A pizzeria business plan is documentation that lays out your vision and roadmap for growing your pizza business. It serves two main purposes. First, if you’re looking to raise funding to start or grow your pizzeria, your business plan is an essential document that banks and/or investors will review before providing funding. Second, your business plan serves as a strategic guide and roadmap to follow in your quest to grow your pizza shop.
Your pizza shop business plan should include nine components as follows:
While this is the typical order in which a pizza business plan is laid out, there are four key types of sections in this simple business plan template. Below you will learn about each of these sections and how to complete them.
There are three components of your business plan that are research oriented. Here’s a closer look at those components.
The industry analysis part of your plan discusses the size of the pizza industry and trends facing it. While you may not consider this to be an essential element, banks often do. Completing this component, shows banks that you are sophisticated and understand the market in which you are competing.
Also, the research you conduct here could improve your strategy. For example, let’s say you uncovered a major trend towards gluten-free pizza crusts. You might then alter your products to include gluten-free options and enjoy sales growth as a result.
The customer analysis component of your pizza shop business plan details the key customers you serve. Ideally you can document their demographic make-up (e.g. ages, income levels, etc.) and their wants and needs.
Documenting your target customers can improve your marketing strategy. For example, if you found many of your customers were members of a certain club, sponsoring that club’s events could bring in new customers. Likewise, knowing your target customers’ demographics allows you to better target them using social media and other advertising platforms.
In completing your plan, you should research other pizza shops in your area to find their strengths and weaknesses. Go to review sites like Yelp to learn what their customers think about them.
Document what you learn in your business plan, but more importantly, use it to improve your offerings. For example, if customers like a competitor’s pizza varieties, or customer service, or quick take-out options, these are items you too should consider developing to be competitive in the market.
There are three components of your business plan that are strategy oriented. Read on for more details about those components.
The marketing plan for a pizza shop includes the “4Ps”, or product, place, price, and promotions:
Your operations plan has two parts.
The first, known as “everyday operations,” discusses the staffing required to run your pizza shop on a day-to-day basis.
The second part is your milestones. In this section, detail the key milestones you’d like to achieve over the next five years. Here’s how to best complete this. First, start by envisioning where you’d like your pizza business to be in five years. For example, let’s say you’d like to have revenues of $3 million. Then think about how many customers you will need to achieve that goal and how many locations you must have.
So, for example, your five-year milestones might include the following: Sales of $3 million; 250,000 customers served, two locations. Then, work backwards to figure out what goals you must achieve in year four, year three, year two and most importantly in the coming year.
For the coming year, break down the milestones even further and get more granular. For example, if you hope to launch a new pizza shop in year two, in March of year one, a milestone could be to start looking at new locations. June’s milestone might be to begin construction. December’s milestone might be to hire the new store manager. The goal is to really map out your growth and determine short-term milestones. When achieved, these goals will progress you and your company towards meeting your long-term goals.
A financial plan for a pizza shop details the amount of money you need to raise, if applicable, to grow your business. It also includes financial projections showing your expected growth. Your projections must include an income statement, balance sheet and cash flow statement.
In completing your financial projections, you must make assumptions about many items such as sales growth, employee salaries, costs of goods sold, etc. As much as possible, base these assumptions on past results so you create the most realistic projections possible.
Two components of your business plan discuss your current pizza shop. Let’s explore those components further.
The company overview section of your pizzeria business plan details your history. Here you will want to discuss your accomplishments and milestones to date. For example, include the date you first opened your shop, the date when you reached $X in sales, etc.
Importantly, think through the strategies you employed to achieve your past results, and whether you should use the same strategies to grow.
In the management section, list the bios of the key members of your team. If investors or lenders read your plan, they’ll want confidence your pizza shop is led by the right people. Discuss your team’s achievements to date.
Also, if you plan to expand and hire new employees, discuss the key employees you must hire and the ideal characteristics of each.
Your executive summary sums up your entire plan. It should provide highlights from each key area of your plan. For example, while in your marketing plan, you might include three paragraphs describing your top promotional methods, in your executive summary, you’ll include just one line saying “X, Y and Z are the three promotional methods we will employ.”
In addition to summarizing your key sections, your executive summary should answer a critical question of investors and lenders. That question is “why are you uniquely qualified to succeed.”
While your answers will vary, here are many ways in which your pizza shop could be uniquely qualified to succeed:
Importantly, you should always be thinking about how to create more unique qualifications. For example, would hiring a new staff member give you unique capabilities? Ask yourself this question when thinking through your business strategies.
As mentioned above, one key way to enjoy and promote (to investors/lenders) your unique qualifications is to gain operational excellence. A simple way to accomplish this is to use Revel’s Pizza POS System. With Revel’s system you enjoy easy to set up online ordering, customizable delivery options, a customer loyalty program and inventory management among other benefits. Start using it now and your business plan, strategy and results should quickly improve.