Banquet Hall business plan for starting your own business
Banquet halls business has been a booming business for the past few years and it has proven to be profitable in many cities. The reason for the success of this business is the increasing population and the lifestyle change. Due to the trends in society and clients’ preferences, traditional marriages halls are converted into banquets and marques.
To start a business and make it successful, you need a strong business plan it. Whether you want business plan for event venue, business plan for event planning, speaker business plan, music festival business plan or business plan for a funeral home, this article will make it easy for you to write a business plan.
Just like a wedding planning business plan, we’ll tell you all there is to know about starting this business. In this article, we will guide you on how to write a business plan for banquet hall so that you can understand everything about how to start a banquet hall business. Through it, you will also be able to understand the basic concepts around franchise business planning.
2.1 The Business
The Dynasty Banquet Hall will be registered and insured in Denver, Colorado. This location is ideal for a number of reasons, the most important of which is the presence of a large residential community. If you’re wondering how to open a banquet hall and run it successfully, you can consult this template or other sample business plans for banquet hall available on the internet.
2.2 Management of Banquet Hall Business
In all the banquet hall business plan sample, you will find the details about the management of a business. In this article, we will be discussing the complete management of a banquet hall and banquet hall requirements.
To manage the business, owner James Clark will hire two managers and an accountant. The managers will look after sales and operations respectively while the accountant will be responsible for bookkeeping.
2.3 Customers of Banquet Hall Business
In this business, which is closely related to a business plans for banks, the customers will be from a range of different categories. These will include:
- People who want to arrange birthday parties
- People who want to arrange marriages in the banquet hall
- Students who want to organize seminars and business meetings
- To host professional seminars
- Customers who want to arrange a family reunion
2.4 Business Target
The target of Dynasty Banquet Hall is to produce great revenue and make it a profitable business. This target will be broken down into the following business goals:
- To provide the highest quality venue for event planning and wedding within the Denver residential area
- Expanding the business to other areas and cities of Colorado
- To recover the investment within the next 2 years
3.1 Company Owner
James Clark is the owner of the business. He worked hard throughout this life to collect investments for his business. He was interested in opening a banquet hall since his teens. After years of research on how to start an event venue and consulting numerous banquet hall business plan template available online, he’s ready to step into this business.
3.2 Why the Banquet Hall Business is being started?
In every sample banquet hall business plan, it is important to mention why the business is started. While giving it a thought, James wanted to invest in some businesses that produce a good amount of revenue. With minimum investment, he has planned to start a banquet hall in a dense and popular area with high rent costs. At the start, his banquet hall will target smaller family gatherings and community events and later on, he will try to tap the corporate event market.
3.3 How the Banquet Hall Business will be started?
The first and most important step in starting this business is to calculate the demand for a banquet hall in the area you are planning. If you’re planning to do this, your first step will be to do research and check out the competition of banquet halls in the market.
Step2: Make a business plan
After you have made research on the location and size of your banquet hall, the next step is to make a business plan. A business plan is a roadmap that identifies the purpose, target market, and resources for your business. It includes your financial plans such as taxes, insurances, advertising, and other required costs.
Step3: Finance the operations
The amount of investment needed to start a banquet hall is based on detailed calculations about the expenses. To start a smooth business, it is important to make all the calculations before practically doing the things. The major costs will be purchasing the building or leasing it. In addition to it, the flooring, interior, decor, lighting, and restrooms are also included. Financial options include a loan from the bank, personal finances, and savings.
Step4: Licensing and Registration
The cost for licensing and registration depends on the area you have chosen. In addition, the local health inspector will remain a constant part of business operations. To ensure the quality of food, health departments will have a special interest in the business.
Step5: Banquet Hall decor
To make it beautiful, you will need to hire an interior designer for your hall. A banquet hall should have a professional and clean design that attracts customers. It should be according to the taste of each customer. Whether you are developing your designs or hiring a professional to get the job done, you need to focus on the mixing and matching of colors.
Step6: Hire Qualified Staff
Experienced and highly trained staff is also important to run a smooth business. When you develop your staff, make an employee policy that outlines all the responsibilities and operations of the staffing team. It will help in running the operations of the banquet hall without any problem.
|Research and Development||$25,000|
|TOTAL START-UP EXPENSES||$381,500|
|Other Current Assets||$231,000|
|Start-up Expenses to Fund||$381,500|
|Start-up Assets to Fund||$967,100|
|TOTAL FUNDING REQUIRED||$1,348,600|
|Non-cash Assets from Start-up||$1,353,100|
|Cash Requirements from Start-up||$372,000|
|Additional Cash Raised||$48,000|
|Cash Balance on Starting Date||$32,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$46,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,348,600|
|Loss at Start-up (Start-up Expenses)||$388,500|
|TOTAL CAPITAL AND LIABILITIES||$1,805,100|
If you know how to write a business plan for a banquet hall, you will need to include all the services the business will provide. While starting a banquet hall, you need to list down all the services that the banquet hall will provide. The services that a banquet hall provides also depend on the banquet hall building plans.
In writing a business plan for a banquet hall, we have mentioned the following services, just like these provided by Dynasty Banquet Hall.
The buffet is a popular banquet service offered to a large number of attendees. In the buffet, there are several food items all placed in line and guests serve themselves by passing through the table. It is a convenient way where an individual can choose what to eat.
Reception is a popular term where people come together, chat and eat. Dynasty Banquet Hall will provide the services of reception where people gather for a special occasion, be it wedding, birthday, or a baby shower.
Dynasty banquet halls offer food stations where many food stalls offer various courses, cuisines, and dishes to the guests. Often these food stations are managed by the chefs who prepare food instantly in front of the guests. These food stations include desserts, pasta bars, and sushi stations.
If the food is already set on the table before your arrival, it is known to be the pre-set arrangement. We here at Dynasty provide this service which is mostly applicable with salads, desserts, and beverages.
Marketing Analysis of a Banquet Hall
In the banquet hall marketing plan, we make a market analysis of the business we are going to start. The marketing analysis run by the Dynasty Banquet Hall management; it was made sure that the business will be successful. It is because the location of the banquet hall is in a densely populated area – and there is little competition with other banquet halls. In this business plan for starting a business, we will see the market trends and market segmentation for our banquet hall business.
5.1 Market Trends
If we look at the banquet hall business plan pdf, and banquet hall business plan, we can see that the trend of banquet halls has risen over the last five years. People are now more attracted to celebrate their big days with their family and friends in a banquet hall instead of their homes. From 2021 to 2028, the event industry is expected to experience a CAGR of 11.2%
5.2 Marketing Segmentation
The next important part of this banquet hall business plan sample is the discussion of the market segments that we will be doing business with, and they are the following:
UK Start-Up Visa Business Plan
With time, the trends of indoor and outdoor weddings have increased. People now prefer banquet halls and marques for organizing a wedding party. So, couples who want to tie the knot will be our primary market segment.
Our second major customer group is parents who are looking to throw birthday parties to their kids.
Our third customer group will be organizations who are looking to arrange seminars and conferences in Denver.
5.2.4 Corporate Sector
Our fourth customer group will be corporate sector, looking to arrange seminars and conferences in Denver.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
- To provide the highest quality venue for event planning and wedding within Denver.
- Providing exceptional services to our customers
- Establishing a reputable brand around the business
- Having more than 90 percent customer satisfaction
- Expanding the business to other areas of New York
- To recover the investment within the next 2 years
5.4 Product Pricing
If you ask yourself I need a business plan to open a banquet hall, you should also include the pricing in it. We will charge a premium price for our services. This will be done because there is not a lot of competition in the area and people will rent our banquet halls at even higher prices.
If you know how to open a banquet hall, you should also know that no business can be successful without a marketing strategy. The more you reach out to people and tell them about your business, the more successful business you will have at the end of the day. Before starting the business, James worked on it and made a detailed analysis of the market to make the strategy. He has determined that running a complete competitive analysis and making a sales strategy are the most important things to make the business a success.
Like in the banquet hall business plan free sample, we will shed some light on these aspects of the business.
6.1 Competitive Analysis
- After a complete analysis of the market, it has been determined that there are little to no competitors in the area.
- It has been found that the companies and businesses providing the service in the area are overcrowded by customers and do not provide credible and dependable services.
- There is a high demand for the banquet hall where people can organize and carry out their events.
6.2 Sales Strategy
- James will use all available advertisement and promotion channels to promote the business.
- The quality of the food and interior will always be prioritized to maximize customers satisfaction.
- The company will heavily use social media marketing to advertise and promote its services and will target social media users residing in Denver area.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|TOTAL UNIT SALES||15,000||15,900||16,854|
|Unit Prices||Year 1||Year 2||Year 3|
When starting a banquet hall, personal plan is important. It includes the number and detail of the staff that will be required to run a banquet hall. Now, we will be talking about the manpower required to make this sample business plan banquet hall a workable business.
7.1 Company Staff
James Clery will be the owner and CEO of the business, and the following people will be needed to run the business:
- 3 managers for operations and marketing.
- 10 chefs.
- 2 interior designers.
- 2 technicians.
- 10 helpers.
- 3 guard.
- 2 reception clerks.
- 2 accountants.
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
During the making of a financial plan for a banquet hall, it is important to know how much does it cost to build a banquet hall and what is the cost of owning a banquet hall. Here is an overview of all the costs involved in starting the business.
- The cost of leasing or renting a location to establish the business
- The salaries of the employees
- The cost of buying the furniture and equipment for the kitchen
- The money that will be needed for the marketing of the business
- The money needed to make a website and promote it
- The money needed for the interior of the banquet hall
- The cost needed for licensing and registration
- The money needed for the food inspection department
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.15%||8.24%|
|Long-term Interest Rate||8.37%||8.46%||8.49%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$131,500|
|Average Per-Unit Revenue||$232.00|
|Average Per-Unit Variable Cost||$0.65|
|Estimated Monthly Fixed Cost||$163,400|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$8,078,000||$9,637,520||$11,811,283|
|TOTAL COST OF SALES||$8,078,000||$9,637,520||$11,811,283|
|Gross Margin %||3.37%||6.24%||6.55%|
|Sales and Marketing and Other Expenses||$137,000||$148,000||$156,000|
|Total Operating Expenses||$312,300||$337,900||$362,080|
|Profit Before Interest and Taxes||($30,300)||$304,036||$466,256|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$14,000||$15,120||$16,330|
|SUBTOTAL CASH FROM OPERATIONS||$66,000||$71,940||$77,695|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$67,000||$72,000||$78,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$63,000||$66,000||$69,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$63,000||$68,040||$73,483|
|Net Cash Flow||$19,000||$21,000||$22,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$287,000||$321,440||$361,299|
|TOTAL LONG-TERM ASSETS||$24,000||$26,880||$30,240|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$303,700||$328,160||$369,180|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.12%||2.35%||2.60%||2.40%|
|Total Current Assets||149.00%||152.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||94.00%||96.54%||99.24%||97.80%|
|Profit Before Interest and Taxes||41.00%||42.11%||43.29%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.00%||74.50%||75.00%||75.00%|
|Pre-tax Return on Assets||94.60%||99.33%||104.30%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.01%||34.03%||35.09%||N.A.|
|Return on Equity||56.00%||57.74%||59.53%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15||16||16.3||N.A.|
|Total Asset Turnover||2.4||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$239,000||$252,384||$266,518||N.A.|
|Assets to Sales||0.86||0.87||0.87||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- Is a banquet hall profitable?
If you have a well-written business plan for a banquet hall, and you make efforts to run your business smooth, then it can turn out to be more profitable than you think.
- Is the marriage hall business profitable?
Yes, the marriage hall business is profitable because, with the change in the lifestyle, more people are now attracted to organize their weddings in banquet halls. You should just know how to start a banquet hall efficiently, and you can make a profit out of it.
- How do I start a banquet facility?
There are certain steps you need to take to start a banquet facility. With proper banquet halls business plans, you can start your banquet hall with much ease.
- How much does a banquet hall cost?
It depends on the location, size, and some other factors. See the business plan for a banquet hall to get a detailed idea about the cost.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.