Don’t Let Your Business Plan Work Against You

I have seen hundreds of business plans over the past 30 years as a restaurant owner, executive and later as an alternative finance provider. Many restaurateurs seeking financing put a great deal of effort into their presentation and many worry more about form than substance. Unfortunately that can work against them.

This past week I received what looked like a well thought out and organized business plan. It covered all the classic bullet points that someone expects, but a deeper look revealed weaknesses and lack of solid business sense on the part of the new owners. Their primary drive was to “sell the deal” based on soft issues not real substance.

Professional financiers go to the facts, numbers and other details about the business, location, management, concept to piece together the real story. They are generally skeptical and are looking for holes, obstacles or anything that might be counter to what is in the plan. They want to look inside your head.

The business plan I just…