Business Plan

Partner(s):

Pub Name:

Business Plan Prepared By:

Pub Address:

Date:

Will trade as: (Please consult your financial advisor regarding the
appropriate status for your business).

Sole Trader Partnership Limited Co

The following is a format business plan, which is

intended to help you clarify YOUR ideas on running
YOUR own business. Don’t worry if you can’t go
into every detail of the business at this stage - this
is just the first step in the process. Your Operations
& Sales Manager will be able to provide you with
further planning tools once you are in the pub,
including a Promotions Plan.

This Business Plan should be the result of careful

consideration, research and planning and you may
wish to include thoughts and ideas which are not
already noted on the following pages.

If it is successful, this plan could determine your

future but, even more importantly, it should help you
decide if this is truly the business for you.

PLEASE NOTE: If you are unable to complete any

questions due to lack of space provided, please use
the “notes” pages at the back of this document.
 About You
What appeals to you about running a pub?

What relevant skill, experience and knowledge do you bring to the business?
Think about catering, general retailing, people, communication, business skills and your ability to train others.

About Your Business Partner

Do they have the same/different/complementary skills?

Would you or your partner (or both) be giving up current paid employment to take on this business?
If so, please detail the estimated value of any income and benefits (eg. Pension Plan) that you would be giving up.

How would you describe the general health of both you and your partner? (if intending to work in the business)
 About The Pub
This format will help you focus on the key elements

Strengths: What does the business have going for it? (e.g. Location, reputation, staff, etc...)

Weaknesses: What and where are the “chinks in the armour”? (e.g. Decor, layout, external appearance)

What is restricting the growth of the business? (i.e. Things you can’t control/change)

Opportunities: What can you do to improve the pub's current performance? (e.g. Service standards, cleanliness etc...)

Threats: What could threaten your plans or the future success of the business?
(e.g. Factory closure, road schemes, pub reputation etc...)

Tell us what you know about the pub you are applying for.

Staff: What are your plans to improve existing staff performance?

(e.g. Training, uniforms, staff rotas, service standards, etc...)
 About The Pub (continued)
Customers: Who are the major customers currently visiting the pub? (Tick as many boxes as necessary)

Local Business Shoppers Tourists Sports Fans Other

If other, please specify:

At the moment who are they? In the future: Where will they come from?

Competitors: Who are they? What makes them a threat?

What would you like your pub to be known for? (e.g. Best steak pie, friendliest staff, colourful customers)

What are the top 3 ways to build sales? (e.g. Developing food, unused areas, new customers, etc...)

How will you turn these opportunities into sales (e.g. Lunchtime “Shoppers Special”, etc...)

What are the costs involved? (e.g. Promotion, printing, advertising, etc...)
 Your Goal
Summarise what you want to achieve when you take on the business -

Personal Goals

Financial Goals Think about your regular financial commitments.

Other considerations

What concerns do you have about taking on this type of business?

What independent, professional advice (if any) have you already taken on going into a new business?

What additional training do you or your partner require to operate the business successfully?
 How Much Is Your Business Going To Take?
(See Glossary of Terms in the back pocket for help in completing this section.)
Enter weekly projections and multiply by 52 to calculate the annual figures.
Computer model is available on disk in the back pocket; this will do the calculations automatically.
(Projections should be EXCLUSIVE of VAT)

PROJECTED PROFIT & LOSS ACCOUNT FOR FIRST YEAR OF TRADING

PROJECTED INCOME (Turnover) Weekly £ Annual £

Liquor (Wet Sales)

Less Cost of Sales

Gross Profit a

Food (Dry Sales)

Less Cost of Sales

Gross Profit b

TOTAL GROSS PROFIT (a+b=A) A

Other Income

Gaming Machines

Accommodation (If applicable)

Other (e.g. Functions)

Total Other Income B

GRAND TOTAL (A+B=C) C

Notes
 How Much Is Your Business Going To Take? (continued)
PLEASE NOTE, THE LIST BELOW IS NOT A FINITE LIST OF COSTS; IT IS INTENDED AS A GUIDELINE ONLY AND YOU
SHOULD ANTICIPATE COSTS ACCORDING TO YOUR OWN PLANS FOR THE BUSINESS.

PROJECTED EXPENDITURE (Overheads) Weekly £ Annual £

Rent + Franchise Fee

Rates (General & Water)

Cleaning

Insurance

Equipment Hire

Machine Rental

Wages: Bar Staff

Kitchen Staff

Cleaning

Electricity, Gas & Oil

Plants & Flowers

Repairs & Renewals

General Administration

Vehicle Costs (Tax, Insurance, Running Costs etc...)

Entertainment

Advertising

Licenses

Legal & Professional Costs

Maintenance

Bank Charges

Subscriptions

Other Please specify:

TOTAL COSTS D
TOTAL GROSS PROFIT (See previous Page) C

TOTAL NET PROFIT (C-D=E) E

THIS DOES NOT INCLUDE PERSONAL DRAWINGS (i.e. Cash taken for your own, personal use - See overleaf)

Notes
 Personal Requirements/Commitments

ANNUAL EXPENDITURE (These are costs you will incur outwith the business)

Mortgage or Domestic Rent £

Council Tax £

Water Rates £

Utilities £

Personal and Property Insurance £

General Housekeeping Expenses £

Telephone £

HP Repayments £

Hire Charges (TV, Video, etc...) £

Saving Plans £

Contingencies £

Pension Plans £

Personal Loans £

Other (Please specify) £

TOTAL EXPENDITURE F £

ESTIMATED ANNUAL INCOME (i.e. Not from the pub)

Total Income from Family/Partner £

Other Income Please state source:

£

TOTAL INCOME G £

TOTAL MINIMUM INCOME REQUIRED FROM BUSINESS (G-F=H) H £

 Your Start Up Costs and Your Financial Resources
By completing this section, you will see how you are going to fund taking on the business.

We require information on the following:

- How much is actually required to set up the business.
- How much you are prepared to invest in the business.
- How much money you have immediately available.
- How much you may have to borrow.
- Who do you intend to borrow from?
- What further financial advice do you need?

INGOING CAPITAL £ WORKING CAPITAL £

Fixtures & Fittings Utilities (Deposits & Connection Charges)

Till(s) Business Rates

Deposit Water Rates

Stock Insurances

Advance Rent Insurance & Franchise Fee Maintenance & Service Contracts

Initial Franchise Fee Wages

Licence Application Fee Cash Floats

Valuer's Fee Stock Purchases

Solicitor's Fee Entertainment

Other Other

TOTAL INGOING I TOTAL WORKING J

Total Capital Required:

(add Total Ingoing and Total Working) (I+J=K) K £

FINANCIAL RESOURCES Amount £ Source Availability (eg. Immediate, 90 Days, etc.)

Cash

Equity in Property N/A

Shares N/A

Existing Loans

TOTAL CAPITAL AVAILABLE L

Less TOTAL CAPITAL REQUIRED K
POTENTIAL SHORTFALL (L-K=M)
This represents the amount you M
may have to borrow
 Useful Web Sites
Business Support Services
Alliance of Independent Retailers: www.indretailer.co.uk
British Franchise Association: www.british-franchise.org.uk
Business Connect Wales: www.bc-wales.org.uk
Business Link: www.businesslink.co.uk
Confederation of British Industry: www.cbi.org.uk
Employment Zones: www.dfee.gov.uk
Enterprise Zone: www.enterprisezone.org.uk
Federation of Small Businesses: www.fsb.co.uk
Forum of Private Businesses: www.fpb.co.uk
Institute of Directors: www.iod.co.uk
Lawyers for Your Business: www.lfyb.lawsociety.org.uk
Livewire: www.shell-livewire.org
National Federation of Enterprise Agencies: www.nfea.com
(Small Business Advise)
Prince’s Trust Business Division: www.wiredup.net
Trade Association Forum: www.taforum.org.uk

Training and Development

Careers Service: www.dfee.gov.uk/cidhome.htm
Investors in people (IIP): www.iipuk.co.uk
Learning Direct: www.lifelonglearning.co.uk
Modern Apprenticeships or National Traineeships: www.dfee.gov.uk/mapintro.htm
National Training Awards: www.open.gov.uk/dfee/nta/index.htm
Training and Enterprise Councils: www.tec.co.uk/map/index.html

Employing People
Advisory, Conciliation and Arbitration Service (ACAS): www.acas.org.uk
Commission for Racial Equality: www.cre.gov.uk
Disability Discrimination Act (DDA): www.disability.gov.uk
Equal Opportunities Commission: www.eoc.org.uk
National Minimum Wage: www.dti.gov.uk/er/nmw
New Deal: www.newdeal.gov.uk
Time Off for Study or Training: www.dfee.gov.uk/tfst.htm
Working Time Regulations: www.dti.gov.uk/workright

Other Business Issues

Benchmark Index: www.benchmarkindex.com
British Standards: www.bsi.org.uk
Companies House Services: www.companies-house.gov.uk
Customs and Excise: www.hmce.gov.uk
Direct Access Government: http://tap.ccta.gov.uk/dagii/welcome.nsf
Environment and Energy matters: www.etsu.com/etbpp
Euro: www.euro.gov.uk
Health and Safety Executive: www.open.gov.uk/hse/hsehome.htm
Inland Revenue: www.inlandrevenue.gov.uk
Insolvency Service: www.open.gov.uk/insolv_s/insolvhm.htm

Useful Publications
There are a variety of government publications which can be obtained free from:
DTI Publications Unit,
Tel: 020 7215 6024
Minicom: 020 7215 6740
e-mail: pubs.unit@dti.gsi.gov.uk
See Web site www.dti.gov.uk/publications for more information or phone the telephone number above.
Notes
Notes
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First Impressions
 Competitors Survey
Key: 1 = Excellent 2 = Good 3 = Acceptable 4 = Average 5 = Poor

Your
Pub
Outlet Names Your Competitors

Retail Environment A. B. C. Actions to consider

Outlet is visible on approach Signage, directions, illumination on

Clean up, remove old signs/stickers, drawback or

External appearance inviting remove curtains, clean windows and paint work

Chalkboards and signage in good condition Review information, resite, maintain

Atmosphere is clean and fresh Check ventilation, consider smoke filters

Toilets signed, clean and hygienic Re-site signs, new signage, cleaning rota, redecorate

Music/entertainment appropriate to outlet image Review music supplier to target customers

Single themed decoration appropriate to outlet image Review bric-a-brac and furniture catalogues

Bar servery and public areas clean and well maintained Check all areas, remove clutter, clean up

Service Style and Type Actions to consider

Easy access to bar Trace actual route from door to bar

Acknowledgment and friendly greeting Staff training in customer service

Staff appearance reflects image Review clothing and uniforms

Quick and efficient service Staff training in customer service, pouring

Acknowledge on leaving Staff training in customer service

Quality and range of products Actions to consider

Replace glassware, check glass washer, train
Clean and correct glass, beer looks good and tastes good staff, use glass cleaner, check sparkler in place

Drinks range reflects largest number of customers Review local market performance

Review range, snacks v meals, spicy v plain,

Menu visible and easy to understand, easy to order vegetarian, too many items

Quick and efficient service Staff training in food service skills, review till system

Food looks good, tastes good Staff training, visits to good outlets

Selling-Active Actions to consider

Staff understand products and make recommendations Product knowledge training

Staff actively sell Train staff on assessing customer needs

Selling Passive Actions to consider

POS, Chalkboards give clear message Renew chalkboard design

POS, Chalkboards positioned in customer eye-line Re-position

Product displays in hot spot Create displays, change weekly

Cold cabinets well stocked/displayed Stock with key brands in blocks

Good draft product layout founts lit Group like categories, lead brands in
hot spot
 Your Pub Survey
Interior/Exterior Condition New Old Need Re-Furb Comments
Public

Lounge

Restaurant

Function Room

Children's Room

Garden

Car Park

Toilets

Other

Do you have an entertainment licence? Yes No Do you have a children's certificate? Yes No

Activities Frequency Day Cost Sales

Quiz Nights

Live Music

Theme Nights

Bingo

Sports Teams

Disco

Karaoke

Pub Games

SKY TV

Other

Promotions Frequency How effective? (1 -5) Comments

Reduced Price

Scratch Card

Collector Schemes

Happy Hour

Food Offer

Special Events

How do you promote your Business? (rank in order of usage)

Direct Mail Posters Chalkboards Local Press ‘A’ Boards Leaflets Local Radio Other
 Competitor Pricing Survey
Pub

Standard
Ale

Lager

Premium
Ale

Lager

Budweiser

Bottled Beers
Beck’s

MGD
Alcopops

Bacardi Breezer

Smirnoff Ice

Wine (Glass)
Other

Cider (Pint)

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Glossary of Terms
NOTES TO HEADINGS ON PROFIT
AND LOSS ACCOUNT (All items exclusive of VAT)
Narrative Detail

TURNOVER
Sales - Wet Sales of Beers, Ciders, Wines and Spirits, Soft Drinks, Tobacco and Light Bar Snacks
(eg crisps, nuts, etc)
Sales - Dry Food Sales
Accommodation Income from room hire
Functions Income from functions held

COST OF SALES
Purchases - Wet Purchases of Beers, Ciders, Wines and Spirits, Soft Drinks, Tobacco and Light Bar
Snacks (eg crisps, nuts, etc) at cost
Purchases - Dry Purchases of food at cost

OTHER INCOME
Telephone Income Income received from payphones
Bank - Building Society Int. Interest received from bank deposit and building society accounts
Machine Income Net income from AWP/SWP, eg gaming machines, juke boxes, pool tables, etc

OVERHEADS
WAGE COSTS
Bar Staff Gross wages (inc PAYE/NIC/Family Tax Credit) re bar staff
Kitchen Staff Gross wages (inc PAYE/NIC/Family Tax Credit) re kitchen staff
Cleaning Staff Gross wages (inc PAYE/NIC/Family Tax Credit) re cleaning staff
Staff Drinks and Meals Drinks and food given to staff as detailed on stock report

PREMISES COSTS
Commercial Rent Rent payable to Landlord
Franchisee Fee 2% of net turnover to include, as per franchise agreement, accountancy costs,
stocktaking fees and enhanced business support from SNPE
General Rates Business rates payable
Water Rates Water charges for business
Cleaning Cost of cleaning materials and any rental or hire of related cleaning equipment
Insurance Cost of insuring buildings, fixtures, public liability and loss of profits
Equipment Hire Cost of equipment hire, eg glass washers, tills, etc
Machine Rental Cost of rental and licenses re gaming machines, juke boxes, pool tables, etc
Garden and Flowers Expenses relating to maintenance of garden, etc
Electricity, Gas & Oil Electricity, gas and oil charges for business
REPAIRS
Repairs and Renewals Cost of any repairs to existing property or equipment and renewals, eg light bulbs, etc

GENERAL ADMINISTRATION
Printing, Postage & Stationery Cost of printing letterheads, business cards, stationery and postage costs
Telephone Line rental and cost of calls for the business
Newspapers Papers bought for the business
Training costs Expenses relating to training of personnel

VEHICLE EXPENSES
Motor Expenses All motoring related costs re cars used for business, eg petrol, insurance, tax, etc.
Keep mileage records for business use for taxation purposes

ADVERTISING, PROMOTION AND ENTERTAINMENT

Advertising Advertising to promote the business or for staff recruitment
Entertainment Cost of live bands, karaoke, etc incurred to attract customers
Satellite TV Cost, eg rental charges for providing satellite TV
Licenses All licenses in connection with the business
Team Expenses Cost of any food or drink given free to pub teams, eg darts, pool, etc
Promotional Food and Drink Expenses relating to promotion and marketing

LEGAL AND PROFESSIONAL COSTS

Stocktaking Additional stocktaking costs not covered by franchise fee
Accountancy Cost of additional accountancy and taxation work not covered by franchise fee
Professional and Legal Fees Payments to Surveyors, Architects, Valuers, Solicitors, Payroll Bureaux

MAINTENANCE
Renewals of Small Kitchen Crockery, glass and other kitchen utensils
Equipment
Renewals of Uniforms
Menu Cards and Napkins

FINANCIAL CHARGES
Bad Debts Bounced cheques, forged bank notes, etc
Bank Charges Charges and interest related to operating the business bank account
Credit Card Charges Charges, eg commission, rental, etc re credit cards, swipe machines, etc

OTHER
Subscriptions Business related subscriptions
Sundries Usually low cost items not falling into any other expense category, or one-off
non-recurring costs
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