the details which are specific to your 5,000 sq.ft. pizza operation. A spread sheet will. #3. The second is access to actual real world numbers. Has someone found a good source for this. Is anyone willing to share their numbers made anonymous of course? Yes. But the problem is (as stated above), the variables which you’ll need to adjust. I believe my operation may be similar in scope therefore I believe I can assist with credible numbers and advice toward adjustments. The other contributors have indicated that the variables is their concern for major differences in your potential operation vs. theirs. They are right. I have given instruction above on getting “the numbers” (there are no short cuts), and advice on using numbers directly from suppliers. This is critical; every number that you source for real and verify is another step toward predictability and potential success. The more averages and “other peoples numbers” you use, the less likely you’ll get it right when it comes pay day. I can supply real numbers in PM.
Now, my 2 cents:
I spent an easy 100 hours building food cost spreadsheets that tell me cost per oz., portion size per oz., cost per portion, profit multiple, gross profit dollars per item (yes, I weighed the sauce with a digital scale that goes in the spaghetti dinner and every other ingredient that goes into each menu item), and our gpm (gross profit margin), per item sold. The master cost sheets are updated regularly. 12 months in, my business plan is updated regularly and this is one part of it. Based on your earlier comments, you know this because you work in an operation currently. Moving into a new venture, you’re using multiple spread sheets covering all major aspects from cost categories to profit centers to build the components of the financial plan. Then in a word document, you’re explaining how your concept will generate north of $2.5 million in sales (or whatever it is) to justify 5,000 square feet of overhead and show a return worthy of the investment and overhead. Your final business plan can be as simple as 2 pages provided that the research behind your financials is rock solid and the story is compeling.
Wait… I see there were more questions than 3. Finally what kind of start-up costs would be expected? Can I do this on a modest budget? 3A). I’d tell you that I’d drop at least $150k on a remodel and re-branding of a PH just to “shake off the where you came from dust” but, I don’t know your concept. Buckets of flower petals and fairy dust could be your concept, I don’t care really. Scroll up… Add up the itemized cost of what you’re going to do to bring your concept to reality, and there’s your cost. It seems you’ve identified an attainable, potentially affordable location where you can do business selling pizza. Empty space with attractive rent may be helpful but, it doesn’t define the real opportunity. When building your plan, take the position of a potential investor. If I were investing, the concept is important to generate public interest which creates initial and sustainable sales revenue. If your cost model is accurate, the rest could fall into place assuming you’ve covered your operational bases. Right now, you’re looking at space, not a business. You haven’t said. However, to that end, you ask about the budget size: 3B). Yes, a modest budget can be used. Entire empires have been built on next to no start up funds. I can’t say if it was good planning, great ideas or unbelieveably good luck. Sometimes all three. I happen to have a soft-spot for an underdog story.
Feel free to PM me and I’ll be glad to share more of what I know.
Best of luck.
