About Milton Zlotnick Expertise 30 Years CPA experience and currently preparing business plans for existing and startup companies including numberous internet and ecommerce firms. Visit www.plan4biz.com.
Experience Milton Zlotnick was the founding and managing partner of a mid-size CPA firm in NYC before joining Plan4Biz.com, LLC. He served for a number of years on the New York State Society of CPAs Financial Planning Committee. He is currently a Community Leader and Host for America on Line's, Business Know How division providing advice on business plan preparation. Keyword (BKH). He has taught Business Plan Preparation at the College of Staten Island (Options Program), New York. In addition he has conducted numerous seminars for SCORE (Sponsored by the U.S. Small Business Administration). He conducts seminars concerning Internet Commerce. The most recent was given at The New York Public Library Science and Technology Center in Manhattan.
Organizations New York State CPA Society
Publications BPlans.com contains over 400 articles.
Expert: Milton Zlotnick Date: 1/23/2001 Subject: Opening a restaurant/bar
Question I am a fellow expert at allexperts.com, at legal/misc legal.
We went to the state auction in Detroit, Michigan, and got what we hope will turn out to be a good deal on a former bar. It was once a very popular place, with a dance floor, but the owners got arrested. It was vacant for over 5 years. There is a hole in the roof, and rain and snow have come in, as well as thieves and vandals. There is some kitchen equipment.
The location is outstanding, on a major road just before another major road forks off, and has adequate parking. We want to open a restaurant/bar.
My wife is an outstanding chef with training, and also has great skills in supervising workers. I am a lawyer and therefore better suited to the paperwork end of things.
This is going to require a loan. A loan will require a business plan, which will require us to make some sort of projected financial statement. We need to figure out how much to ask for on a business loan.
Well, of course, I don't have any idea how much it will cost to fix up the place, except that one guy wanted to charge us $18,000 for a new roof. Then, I don't know how we would figure out our costs to supply the restaurant and operate it, with any precision. But costs would be easy, compared to projecting the revenue. How do you predict how many customers will come in, and how much they will order? Do businesses just make that up?
I am a reasonably fast learner, but I have no experience in running a restaurant or doing this kind of financial planning.
Questions:
1. Will I be better off paying someone with experience to figure this out, or is this something that is not that difficult for an intelligent novice?
2. If I were to pay for it, how much would such a service cost?
3. If I were to pay for it, how would I locate a good person to do it? What do the yellow pages call someone who does that?
4. If I were to do it myself, where would I find a clear guide on how to do it? Is there anything free on the internet? Perhaps a well-known book I could find at a bookstore?
Thanks for your time.
Answer I would suggest you visit a local SCORE or SBDC office in your area. The services are free and confidential. Call the US Small Bus Adm for a location near you. They will help you with a business plan. Visit www.bplans.com for a sample business plan similar to that which you wish to open. Visit your public libarary and have them provide the demogrphics in your are. Also the census bureau has information for your area that could prove helpful. Go to www.score.org and find a counselor on the internet who has restaurant/bar experience. E-mail him your questions and he will respond quickly. Speak to local bankers. They have experience with similar businesses in your are. If you wish to pay for an inexpensive plan (about$500) but effective call Anthony Fellin CPA 718 948 4471.
Best of Luck
Milton Zlotnick
Plan4biz.com LLC
