Developing your pub, hotel or restaurant can be quite a daunting challenge. You can grow your business in two ways. One being internally, looking at how you can get more out of the existing trade and the second is externally, expanding your business so that the revenue streams or even the number of revenue streams grow.

Internal growth

In most instances a proprietor will be trading a strong business and will have done so for quite some time, this in itself will create the problem of tunnel vision on the business and it is only with the help of objective external assessment that the business can be restructured to generate more income.

The things you should be looking at are:

• Increasing your margin, a growth in margin of even 1% will over the year have considerable impact on the bottom line N.O.P
• Look to increase your spend per head in all areas. If you take your spend per head from £10 to £11 in a particular department then you will increase your annual income in that department by 10%. Repeat this in all your revenue streams and your global turnover rises similarly.
• Look to develop your shoulder business, those weak trading times, off peak times. If you hold back your peak business slots and sell the shoulder times first you can always fill the peak times after.
• Up sell your product be seen to be offering considerably more at a slightly increased price. Package things together to give the impression of added value.

External growth

This development will apply when your existing business has topped-out and you are unable to draw more profitability and turnover out of the current trade. The dilemmas that this holds are substantial, do you move to larger premises, increase the size of your existing premises or add an additional unit to your portfolio? An error in judgement at this stage will have dire effects in the long term.

You must weigh up the costs involved and balance that against the profit you will generate. Remember it is the return on capital that is important, you must be able to achieve a minimum of 14%.

Do your research, check the concept and ere on the side of pessimism. Produce realistic financial forecasts. If you over inflate your forecasts then it is only yourself that you are cheating.

If you follow the same rules to those outlined in the start up section you will be on your way.

If you're in any doubt, then please contact us. It doesn’t matter how large or small the project. We are here to help and are totally professional in our approach to new clients, only offering our services and advice if it is really needed, adapting them to meet individual needs.

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