Emerging chain growth is hard work and for most entrepreneurs requires a whole new perspective and new levels of planning, process, and resources.
Growth requires capital and capital source accountability. Growth financing can be self-funded, come from friends and family, commercial banks, non-banks, and accredited investors. All of these capital sources want to see if a business is well run, profitable, and has the necessary systems in place to grow. Too much growth, too early, is worse than no growth at all.
CSN focuses on brand, costs, and revenue because these three disciplines directly impact the bottom line and capital source accountability. If you don’t have a defined, differentiated and scalable concept, aggressively manage costs, and consistently grow top-line revenue no one is going to invest because there will be no sustainable ROI.
Restaurant entrepreneurs are unique individuals. For CSN to be a fit and successful, you have to determine what they want to do, where they want to go, and if they’re open to help. Here are ten questions that might be helpful in determining whether CSN is feasible.
1. Most restaurant entrepreneurs have key areas of interest and focus: Concept Development, Financing, Operations, Marketing, Human Resources. Find out what they are today and for the near future!
2. What keeps them up at night? Growth, Debt, Human Resources, Revenue, Costs, Profitability, Exit Plan
3. Which current restaurant concepts and/or units need to be closed, sold, or expanded outside of the local market?
4. How does the entrepreneur plan to finance the next stage of growth? Self-fund, Bank Financing, Private Investors, Licensing/Franchising
5. Are there written SOP guidelines in place for each concept?
6. How is central purchasing and distribution currently structured and managed for all concepts?
7. How is central marketing currently structured and managed for all concepts?
8. How is technology currently structured and managed for all concepts?
9. Is the entrepreneur comfortable with outsourcing key concept disciplines?
10. What is the entrepreneur’s current exit strategy?