5 Year Plan

[wsonner]

Hi. I'm working on a business plan/5 year plan and was wondering if anyone has done these and would be willing to share with me.  I know this might be sensitive but I am hoping there are some out there who are interested in playing a mentoring role with me as I ramp up Pizza Underground here in New Hampshire.  Feel free to PM me!

Wes

[The Dough Doctor]

Wes;
Your local SBA should be able to provide you with all the information you need. Many times they can point you to retired business execs that that volunteer for them and are more than happy to assist you.
Tom Lehmann/The Dough Doctor

[PizzaPrint]

RestaurantOwner.com (no affiliation) is also a good resource.  Although not specific to the Pizza industry, it has a ton of info in their membership which is a very reasonable cost.

[wahoo88]

Historically speaking, 5 year plans haven't been the most successful.  Maybe you should pick a different number.   

[The Dough Doctor]

I agree, with today's economy and uncertainty, a 5-year plan is pretty optimistic. I use a 3-plan to keep me pointed in the right direction.
Tom Lehmann/The Dough Doctor

[TXCraig1]

I think it's good to know where you want to be in 3 or 5 years and have a well developed (evergreen) idea how you are going to get there, but your plan for the next 12 months is far more important.

[wsonner]

Thanks for the good advice!  5 years always felt like I was going to have to just make stuff up.

[gabaghool]

You'd bee surprised how much stuff is faaaar off in a 12 month plan.  I know business plans are the holy grail........but, me personally, in someways they are a waste of time....at least if it is very detailed.  I know its heresy....but other restaurant owners, successful ones, told me so....and it turned out to be true.

[wsonner]

Well, when you're looking for funding they are a necessary evil.

[TXCraig1]

There is nothing evil about plans. They are essential tools. Is it possible to be successful without a good plan? Of course. Do plans increase your chances of success? Heck yes. P⁶ - Prior Planning Prevents Piss Poor Performance. When looking for funding, I would suggest not making jokes that suggest you don't value planning.

Just because actuals come in different from plan (even faaaar off) doesn't mean planning is not important or that the plan itself was not valuable. For one thing, it should cause you to ask yourself why things didn't happen as you planned and how that is going to effect future plans. Also, you shouldn't make a plan at the beginning of the year and consider it set in stone and continue to blindly manage from it (or do like many people do - throw it in a drawer and forget about it). A plan should be evergreen - meaning you update it monthly to reflect changes in the business you didn't expect and things you decide to do differently. You should also update your evergreen plan with actual results at the end of the month. Evaluate whether the forward looking part of the plan is still reasonable given results to date. Keep a copy of your original plan, so you can properly evaluate the year as a whole, but manage from your evergreen plan. Another handy tool is a 15 month rolling plan - the most recent 3 months of actual results and following 12 months of plan, updated monthly.

As for the value of plans, I've seen very successful businesses that almost bankrupted themselves because they didn't spend enough time planning - cash planning in particular. They may have exceeded their operating plan by a large margin, but revenue does not equal cash, capex and working capital don't show up on the P&L, and cash is king. You need to plan your balance sheet an cash flow in addition to your P&L. Your working capital/cash plans are probably the most important - they certainly are to anyone looking to provide you with funding.

[wsonner]

Perfectly said!!

[gabaghool]

I can't deny anything said in favor of business plans.....maybe they are less important in a food service business.   I had to write one for a SBA loan, so I know they are important for funding.

Simply my opinion and opinion of others in this business.