Those who play a huge part in the business world know that it’s all about earning money and maximizing profits. This is the reason why they’re going to need a rough estimate of just how much their expenses and revenue are going to be over a certain period as it will help them in making important decisions that are going to heavily impact their business. To help make this process easier, we have a collection of preformatted budget proposal templates that can easily help them out in these situations.
Business Budget Proposal Template
Restaurant Budget Proposal Template
Lay out your budget details for your restaurant business by downloading this practical and useful “Restaurant Budget Proposal” template. This file helps owners come up with the required budget by letting them properly estimate funds needed for a startup such as costs for equipment, rent or lease, food costs, employee training, and salaries. Just fill in your information or edit this standard proposal template by opening it in any file format of your choice.
Budget Proposal Template
Do not miss out on this customizable budget proposal template that lets you create a budget proposal without having to start from scratch. This proposal template in Word comes with pre-existing content and can be opened in any of the available file formats. Download it right now and get work done hassle-free!
Simple Budget Proposal Template
How to Prepare a Budget Proposal?
Preparing a professional, successful sample budget proposal involves you making use of a computer spreadsheet program that will allow you to organize all of your data and create an easy-to-read presentation. It will also allow you to place a brief description of every item that can be found within the list and justification for your budget request to give the reader more information on which to base his or her decision. So follow these steps to help you create a successful budget proposal:
1. Open a Spreadsheet Program
You can make use of programs such as Microsoft Excel to help you out with this task. Create columns for all of the items that you would like to include in your budget list. Next, create a second column that should contain the costs of each of these items and then create a row at the bottom to total the different amounts.
2. For a Yearly Budget, Create Columns for Each Month’s Expenses
You can do this by adding a final column for the yearly total. Across the bottom row of the spreadsheet template, calculate all of the expenses for each month.
3. Open a Word Program
Once you do so, create a document that will become your finished proposal. Then write the first section as the background to your upcoming cafe or restaurant. It should describe all of the previous successes and accomplishments of particular departments.
4. Format the Numbers on the Spreadsheet
Doing so will make sure the numbers are in bold. Then all you have to do is select the entire spreadsheet, copy it, and paste it into your word processing document.
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Preparing the restaurant budget proposal
The role of a restaurant budget proposal is to help you estimate the funds required to run different departments of the business. With today’s modern technology, preparing a budget proposal has become so much easier especially since there are things such as restaurant budget software that can help you out. Startup restaurants especially must include a budget in their business plan to make sure that their finances can cover everything. With the help of a budget proposal, restaurant owners can anticipate future expenses, set targets on how much they should be earning, and how much the business is going to need to stay competitive within the industry. So if you’re going to prepare a budget proposal, you’re going to need a restaurant budget software, projected sales figures, projected costs, and budget methodology.
Once you have all of that figured out, then the next thing you’re going to have to do is follow these steps:
- Making use of computer programs makes it so much easier for you to create your budget proposal. So it’s important that you look around before you acquire suitable budget software or you can prepare your worksheet if you would rather not use the software. This will include columns for projected sales and projected expenses on a weekly or monthly basis. Some restaurants use 13 periods of four weeks each or 12 months to monitor their budget. You can divide each of the columns to show details. Calculate the net income by subtracting all of the expenses from the income for the period and compare assets and liabilities.
- Estimate an approximate value for all of the sales that are to be expected in a given period based on customer traffic.
- Calculate all of your expected costs. These include everything from the fixed costs (insurance, rent payments, loans, etc.), semi-variable costs (employee salaries, utility bills, etc.) and variable costs (the costs of supplies and distribution, commissions, equipment repairs, etc.).
- Calculate just how much your restaurant is going to need to break even. You’ll want to know just how much you’re going to need to pay for all of the expenses before you can start making a profit. Your restaurant business plan must show your budget percentage and its allocation to each area of the business.
- Decide between the possible ways of preparing your restaurant budget. This would either be the ‘projections’ or ‘required profits’ method. With the projection method, projected profits are calculated based on both the projected revenues and costs. With the required profits method, it involves starting with projected expenses, calculating the required profits, and then estimating what is possible.
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Tips for an Effective Restaurant Budget
The restaurant industry means a lot of competition and everyone is trying to get as many customers as they can. It also has significant operational requirements when it comes to optimizing food inventory and predicting guest demand. This is the reason why every restaurant owner has to be very careful with the cash flow and prepare a proper budget. Here are some strategies you can implement in your restaurant operations to better control your restaurant’s cash flow and to help you prepare for potential cash shortages:
1. Develop Conservative Projections
Even you should know that you can’t control every financial event that will impact your restaurant, but you can plan for them in the event that they do happen. Establishing a working restaurant budget will require you to include the following assets:
- That cash that you already have on hand (money that’s both in the bank and your actual cash)
- The amount of money that you receive from paying customers, special events, and any other sources of income
- The forthcoming expenses for fixed costs (these include the electric bills, rent, and taxes)
- The forthcoming expenses for variable costs (such as employee payroll, kitchen supplies, and marketing)
Monitor just how much cash you have on hand on a weekly basis. Measure it relative to the expense reports that you know are going to come such as rent and regular food resupplies. If you happen to face cash flow shortages, you can proactively decide to decrease expenses or rely on financial tools that support cash flow, such as a merchant cash advance or low-interest credit line.
2. Optimize Your Inventory
Your suppliers may offer volume pricing for some items, but if these items are just going to sit in your kitchen before you can even use them, then you’re wasting valuable products as well as sacrificing cash flow analysis. Basically what you’re doing is throwing away the money that you’ve been working so hard to earn.
So make use of these strategies to help you optimize your inventory:
- Go through all of your inventory daily so that you won’t have to make any “emergency” purchases that cost more than you planned when key ingredients are out of stock.
- Implement processes to ensure your kitchen staff follows standards for several ingredients that are going to be used to create dishes.
- Get creative with happy hour promotions, specialty dishes, and craft cocktails that use ingredients that might have little or no use at all. With today’s modern technology, social media and even text messaging has made it very possible for you to design “flash sales” that will reach customers directly, and it can empower restaurants to promote products that they’ll benefit from by selling them off to these customers.
3. Design Deposit Policies Strategically
If your restaurant offers catering services for special events, then you’ll have to make sure that you design your deposit procedure strategically. This may involve a non-refundable deposit policy for the purpose of cancellations. If you have spare dining rooms, a basement, or outdoor space that has barely seen any kind of use, then you can use this to your advantage by expanding your business model to host special events such as cocktail hours, networking events, or even fundraisers. They may require some effort on your part, but it should generate a steady stream of cash flow you can rely on in times of reduced demand for your core restaurant business.
If you would like more information regarding restaurants, such as how you should start your restaurant, then you can go through any of our available articles that can help you get whatever information that you need.