Sample Business Plan
By Roger Miller
Prepared September 2010

Table of Contents
Executive Summary 3
Part I: Introduction 4
Part 2: The Company and Management 5
The Mission Statement 5
Industry Profile 5
Company Profile and Strategy 6
Anticipated Challenges and Planned Responses 7
The Management Team 7
Part 3: Marketing 9
Market Analysis 9
The Product or Service 9
Sales and Promotion 10
Part 4: The Financials 11

Executive Summary
The Vault Grill will be located in the town of Mainland, Pennsylvania, a city of approximately 20,000 people. The restaurant will offer a friendly casual dining atmosphere for people of all ages. We will serve a large variety of meals and desserts, but our specialty will be our grilled of fish, steaks, and burgers.
The mission of The Vault Grill is to provide a quality product at a quality price served by quality people. We will demonstrate our devotion to the community through customer service and community relations.
Our ideal customers are those who are looking for a fun and casual place to have a great and affordable meal. We will be located in the downtown area, in a renovated bank building, so we plan to cater to business men and women during the lunch hour and in the after-work hours. Additionally, since there is a small college nearby, we also expect many of our customers will be students and faculty members.
Customers will visit us for several reasons. First are our grilled entrees. They will be the main appeal for their flavor since Joe Mesland, the grill master, has several special rubs and sauces that offer a unique flavor to any meat or fish entree. Customers can select how they would like their entrée prepared by selecting a dry rub or sauce of varying spiciness. Second, we offer a fun and casual atmosphere that encourages people to relax and enjoy their time spent at the restaurant.
The Vault Grill is also part of the local history. It is located toward the end of town in the former National Bank building. The original bank offers a unique atmosphere with vaulted ceilings, marble floors, and unique windows in the upper areas. We are planning on keeping the original vault and some of the other fittings to preserve the historical nature of the building.
Our business will be a limited liability company. We have structured the business as a LLC for personal protection since we will also be serving liquor.
All partners are well qualified to run this restaurant. Steven Samulson has a degree in Hospitality Management. He has managed several successful restaurants, including Henry’s Meat House and The Funky Kitchen. Roger Miller has a degree in business management, and in addition to a strong background in financial management, was recently a partner in a local steak house franchise. Joe Mesland, our grill master, was the head chef at the Cajun Grill for the last ten years and won the prestigious 2007 Silver Spoon award.
Our business will thrive for a number of reasons. First, the city of Mainland has a stable population, with a number of healthy industries and a neighboring college. Second, the local population is upstream middle class. We believe that this segment of the population will have the desire and income to eat out on a regular basis.
Our skills and knowledge in food service, combined with our connections to the community, will make this business a sound investment. PART 1. INTRODUCTION
BUSINESS NAME
The Vault Grill
DESCRIPTION OF BUSINESS
The Vault Grill will be located in the town of Mainland. The restaurant will offer a friendly casual dining atmosphere for people of all ages. We will serve a large variety of great meals and desserts, but our specialty will be our grilled of fish, steaks, and burgers.
FORM OF BUSINESS OWNERSHIP
The business will be a limited liability corporation with three primary partners. Each partner has special skills that they bring to the business.
IDEAL CUSTOMER
Our ideal customers are those who are looking for a fun and casual place to have a great and affordable meal. We plan to cater to business men and women during the lunch hour and in the after-work hours as well as to the students and faculty of the nearby college. We will have special promotions focused on each of these two groups that will be discussed later.
COMPANY ADVANTAGES
Our grilled entrees will define our customer’s experience and persuade them to choose The Vault Grill over the other restaurant choices in the area. The main appeal of the grilled entrees is the flavor, since Joe Mesland, the grill master, has several special rubs and sauces that offer a unique taste to any meat or fish entree. Customers can select how they would like their entrée prepared by selecting a dry rub or sauce of varying spiciness. Second, we offer a fun and casual atmosphere that encourages people to relax and enjoy their time spent at the restaurant.

The Vault Grill is also part of the local history. It is located toward the end of town in the former National Bank building. The original bank offers a unique atmosphere with vaulted ceilings, marble floors, and unique windows in the upper areas. We are planning to make the original vault a visible part of the decoration and will be restructuring the original teller area as the bar. Finally, we will preserve as many of the other fittings as possible to maintain the historical nature of the building.

PART 2. THE COMPANY AND MANAGEMENT TEAM
THE MISSION STATEMENT
MISSION STATEMENT
Our company aims:
• to sell delicious and remarkable food and drinks that meet the highest standards of quality, freshness, and seasonality and that combine both modern-creative and traditional grilled styles of cooking,
• to consistently provide our customers with impeccable service by demonstrating warmth, graciousness, efficiency, knowledge, professionalism, and integrity in our work,
• to have every customer who comes through our doors leave impressed by The Vault Grill and excited to come back again,
• to create and maintain a restaurant that is comprehensive and exceptional in its attention to every detail of operation,
• to provide all who work with us a friendly, cooperative, and rewarding environment, which encourages long- term, satisfying employment, and
• to be a giving member of the Mainland community and to use our restaurant to improve the quality of life in the area.
ETHICAL ISSUES
Our integrity means more than profit; service, quality, and sanitation mean more than volume; and honesty is the basis of sales and service. Therefore, our code of ethics is as follows.
We will:
• ensure that our food and drink meet the highest standards of quality and freshness before and after they are prepared,
• ensure our pricing and performance is done with honesty and integrity,
• ensure our business practices meet the highest standards of service, quality, and sanitation, and
• ensure our employees are treated fairly at all times.
SOCIAL RESPONSIBILITY
The Vault Grill, as an integral part of the Mainland community, will donate any edible and unused foods to the local food bank and will donate meals to needy families throughout the year, especially at holidays. We recognize that our responsibility to society goes beyond food; therefore, we will also have a strong environmental policy and recycle whatever we can, and sponsor events to promote healthy lifestyles. INDUSTRY PROFILE
INDUSTRY DESCRIPTION
The Restaurant sector is in the Services industry. There are many types of restaurants fighting for the same potential customer base. Fast food giants, smaller take-out places, to more sophisticated high-end restaurants are all part of the Restaurant sector. Additionally, cafes, tearooms, and restaurants with ethnic themes such as Italian, Mexican, Chinese, and Thai are all potential threats to our customer base. The Vault Grill sees itself positioned in the middle—offering quality meals in a sit-down environment at an affordable price. There are very few restaurants in the local region that fall into this type of category.

OPPORTUNITIES AND THREATS
Mainland is a vibrant community that has attracted a variety of businesses, and is also the home of Newburg College. While a declining economy may deter some individuals from spending money eating out, since The Vault Grill charges reasonable prices and caters to businesses, the potential negative impact of a bad economy is reduced. The opportunity exists to expand our current customer base beyond the business and college crowd in Mainland.

In addition to economic strains, other possible threats include severe weather in areas that supply the produce, which could affect the availability or price of produce. Similarly, an issue affecting the quality or availability of meat, fish, or poultry (such as mad-cow disease and mercury in fish) is another possible threat. Non-smoking restrictions have been put in place for all restaurants in the county. Since this restriction has been made prior to our opening, we do not believe this will have any impact on our business.

COMPANY PROFILE AND STRATEGY
BUSINESS GOALS
First-year business goals:
1. To break even
2. To build a strong customer base
3. To minimize employee turnover
Intermediate to long-term business goals:
1. To begin a carry-out and catering service within three years
2. To earn net profits of $500,000 within five years
COMPANY STRENGTHS
Foremost, we have a highly motivated management team with expertise in the restaurant business from a management and business perspective. In addition, the chef is an award-winning specialist who has been responsible for grilled food preparation for over 15 years. Our business is community-oriented and intends to ensure that we meet the dining and entertainment needs of our customers.
RAW MATERIALS AND SUPPLIES
The Vault Grill will need the following initial inventory. Prices listed reflect new equipment and furniture. We are looking for used equipment and furniture to help reduce overall costs.

15 Tables @ $350 each $5,250
60 Chairs @ $100 each 6,000
15 Barstools @ $150 each 2,250
2 Cash Registers @ $225 each 450
Squirrel POS System 1,500
Char-Grill Oven Unit 1,000
Viking 8-Burner Stove 3,500
3 Microwave Ovens @ $150 each 450
Deep Fryer 2,500
Refrigeration Unit 2,000
Freezer 4,000
Ice Maker 1,000
Dishwashing Unit 2,000
3 Prep-Tables @ $200 each 600
Table Linens and Napkins 500
100 Small Glasses @ $1.00 each 100
100 Large Glasses @ $1.25 each 125
60 Wine tumblers @ $2.00 each 1,200
100 Sets Plates, Bowls, Mugs @$10.00 each 1,000
100 Sets Silverware @ $12 per set 1,200
Miscellaneous Kitchen and Bar Supplies 2,000
Table and Restaurant Decorations 1,375
Total $40,000

In addition to the above, we anticipate renovation costs of approximately $200,000 to convert the existing bank to a restaurant and kitchen facility. We will need to stock our bar with liquor, wine, and beer and our pantry with basic cooking staples such as canned products, spices, and condiments. We anticipate initial bar and food stocking costs to be approximately $8,000. Most of our bread and dessert offerings will be made fresh on site. All other food items will be purchased from local distributors on a weekly basis. Local in-season produce will be used as much as possible.
Our inventories will not be significantly affected by change in seasons or holidays.

We plan to be open from 11 a.m. to 10 p.m., Monday through Thursday, 11 a.m. to midnight Friday and Saturday. We will be closed on Sundays, Thanksgiving, Christmas, and New Years.
ANTICIPATED CHALLENGES AND PLANNED RESPONSES
ANTICIPATED CHALLENGES
We have two major anticipated challenges:
1. We must obtain sufficient funds to start the venture.
2. There is a rumored opening of a steakhouse chain restaurant in a new mall opening up just outside the Mainland border.

PLANNED RESPONSES
We plan to respond to these two major anticipated challenges as follows:
1. The three initial partners are planning to personally contribute nearly half the anticipated funds needed to start the venture. In addition, we have made contact with a restaurant that is upgrading its furnishings and equipment. We anticipate that we can purchase many of the furnishings and kitchen equipment that they are replacing, thus driving down the level of our initial funding requirements.
2. While the rumored opening of the steakhouse chain may initially hurt us, we are confident that we can win over customers with our signature grilled-preparation, customer-focused service, reasonably priced menu, and proximity to local businesses and the college.
THE MANAGEMENT TEAM
MANAGEMENT
There is one level of management in the restaurant, with three different types of managers as follows:
• Floor Manager
• Grill Manager
• Accounting Manager
All managers are also co-owners.
ORGANIZATIONAL CHART
The organizational chart for The Vault Bar and GrillCafé is quite simple given that it contains only one level of management. As the business grows, further levels of management and more employees may need to be added.

PART 3. MARKETING
MARKET ANALYSIS
MARKET RESEARCH
The Vault Grill will have two markets.
The first target market is the businessmen and women who work in Mainland and surrounding areas. These individuals are college educated, in their 30s, 40s, 50s, and 60s, middle class, and will be looking for quick, reasonably priced lunches in a nice atmosphere in which to entertain business associates and clients. We also anticipate that younger professionals in their 20s and early 30s will be looking for a fun, casual, and reasonable place to meet after work for dinner or a few drinks.
The second target market is the college community. While we do not expect that many of our regular customers will be students, we do anticipate that faculty members, administrators, parents of students, and some students on special occasions will frequent The Vault Grill. The demographics of this second target market vary quite widely but are held together by their connection to the college. The second target market will be more seasonal in nature, as the college year runs primarily from September through May.
ASSESSMENT OF THE COMPETITION
Several competitors exist in the area, ranging from the fast food giants of McDonalds and Burger King to other smaller take-out convenience places to more sophisticated high-end restaurants. There are also a handful of cafes and tearooms, and a few ethnic restaurants. The Vault Grill sees itself positioned in the middle—offering quality meals in a sit-down environment at an affordable price. There are very few restaurants in the local region that fall into this type of category. Specifically, there is the Mainland Diner, Winston’s, and The Country Restaurant.
THE PRODUCT OR SERVICE
PRODUCT FEATURES AND BENEFITS
The Vault Grill’s featured menu item will be its grilled entrées. Our grill master has several special rubs and sauces that offer a unique flavor to any meat or fish entrée. Customers can select how they would like their entrée prepared by selecting a dry rub or sauce of varying spiciness. For those who are not fans of grilled meat, poultry, and fish, we will offer other methods of preparation, pasta dishes, and meal-portioned salads. Another signature product will be our warm breads and creamy flavored butters placed at each table after diners are seated. We will strive to present a total product offer that includes warm and friendly service, a delicious, reasonably priced meal, and a relaxing ambience. PRODUCT DIFFERENTIATION
People have many choices when it comes to dining out. We know that we have to offer a product that stands out from the competition. We will have two major differences from our local competitors. The first is the grilled preparation of our food as well as the fresh, high-quality produce and bakery goods. Diners will place the highest importance on the meal itself, and so will we. However, the food is only part of the dining experience. We will pay close attention to ensure our wait staff is well trained, customer focused, clean, and friendly. The details of customer service from attire and grooming to efficiency and friendliness will constantly be monitored. Finally, since a significant part of our business will be coming from serving business lunches, we will strive to ensure our customers with time constraints receive extra quick and attentive service.
PRICING
Our pricing strategy is fairly simple. We plan to position our menu offerings and their prices to reflect our quality products but not too high to give the impression that we are a higher-end restaurant. Although we will have opening week specials, we will not pursue penetration pricing or price skimming as we do not wish to cause discontent among customers when we inevitably raise our prices to secure a profit later.
SALES AND PROMOTION
PLACE (DISTRIBUTION) ISSUES
Mainland, with its business and collegiate communities, offers the type of customer base we are seeking. We foresee no distribution issues. In the future, we hope to expand The Vault Grill services to offer catering and take-out.
ADVERTISING
Although we have two target markets, we will have primarily one advertising approach to attract both business and collegiate customers initially, but will rely on word of mouth recommendations as our best ongoing advertising strategy.
Initially, we plan to distribute brochures with sample menus to all local businesses and to college faculty and administration. These advertisements will include coupons for discounts on our lunch menu. Coupons will also allow us to track the success of the advertising.
We will also be listed in the local phone book and will have a small site on the Internet.
In opening week, we will run ads in the local newspaper and college newspaper to advertise our presence.
These ideas are fairly inexpensive ways to get our message out to our target markets. PROMOTION
We will have several opening week and ongoing promotions.
During opening week, we will feature buy one get one free lunches and a free appetizer with purchase of two entrees after 6 pm. These specials will last only opening week and will seek to generate initial foot traffic in the restaurant.
We will also have several ongoing promotions. At lunchtime, when many customers are under pressure to return to their office within an hour, we will guarantee meals will be served within 20 minutes of ordering or customers get their lunch free. Similarly, to entice those who might stop in for a drink after work to stay for dinner, we will be offering discounts on meals ordered prior to 6:00. Finally, for college students who might need an evening break, we will offer half-priced appetizers after 9 pm on Monday through Thursday nights.
We will also have promotions during the fall, when Mainland has its street festival. This festival attracts visitors from outside our community. These promotions will build attention (and word of mouth) from those who live in Mainland, as well as nearby towns. PART 4: THE FINANCIALS
EXPECTED REVENUE
We believe that we can average 100 customers per day, with approximately 65 at the lunch hour and 35 at dinner.
We believe that the average lunch bill will be approximately $8.50 per customer, and that the average dinner bill will be approximately $17.50 per customer.
This will provide our restaurant with revenues of approximately $550 at lunch and $600 at dinner for total average daily revenue of $1,150.
Although The Vault Grill will experience different traffic and therefore revenues for each day of the week, this will lead to yearly food revenues of approximately $345,000.
Additionally, we believe we will average 50 customers a day at the bar, Monday through Thursday, with an average bar bill of approximately $4 per person.
On Fridays and Saturdays, we expect more bar customers who will also stay longer at the bar. Therefore, we expect about 100 bar customers a day on Fridays with an average bar bill of approximately $10 per person, and 75 bar customers a day on Saturdays with an average bar bill of approximately $10 per person.
We anticipate bar revenues of approximately $122,400.
Total bar and food revenue is anticipated to be approximately $467,400 per year.
We plan to be closed on Sundays, Christmas, New Years, and Thanksgiving.
COST OF DOING BUSINESS
Expenses Expected Monthly Cost Expected Yearly Cost
Rent 1,500 18,000
Salaries and Wages 10,000 120,000
Supplies 500 6,000
Advertising and Other Promotions 250 3,000
Utilities: Heat, Electricity, etc. 800 9,600
Utilities: Telephone and Internet 100 1,200
Insurance 1,650 7800
Total 14,800
165,600

STARTUP COSTS
We anticipate needing $200,000 for building renovation, $35,000 for decorations, furnishings, and equipment and supplies for the kitchen and bar, and $8,000 for initial stocking costs bringing our startup costs to total $243,000.
FINANCING
The three managers will each put a total of $25,000 into the startup of this business. The remaining $168,000 is the amount that we are requesting for bank financing. 12-Month Income Statement
The Vault Grill
2010

January February March April May June July August September October November December YEARLY
Revenue (Sales)
Food Sales 28,750 28,750 28,750 28,750 28,750 28,750 28,750 28,750 28,750 28,750 28,750 28,750 345,000
Bar Sales 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 10,200 122,400
Total Revenue (Sales) 38,950 38,950 38,950 38,950 38,950 38,950 38,950 38,950 38,950 38,950 38,950 38,950 467,400 Cost of Goods Sold
Food Purchases 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 96,000
Alcohol Purchases 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Total Cost of Goods Sold 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000 Gross Profit 28,950 28,950 28,950 28,950 28,950 28,950 28,950 28,950 28,950 28,950 28,950 28,950 347,400 Operating Expenses
Rent Expense 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000
Salary/Wage Expense 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Supplies Expense 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Advertising Expense 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Utilities Expense 800 800 800 800 800 800 800 800 800 800 800 800 9,600
Telephone/Internet Expense 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Insurance Expense 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 19,800
Interest from Loans (if applicable) 1050 1050 1050 1050 1050 1050 1050 1050 1050 1050 1050 1050 12,600
Breakage Replacement 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Total Expenses 15,950 15,950 15,950 15,950 15,950 15,950 15,950 15,950 15,950 15,950 15,950 15,950 191,400 Net Profit 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 13,000 156,000 Balance Sheet
As of June 2010
Assets
Current Assets
Cash in Bank $100,000
Inventory $8,000
Prepaid Expenses (6-mo. insurance) $8,600
Total Current Assets $116,600
Fixed Assets
Machinery & Equipment $19,000
Furniture & Fixtures $21,000
Real Estate / Buildings
Total Fixed Assets $40,000
Total Assets $156,600 Liabilities & Net Worth
Current Liabilities
Accounts Payable $3,000
Taxes Payable $10,000
Notes Payable (due within 12 months) $1,000
Total Current Liabilities $14,000
Long-Term Liabilities
Bank Loans Payable (greater than 12 months) $125,000
Less: Short-Term Portion
Total Long-Term Liabilities $125,000
Total Liabilities $139,000
Owners' Equity (Net Worth) $17,600
Total Liabilities & Net Worth $156,600