Marketing

Marketing is a means of communicating to customers and potential customers. The aim of marketing is to satisfy customers’ needs and at the same time make a profit.

This section of the business plan should explain how the pub currently serves the needs of its customers and what opportunities there are for attracting more customers or getting the existing customers to spend more. It also needs to identify who your target customers are and how you can influence them. In order to do this you must have a good understanding of what they want and when they want it. The next step is to make sure that what you are offering is attractive to your target customers. You then have to find ways of communicating this to them. Your plans for marketing the pub should be well researched and have SMART objectives.

See Chapter 14, Marketing, for more information on this subject.

Management Of The Business

The most important parts of a business are its people, and above anything else, it is the people running the pub, that are crucial to its success.

This section should focus on your skills, abilities and experience and include any past examples of your successes, qualifications and areas of expertise. It should demonstrate how you will play a positive part in building the business.

You should also show how you divide the responsibilities in order to best utilise your skills and operate the pub effectively. Staff should also be discussed, including any key staff that may be important to achieving your objectives. (An example of this would be a food pub with a highly prized chef.) It should also cover any contingency plans, when people are unable to fulfil their roles or decide to leave the business.

The aim of this section of your business plan is to give the reader confidence in you and convince them that you are capable of making a success of the pub.

Financial Forecasts

This section is where you translate your business into hard cash. It shows how much profit you are likely to generate and your cash-flow forecasts. It is the section that will be scrutinised by lenders when you wish to borrow money. It will also be your budget and a means of measuring your performance. As a result, your financial forecasts should be thorough and well researched. Any errors or omissions could have a major affect on your business.

Profit and cash-flow forecasts should cover a minimum of twelve months and show the position broken down month by month for this period. The profit forecast shows the amount of profit (or loss) you predict to make on a monthly basis and excludes VAT, as this does not directly affect the profitability of the business. Costs are usually apportioned equally over the twelve-month period. For example, an annual rent of £ 12,000 (excluding VAT) will be divided over the year at £ 1,000 per month.

An example of a profit and loss statement is given in the Appendix.

A cash-flow forecast shows the business’s requirement for cash on a monthly basis, over a twelve-month period. It shows the inflows and outflows of cash of the business. Figures are entered into the month when the money is due to be received or paid out and includes VAT. For example, if your annual insurance payment is due in February, the full amount payable would be entered in the column for the month of February. Any VAT or tax payable would be shown in the months that they are due to be paid.

An example of a cash-flow forecast is given in the Appendix.

Where copies of audited accounts are available, these should be included in

this section of your business plan, together with any supporting trading information like barrelage figures etc.

Supplementary Information

A small number of photos is a useful addition to your business plan. The pub and its main facilities should be included together with a photo of its position. Other information, like location maps, menus, price lists and CVs can be added in the business plan appendix. This keeps the body of the business plan free of clutter.

Presentation Of Your Business Plan

The presentation of your business plan is important when you are trying to gain the confidence of lenders or recruiters. A well-typed document, with a small number of photographs, and presented in a folder will give it a professional look. Remember that your personal presentation is just as important as a good business plan. Make sure that how you look and present yourself is equally professional.