Profit and cash flow are different questions.
A business can report a loss and still have cash in the bank. See why that happens, using the same restaurant forecast from start to finish.
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Practical guides for the decisions behind your next business. From the first idea to the numbers and the pitch.
8 guides
A business can report a loss and still have cash in the bank. See why that happens, using the same restaurant forecast from start to finish.
Read the guideUse an example to understand the customer, the operation and the assumptions. Then build a plan around your own business.
Read the guideSeparate what you spend before opening from the cash you need after opening. A worked example shows how those amounts fit together.
Read the guideGive each slide a purpose. Keep the offer, operating model and funding request consistent with the longer plan and financial forecast.
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Counter service, full service and delivery first sell different units, carry different commitments and need different demand tests.
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Separate premises and equipment, pre-opening expense, stock and the cash needed after launch. Three worked budgets show the distinction.
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Use defined profit measures, include the working owner’s pay and test demand against fixed commitments. The first-year loss is part of the answer.
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Follow proposed funding into launch uses, opening cash and monthly balances. The low point matters more than the opening balance alone.
Read the guideTry “cash”, “funding” or “pitch”, or return to all guides.
PUT THE IDEAS IN CONTEXT
Read the restaurant plan, follow its forecast and inspect all ten pitch slides.
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Fictional caseTHE NEXT CHAPTER IS YOURS
Bring your idea and assumptions.
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