| This pizza
business plan book outlines the information that is
essential for your successful funding search.
KEY CONSIDERATION
So what makes you think your pizza is so hot? Good grief, your
competitors are Papa John, Roundtable and dozens of others that
have gazillions to spend on promotion. What makes you think you
can make it?
Don't laugh. That is exactly what the lender/investor is going
to be thinking when you walk in.
STRONGEST ADVANTAGE
Everyone loves pizza. It's the American "comfort food". (Sorry,
Italy, it doesn't belong to you -- it is solidly American.) When
a pizza parlor can establish itself as the pizza parlor of
choice in a given area, it has really hit a home run. Everyone
from local little league teams to corporate party givers will
support it. The caveat is that pizza business plan must be impeccable.
STRONGEST DISADVANTAGE
... about that competition.
OVERCOMING THE DISADVANTAGE WITH YOUR
PIZZA BUSINESS PLAN
Prove that you have the experience to make the pizza parlor
successful.
It is no good at all having a
pizza business plan if you personally don't have the experience to carry it
off. And it's more than being a delivery person one summer. It
means real, hands on experience, preferably from the big boys.
You should have been at least a store manager, and preferably a
regional manager, of one of the major chains. Or your mother
might have owned the leading pizza parlor in your home town.
Demonstrate your creativity.
It does no good at all to say that you can develop creative
marketing programs; you must clearly demonstrate it. Outline
marketing programs that you developed in the past, including the
cost of the promotion and the verifiable results.
Use artist's renderings to demonstrate what differentiates your
pizza parlor from all the others.
Make strong use of charts and graphs in your marketing plan, as
well as pure numbers, to demonstrate grasp on communication.
Note: I have not mentioned taking a pizza to the banker. No one
questions that you can make pizza. What will be questioned is if
you know how to open and operate the business.
GETTING THE HARD NUMBERS FOR YOUR PIZZA
BUSINESS PLAN
"Touchy feely" numbers just won't cut it. More than most
businesses, the pizza business plan needs solid
numbers from reputable sources behind it.
Assessing the Competition
First, determine that another pizza
restaurant isn't planning on
opening nearby. This may take some legwork, and some schmoozing.
Talk to the owners of the various local strip malls. Talk to
your local city and county planning departments. Talk with local
restaurant owners. Note each and every conversation you have.
You need not list these conversations in your marketing plan,
but have them in your memory if the topic comes up.
For traffic information on your retail location, contact the
owner/manager of the retail center. Also go to your city or
county planning department where you can get traffic counts and
information on housing and construction in that area.
For demographic information on your location, go to your local
city or county planning department. They will be able to provide
you with updated statistics, with projections, down to the block
area where your pizza parlor will be located. While it's nice to
believe that the retail center will give you valid information,
back it up with statistical information from a disinterested
source.
For information on the pizza industry as a whole, go to
BizMiner.
Look for the search box for Industry. You have a choice here.
You can either enter "pizza", and get reports for "pizza
restaurants". Or you can enter "pizzeria", and get reports for
both chain pizzerias and independent pizzeria. All of these
reports are compiled from the financials of literally thousands
of restaurants, so you will know what the current norms are for your
industry.
The data that will be provided gives you a benchmark for your
financial projections for your business plan as well as your
marketing plan. You do need to know this information because
knowing the parameters of the business means that you will know
the same figures that your banker will know. That is an
important advantage in your corner.
The information provided can also provide very solid industry
information for your business plan.
While you are in BizMiner, look to the left for VIEW ALL
REPORTS. Follow that to DEMOGRAPHIC INFORMATION. This will tell
you all about your local and regional demographics for your
business.
YOUR LIKELY LENDER/INVESTOR
The
SBA is a strong lender in the retail field.
If yours is an established pizza parlor looking to expand
regionally, nationally or internationally, a venture capital
firm may be your best choice. Be sure to check out the newest
development in venture capital:
venture lending. Also look to
major suppliers as possible joint venture partners.
YOUR ONLINE PRESENCE
Odds are that you will be able to sell online, in addition to
posting information about new products and sales. Take advantage
of that opportunity. The online market is growing by leaps and
bounds -- you might as well be part of that revolution. See
the
best web host for more information on my preferred web host.
YOUR PIZZA BUSINESS
PLAN
A pizza parlor present particular challenges in funding. If you
truly can address the marketing issue, you are well on your way
to funding.
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