BUSINESSPLANHOSPITALIT Y BUSINESSPLAN FOR THE HOSPITALITY INDUSTRY INGRID BERGÉ, TON LENTING & JURIAN VELTHUIS
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ColofonBusiness plan for the hospitality industry PHOTOGRAPHY1st edition, 2018ISBN 9789052112824 Martijn van Dam Fotografie, Zoetermeer Ronald van Wieren Fotografie, AmsterdamPUBLISHER PHOTOGRAPHSSVH FG Food Labs (*2016), Rotterdam Het Hooihuis, RoosendaalAUTHORS Hotel New York, Rotterdam In de Karkol, MaastrichtIngrid Bergé, Lieshout Jeroen Robberegt, SVH Meesterkok (Chef) and executive chefTon Lenting, Ubbergen Katoen, GoesJurian Velthuis, Breda Mama Kelly, The Hague Menzing, HaaksbergenLANGUAGE EDITING Miele Experience Centre, Vianen Pelle’s, DeurningenEsther Horsten-Theunissen, Middelaar Pont 13, Amsterdam Stads-koffyhuis, DelftCONTENT EXPERTS ’t Voorhuys, EmmeloordBarth Horstenback, owner of In de Karkol LAYOUTDennis and Toyna Menzing, owners of Menzing & MenottiEsther Horsten-Theunissen, copywriter, RegelRaak DropOuts Amsterdam, AmsterdamFerry van Winden and Roland Dijkman, owners of Stads-koffyhuisFNV Horecabond, AlmereKoen and Lisette Bakker, owners of Het HooihuisRon and Vivian Diephout, owners of KatoenRoy Spekhorst and Wendy Amweg, owners of Pelle’sTon Lenting, owner of Lenting and PartnersTwan Hakvoort and Renee Hellendoorn, owners of ’t VoorhuysCOPYRIGHT© Copyright 2018 SVH, ZoetermeerSVH has endeavoured to take the utmost care in compiling this instructional material. Nevertheless, the possibilityof inaccuracies or mistakes / typesetting errors in the book cannot be completely excluded. SVH and the authors andprinter disclaim liability for any damage resulting from actions taken on the basis of this publication.Alle rechten voorbehouden. Niets uit deze uitgave mag worden verveelvoudigd en/of openbaar gemaakt doormiddel van druk, fotokopie, microfilm, digitale bewerking of op welke andere wijze dan ook, zonder voorafgaandeschriftelijke toestemming van de uitgever.All rights reserved. No parts of this book may be reproduced in any form without written permission from thepublisher.
BUSINESS PLANFOR THE HOSPITALITY INDUSTRY
Foreword Ingrid Bergé and Jurian Velthuis If you search the Internet for the words “business plan for the hospitality industry”, you'll find countless websites that provide the structure for writing a business plan. For many years, we've been providing students in hospitality education with guidance on writing a business plan. Over all that time, those of us working in hospitality education have missed a book that offers more than the structure you can find on any website. Besides a proper explanation of all the facets of the business plan, in this book present-day hospitality entrepreneurs speak about their experiences. What makes this book special is the combination of theory and input from the sector. This would never have been possible without the contribution made by Ton Lenting. The discussions with him were exceptionally inspiring. The contents of the qualification file \"Manager/Ondernemer Horeca en Meewerkend Horeca Ondernemer\" (Hospitality Manager/Entrepreneur and Collaborating Hospitality Entrepreneur) (valid as of 01-01-2016) are fully covered in this book. The economic side of the Hospitality Manager/ Entrepreneur study programme concludes with the examination Kerntaak 1 (Core Task 1). This examination consists of writing a business plan, making a pitch, and a panel discussion. If you carry out all the assignments in this book, you'll be well-prepared for this examination and you'll actually have a good business plan. The book has been written for hospitality students, but also for present and future hospitality entrepreneurs. We assume that the person using this book has a basic knowledge of the subjects marketing, business economics, business administration, human resources management and law. We wish you the best of luck in writing your business plan. July 20174 Foreword
ForewordTon Lenting, SVH Meesterschenker (Master Bartender)Shortly after I'd published my book (in Dutch) Eredivisie Horeca (PremierLeague Hospitality), in 2015, I was approached by Jurian Velthuis andIngrid Bergé with the question of whether I'd like to work on this book:Business plan for the hospitality industry. Naturally, I wanted to do that!I'm genuinely interested in business and entrepreneurs in the hospitalityindustry. They stimulate the economy, create jobs and - most importantly -their hospitality businesses add colour to life and society. However, you can'tjust decide to become an entrepreneur. You have to be familiar with manydifferent markets and keep up to date with the latest knowledge.Together with my wife, Mieke, I've run various hospitality businesses.I've also followed various study programmes. I started with the teacher-training programme, after which I followed the business administrationprogramme and all conceivable SVH study programmes. I like to share theknowledge and experience I gained in practice and at school with otherpeople. Positive experiences are instructive in this, but the mistakes I madeprovide valuable lessons too. Consequently, I think it's fantastic that youngentrepreneurs were also willing to work on this book. They made it possibleto support the theory with real practical examples. Their openness andhonesty is unique and extremely valuable. The seven entrepreneurs namedin this book serve as a wonderful example for entrepreneurship in thedynamic hospitality sector.The sector benefits from figureheads and I therefore support the new titleSVH Meesterhorecaondernemer (Master Hospitality Entrepreneur). Thistitle guarantees the highest level of professional competence in the field ofbusiness in the hospitality industry. May this book therefore be a source ofinspiration!July 2017 Foreword 5
Reader's guide As an up-and-coming hospitality entrepreneur, you have to be able to write a business plan. You show in that plan that you have sufficient knowledge of marketing, business economics, business administration, human resources management, and law. All these subjects are briefly covered once again, so that you can incorporate them in the business plan. You'll be helped in this by inspiring interviews, quotes, and tips from professionals in the sector. This book focuses on all the chapters you'll need to include in your business plan. In each case, explanations are provided of the parts that have to be described and the questions you need to ask yourself as an entrepreneur. If you rewrite all the paragraphs for use in your own plan and you carry out all the assignments, your business plan will almost be ready! ADVANCED ORGANISER Each chapter begins with an advanced organiser. This instructional format provides an overview of what you can expect in the chapter. At the same time, the points in the advanced organiser form a handy checklist! INTERVIEWS AND QUOTES In interviews and quotes, entrepreneurs from the sector talk about entrepreneurship and their experiences with it. They give you tips, insights and advice which you can use to become better in your profession. STREAMERS Printed in blue italic letters in the page margins, streamers are pieces of text that require extra attention. TIPS Throughout the book you'll find tips printed in a dark-blue circle. These tips are from entrepreneurs who have helped with this book. IN PRACTICE Practical examples are provided in the ‘In practice’ instructional format. These practical situations come straight from the shop floor of entrepreneurs in the sector. ASSIGNMENTS You'll find various assignments throughout the book. Once you've completed all the assignments, you'll already have finished your final project: the business plan to complete your course!6 Reader's guide
Useful websitesYou can use the following Dutch language websites when carrying out theassignments:\\ Statistics Netherlands: www.cbs.nl\\ CPB Netherlands Bureau for Economic Policy Analysis: www.cpb.nl\\ NBTC Holland Marketing (formerly the Netherlands Board of Tourism & Conventions): www.nbtc.nl\\ Banks. The Rabobank website not only shows general developments but also developments per sector: www.rabobankcijfersentrends.nl\\ Online environment for entrepreneurs: www.dezaak.nl\\ Hospitality trends and inspiration: www.foodinspiration.nl\\ Hospitality trends and ideas: www.horecatrends.com\\ Everything about food service: www.foodstep.com\\ Information per municipality: www.oozo.nl (facts)\\ Figures from the sector: www.horecadna.nl (not freely accessible)\\ Website of the biggest hospitality sector organisation: www.khn.nl\\ Discover behavioural styles: www.denkerofdoener.nl\\ Information on jobs in the hospitality industry: www. referentiefunctieshoreca.nl\\ Tips for starting entrepreneurs: www.horecatweepuntnul.nl Useful websites 7
Contents Foreword 4 Reader's guide 6 Useful websites 7 Entrepreneurs speaking 12 1. Summarise and present Introduction 30 1.1 The summary 30 1.1.1 Concept 30 1.1.2 Location 31 1.1.3 Motivation 33 1.1.4 Financing 33 1.1.5 Time frame 33 1.2 The pitch 34 2. Introducing the entrepreneur Introduction 38 2.1 Personal details 38 2.2 Personal qualities 40 2.3 Personal role 44 2.4 Personal motives and ambitions 45 2.5 Present income – Personal 46 3. Analysing the market Introduction 52 3.1 Developments and trends throughout the country 52 3.1.1 Political and legal developments 54 3.1.2 Economic developments 55 3.1.3 Demographic developments 568 Contents
3.1.4 Technological developments 57 3.1.5 Social developments 583.2 The demand side 64 3.2.1 Size of the catchment area 65 3.2.2 Residents in the catchment area 65 3.2.3 Location of the business 67 3.2.4 Market segments and target groups 723.3 The supply side 75 3.3.1 Other hospitality businesses in the catchment area 75 3.3.2 Oversupply or undersupply 76 3.3.3 Competitors 77 3.3.4 Estimate of the sales 78 3.3.5 Strengths/weaknesses analysis and positioning 79 3.3.6 Opportunities/threats analysis 813.4 Reflection 824. Working out the business formula Introduction 864.1 Legal form of enterprise 87 4.1.1 Sole proprietorship 87 4.1.2 General partnership 88 4.1.3 Limited partnership 90 4.1.4 Private limited company 914.2 The type of business 934.3 The opening hours 944.4 The Marketing mix 96 4.4.1 Place 96 4.4.2 Product 98 4.4.3 Core activities and sideline activities 101 4.4.4 Price 102 4.4.5 Presentation 108 4.4.6 Staff 114 4.4.7 Promotion 1214.5 Special features 1264.6 Mission 1274.7 Vision 1284.8 Strategy 1294.9 The SWOT analysis 130 Contents 9
5. Determine procurement policy and stock policy Introduction 134 5.1 The ordering procedure 135 5.2 The stock costs and ordering costs 139 5.2.1 Stock costs 141 5.2.2 Ordering costs 141 5.3 The product choice and supplier's choice 142 5.3.1 Vendor Rating 146 6. Drawing up a financial plan Introduction 154 6.1 Calculating the sales 155 6.2 The investment budget 159 6.2.1 Fixed assets 160 6.2.2 Current assets 161 6.2.3 Liquid assets 162 6.2.4 Opening costs and start-up expenses 162 6.3 The financial budget 165 6.3.1 Owner's equity 165 6.3.2 Long-term loan capital 165 6.3.3 Short-term loan capital 169 6.4 The opening balance sheet 172 6.5 The operating budget 175 6.5.1 Sales 177 6.5.2 Procurement 178 6.5.3 Gross profit 178 6.5.4 Costs 178 6.6 The liquidity budget 186 6.6.1 Balance of liquid assets in start-up period 188 6.6.2 Receipts from sales 189 6.6.3 Outgoings 189 6.6.4 Balance of liquid assets 190 6.7 The key indicators 192 6.7.1 Current ratio 192 6.7.2 Quick ratio 193 6.7.3 Working capital 194 6.7.4 Cashflow 195 6.7.5 Solvency 196 6.7.6 Profitability of the owner's equity 19710 Contents
6.7.7 Profitability of the loan capital 200 6.7.8 Break-even sales 2016.9 The appendices 2037. Working towards the opening Introduction 2107.1 Things you have to arrange yourself 210 7.1.1 Contact with financiers 210 7.1.2 Premises 210 7.1.3 Recruitment and selection of employees 212 7.1.4 Contact with suppliers 212 7.1.5 Promotional activities 2137.2 Government rules 214 7.2.1 Chamber of Commerce 214 7.2.2 Notarial deed 214 7.2.3 Land-use plans for business location 214 7.2.4 Licences 216 7.2.5 HACCP plan 218 7.2.6 Hazard Identification and Risk Assessment 218 7.2.7 Other 2198. Implementing the plan Introduction 2448.1 The goals for the first quarter 2248.2 The available budgets for purchases and staff 2258.3 Monitoring set goals 227 8.3.1 Business-economic key indicators 228 8.3.2 Menu engineering 2308.4 Relationship marketing 2328.5 Networks 2348.6 Name recognition and image 237Index 240 Contents 11
O.Entrepreneursspeaking “ ASK EXPERIENCED ENTRE- PRENEURS WHAT THEY'VE LEARNED OVER THE YEARS AND THEIR STORIES WILL BE ENDLESS. YOU SOME- TIMES LEARN TO RUN A BUSINESS BY FALLING OVER AND PICKING YOURSELF UP AGAIN AND SOMETIMES FROM THE STORIES OF OTHERS. THIS BOOK IS THEREFORE PEPPERED WITH STORIES OF ENTREPRENEURS, ENTREPRENEURS WHO CAN AND WANT TO TALK ABOUT THEIR EXPERIENCES AND ARE PLEASED TO GIVE PRACTICAL TIPS.” Entrepreneurs speaking 13
Stads-koffyhuis Their business has existed for more ADVICE TO STARTERS than half a century and is an institu- tion in Delft: Stads-koffyhuis. Ferry Ferry and Roland attach a van Winden and Roland Dijkman high value to good employ- took over the business from their ment practices. That means employers in 2011. This took place being good for your employ- discretely and most customers didn't ees and offering them oppor- even realise that Stads-koffyhuis tunities and possibilities. This had changed owners. Ferry and was impressed on them by Roland think that's actually one the previous owners, Gé and of the nicest compliments they've Patricia Kleijweg, their former had in recent years. Their business employers. A lot of attention is comparable with the renowned is paid to training pro- glass cola bottle, which has truly grammes and courses, and developed over the past few the team of employees is decades and definitely changed with made up of people of various the times. However, it happens as a ages and with different train- matter of course, without customers ing backgrounds, from uni- being aware of it. versity educated to people with a physical or mental disability. On the one hand, the two men see this as their social responsibility and, on the other hand, this varied collection leads to open communication and a pleas- ant atmosphere. Roland: “Our team is a reflection of society, just like our cus- tomers. Each employee has to be approached in a different way, which means you always have to think about that. That keeps you alert as a manager.”14 Entrepreneurs speaking
Stads-koffyhuis is in the inner city who shows customers to availablealong Oude Delft, one of the canals seats, so they're hardly ever ‘turnedwhich are so characteristic of Delft. away’. The biggest challenges forIn the summer, a large boat serves the entrepreneurs are managingas a terrace. When the terrace boat the bustle and ensuring sufficientis moored at the front door the speed in the business, while remain-business is open until eight p.m. In ing unbelievably hospitable. Never-the winter, the doors are closed an theless, Roland and Ferry also payhour earlier. As the name suggests, a lot of attention to marketing andStads-koffyhuis focuses mainly promoting their business. And withon daytime customers: a good success, because the slogan “Soonercup of coffee, the most delicious or later you discover Delft's favouritesandwiches in the Netherlands, place” has become a saying farsociable tea drinkers (high tea) beyond the city.and simple evening dishes, such assalads, pancakes, hamburgers andfood on skewers. They are truly themost delicious sandwiches in thecountry, because Stads-koffyhuishas won national prizes on severaloccasions. Experience has shownthat taking part in competitions isfun and it keeps you focussed.The business has 120 seats andthere's been an enormous bustle inthe business for years. It has around130,000 visits from customers annu-ally. On busy days one member ofstaff is on duty as a “flying goalie”STADS-KOFFYHUISLocation DelftEntrepreneurs Roland Dijkman and Ferry van WindenSince 2011Legal form General partnership.Sales level €1,200,000Staff 46 employees - 15 FTE www.stads-koffyhuis.nl Entrepreneurs speaking 15
Het Hooihuis Some people said they were mad. ADVICE TO STARTERS Who builds a new hospitality busi- ness on a bleak industrial estate? Koen sees many starting That's what Koen and Lisette Bakker entrepreneurs who think too did with restaurant Het Hooihuis, lightly of it. Koen: “If you in Roosendaal. The completely new have that dream of your own business was opened in 2007. The hospitality business, you have business's round shape is striking. to give it everything you've That lead to scepticism too, but got. That also means that Koen was (and is) convinced that you have to not do some the business's shape is one of the things and that you have to success factors. make sacrifices. We regularly decided not to take a holiday Koen and Lisette started as en- because we needed to invest trepreneurs in a small restaurant in the money in our business.” Fijnaart. Koen worked in the kitchen, In addition, Koen has a clear Lisette dealt with everything at vision of his role and work in the front. But after a few years, Het Hooihuis. He doesn't work on the shop floor himself. He delegates all the work that has to be done regularly to staff. In his view, a hospitality business's success or failure is down to the quality of the staff and you have to build up a strong team as an entrepreneur.16 Entrepreneurs speaking
something started to gnaw at them. a greenhouse where cooks can growThey wanted a bigger business, one their own vegetables and herbs.in which they spent less time on theshop floor and had more time for Koen and Lisette completed majorrunning a business. They worked for alterations in the spring of 2017.more than a year on their plans for Het Hooihuis has two wings. One ofHet Hooihuis. They really needed the wings houses the new kitchen,that year, says Koen. “We thought, including storage, as the originaltalked and calculated a lot, both kitchen was too small. The othertogether and with the necessary wing provides extra seats and spaceadvisers. Every part of our business for private parties.has been thought through carefully,including the round shape.”Because the building is round,the majority of customers can sitby a window and everyone hasa view of Het Hooihuis's terrace.The terrace is part of a 3,300 m²garden, completely surrounded bygreenery, which makes customersforget that they're on an industrialestate. Koen and Lisette also ensurethat there's always something tosee and experience outside. Largebraziers and deck chairs create anatmosphere and an experience.There's also a large marquee whichis used for weddings and parties.Koen is still thinking about plans forHET HOOIHUIS RESTAURANTLocation RoosendaalEntrepreneurs Koen and Lisette BakkerSince 2007Legal form General partnership.Sales level €3,300,000Staff 86 employees - 40 FTE www.hooihuis.nl Entrepreneurs speaking 17
Katoen Ron Diephout (aged 38) and his ADVICE TO STARTERS wife Vivian (aged 36) run Hotel Brasserie Katoen, in Goes. Katoen Ron's advice to starting en- consists of a large brasserie with trepreneurs is: seek guidance. 150 seats and a hotel with 23 rooms. Know what your weak points The business is partly housed in the are and overcome them by former municipal archives building, asking for help on time. The built in the 18th century. Before financial field wasn't Ron's Katoen opened there, the building strong point, but he works on had been empty for five years and his accounts every Tuesday was dilapidated. The owner, a large with the accountant at his investor, saw potential in Ron's side. “I understand it now plans. He financed the alterations and I can run the business on and the new building (an invest- the basis of figures. Because ment of three million) and is now figures don't lie.” As an en- the landlord. Katoen got off to a trepreneur, he also believes flying start in 2015. that he should be able to do everything that has to be done in the business. Ron: “If you don't understand it, you can't delegate it. You have to provide a good example and be willing to do the dirty work yourself.”18 Entrepreneurs speaking
The sales and the return on the Vivian wanted to register the namebusiness exceeded everyone's as a brand but that's not possibleexpectations in the first year. as cotton is such an everyday word. The word actually comes fromRon formerly worked as a kitchen the business's location, Bleekveldmanager for leading businesses, (Bleaching Field). In the past,such as brasserie Appelmans, in Bleekveld was where the housewivesAntwerp city centre. He comes of Goes spread out their sheets andfrom a real hospitality family: his white clothing on the field to bleachparents ran hotel Terminus, in Goes. them in the sun.Vivian doesn't have a hospitalitybackground, but her strong pointsare marketing and promotion, and,six months after Katoen opened,she decided to give up her own joband support Ron in that field. Ronand Vivian aim to run Katoen as alow-threshold, modern business withan industrial image. The businessis open seven days a week fromearly in the morning till late in theevening.One of the business's strong pointsis the impact of the name. Thetheme ‘katoen’ (cotton) can literallybe seen everywhere in the business:in the furnishings, the decor and thepromotion. This gives the business astrong identity of its own. Ron andHOTEL BRASSERIE KATOENLocation GoesEntrepreneurs Ron and Vivian DiephoutSince spring 2015Legal form Private limited companySales level €2,300,000Staff 47 employees - 29 FTE www.katoengoes.nl Entrepreneurs speaking 19
Menzing snack bar & Menotti ice-cream parlour The change came when Dennis ADVICE TO STARTERS Menzing (aged 43) took over the business from his parents, in Haaks- Weekends have been the peak bergen. The door to the village bar period at Menzing snack bar was closed and Dennis started to for many years. “That doesn't focus on the cafeteria. The cafeteria mean that other days are became Menzing snack bar and unimportant,” says Toyna. space was literally and figuratively “The trick of our trade is to created for Menotti ice-cream organise the business so that parlour. Dennis and his wife Toyna on that Sunday you can serve (aged 41) say it was the best as many people as possible in decision they ever made. With the the most efficient way, versus snack bar and ice-cream parlour taking a hospitable approach they run a business that suits both on the other days, preferably them and their family situation. without wasted hours for staff.” In the past, when they were preparing things, employees were out of sight of customers, but that was unhandy. In the autumn of 2017, Dennis and Toyna altered the kitchen so that staff could always see the customers. Toyna: “You might wonder whether that was strictly necessary, but you have to realise that your business is never ‘finished’. Don't be afraid to knock down that wall; just do it. Alterations give you a working boost!”20 Entrepreneurs speaking
It's a business where they can be says Dennis. “In 2010, I was at thefound practically every day but ice-cream trade fair, in Rimini,which can operate just the same talking to a colleague about thewithout them. alterations I had in mind. He was critical and advised me to split theAs a small boy, Dennis helped in two business units. In his view, thehis parents' business. He went to ice-cream parlour should be inde-the Culinary Vocational School, in pendent. Otherwise, we'd still be aGroningen, the Senior Secondary cafeteria that sold ice creams, butHotel Management School, in our self-made ice cream deservedAlmelo, and worked after that as a a business of its own. The man wascook in a restaurant in Hengelo. In right; I was convinced within five1998, he followed a course at the minutes.”Grolsch Hospitality Academy andthen became a co-partner in his Dennis is a pragmatic man. Heparents' business. His parents took likes to be on the shop floor anda big step back in 2004 and Dennis can enjoy the well-oiled machineand Toyna have been owners of that the snack bar has to be,the family business in Haaksbergen and actually is, during the rushsince then. It's a family business that hour. Dennis calls his wife Toynaconsists of three parts: the snack ‘the brain’ of Menzing. She doesbar, the ice-cream parlour and the everything behind the scenes suchsandwich delivery service \"Broodje as staff rostering, marketing andMenzing\". Behind the scenes these the accounting. That's a full-timethree businesses are one business, job too, although the hours arebut the snack bar and ice-cream fragmented and Toyna adjusts herparlour have their own front door. working hours to the school times ofIt was a surprisingly good decision, their three children.MENZING SNACK BAR & MENOTTI ICE-CREAMPARLOURLocation HaaksbergenEntrepreneurs Dennis Menzing & Toyna Menzing-OttinkSince 2004Legal form General partnership.Sales level €--Staff 23 employees - 6 FTE www.eetsalonmenzing.nl www.ijssalonmenotti.nl www.broodjemenzing.nl Entrepreneurs speaking 21
Pelle’s Their business is the living proof that ADVICE TO STARTERS it is indeed possible. A flourishing hospitality business in a village The building where Pelle’s with scarcely 2,000 residents. Roy is located is leased by Roy Spekhorst and Wendy Amweg (both and Wendy from a private aged 31) run Pelle’s, in Deurningen. owner. They invest a lot in the It's a bar specialising in beer and building, even though it's a meals, with the characteristics of an leased property. Irish pub, plus a room for functions, and a dining room and cafeteria. In They have an agreement with a little more than six years Roy and the building's owner that they Wendy built the village bar into a can buy the building once multifunctional hospitality business they have the finances for full of atmosphere and almost that. The purchase price is quadrupled sales. Pelle’s terrace is fixed, so it won't be ‘driven up' recognised as the best terrace in the by the sales growth they can province of Overijssel and the busi- achieve or the investments ness is a member of the alliance they make. Roy's sober advice is: “Think this through properly when you're about to take out a property lease.”22 Entrepreneurs speaking
of beer houses: Alliantie van Bier- section, the Dining Room. Girlfriendtapperijen. What was their plan of Wendy has since become joint-action? Gradual growth, help from owner of Pelle’s. She also followedfather and father-in-law and just a course at the Grolsch Hospitalityroll up your sleeves. Academy and is a fully-fledged owner of the business. A few yearsRoy went to the Higher Professional ago, they moved from the accom-Hotel Management School, in modation that goes with the busi-Leeuwarden. During his training in ness - where they say they lived asAruba, he missed the village pub in students - into a ‘serious house’, anTwente where he'd worked for years owner-occupied house two streetsat the weekend. Following that year away. It's deliberately out of sightabroad he returned, collected his of the business but within walkingdiploma, and started as manager distance.in Pelle’s, that village bar, where hemoved with his girlfriend, Wendy, Roy and Wendy were able to financeinto the accommodation that goes the step-by-step growth of theirwith the business. Roy wanted to business by reinvesting the profit.continue developing and followed Their parents helped financially tooa course at the Grolsch Hospitality and they also rolled up their sleeves.Academy, a course intended for The two fathers are still involved infuture entrepreneurs. It was in that the business. Roy's father does someyear that the plan arose to take building work and odd jobs, whileover Pelle’s. That's what happened. Wendy's father keeps everything inThe drive to develop continued. In order in the office. Wendy and Roythe year after the takeover, Roy grew as entrepreneurs too. They builtexpanded Pelle’s with a function a strong team around them, so thatroom. A cafeteria followed two years they have time to follow a trainingafter that and after another two and coaching course, start a familyyears the business had a restaurant and play an active role in village life.PELLE’S Deurningen Roy Spekhorst and Wendy AmwegLocation 2009Entrepreneurs General partnership since 2012; started as a soleSince proprietorshipLegal form almost €900,000 30 employees - 9 FTESales level www.pelles.nlStaff Entrepreneurs speaking 23
’t Voorhuys A multifaceted business. That ADVICE TO STARTERS sounds like a cliché, but ‘t Voorhuys, in Emmeloord, can truly be called a Renee and Twan worked in wide-ranging business. It's a grand the business for a year to café with 120 seats, a restaurant, decide whether they wanted 25 hotel rooms, various function to take it over. Without any rooms and a theatre. The business is future obligations, that year open daily from eight a.m. Its nick- became a year in which name is Huyskamer van Emmeloord their enthusiasm increased (Emmeloord's living room). Owners week by week. The young Twan Hakvoort and Renee Hellen- couple saw all kinds of new doorn (both aged 30) are enormou- opportunities for ‘t Voorhuys sly proud of that title. It underlines and discovered numerous what they constantly emphasise: points for improvement. genuine hospitality for everyone. “My parents did a fantastic Everything revolves around the job,” says Renee. “I want to customers at ‘t Voorhuys. A nice emphasise that. But during example of that is the beer brand. that year, we just worked on the shop floor, among all the employees. We heard and saw things that had been hidden from my parents. It meant that we had a better idea of what we had to do. That made that year very valuable. I'd strongly recommend anyone thinking about taking over a business from his or her parents to work there as a paid employee for a year.”24 Entrepreneurs speaking
Renee and Twan were open to Renee and Twan took over thecooperation with the brewery, but business from Renee's parents.customers said they'd like to drink They were both students at Stendena different beer, so now there are University of Applied Sciences,other barrels in the cellar. otherwise known as the Higher Professional Hotel ManagementThe young couple serve customers School, in Leeuwarden, when Erikif necessary, but their work mainly and Joke Hellendoorn said thatconsists of managing, organising they wanted to sell their business.and determining the business After decades in the hospitalitystrategy. Twan is the enthusiastic industry, they wanted time to takeman at the front of the business; things easy. However, they'd neverRenee looks after the structure thought of a takeover in the family,behind the scenes. That's a division because Renee was still studyingof duties that arose spontaneously and her brothers and sisters didn'tand worked out well. ‘t Voorhuys is work in the hospitality industry.constantly changing. “You're never Nevertheless, Twan and Reneeready and the business is never became joint-owners of the businesscomplete,” says Twan. For example, in the Northeast Polder in 2012.the conservatory was altered in the Two years later, Renee's parentsspring of 2017. In the autumn of transferred the last shares and since2016, Twan and Renee spent time then Renee and Twan have beenand money visiting the businesses running ‘t Voorhuys completely forthat arrange accommodation at ’t their own account and risk. TheVoorhuys for their business guests. building is still owned by Renee'sRenee: “Our occupancy is fine. But parents, Erik and Joke Hellendoorn.you have to make an effort to keepit like that.”HOTEL RESTAURANT GRAND CAFÉ ‘T VOORHUYSLocation EmmeloordEntrepreneurs Renee Hellendoorn and Twan HakvoortSince 1995 run by Erik and Joke Hellendoorn, Renee's parents. Since 2012, run by Renee and partner Twan, owners.Legal form Private limited companySales level €3,500,000Staff 42 employees - 32 FTE www.voorhuys.nl Entrepreneurs speaking 25
Café In de Karkol It sounds easy. It’s a Dutch pub in ADVICE TO STARTERS Maastricht's oldest shopping street. No meals, but a lot of beer and In 2016 Barth opened his good wine. Behind the bar there's a second business: Petit Café real host, wearing a white shirt with Moriaan. It's the smallest bar a black waistcoat. The business is in the Netherlands, and it's no bigger than 37 m². Nevertheless, also in Stokstraat, Maastricht, Café In de Karkol is known through- opposite In de Karkol. Barth out the country and in 2016 the and his team transformed business headed the Bar Top 100. it into a Burgundian bistro Entrepreneur Barth Hochstenbach with a contemporary interior. (aged 49) is at the helm. The building changed owners often in recent years and Barth worked in the Maastricht Barth was approached hospitality industry for years before several times to ask whether taking over Café In de Karkol in 1999. he'd like to take over the It's a small bar that he wanted to operations there. He was run with his wife. He wanted no advised many times by third parties that if he took it over he'd be able to stay ahead of the competition. However, Barth didn't see any competition. “My advice to any entrepreneur is: take your own strengths as the starting point. A nice bar opposite was very welcome. My business benefits from a lively street with attractive hospitality businesses.” Finally, after much consideration, he changed his mind in 2016. Because his organisation was ready for it. He created a business that's nothing like In de Karkol. It was truly an asset for Stokstraat.26 Entrepreneurs speaking
more than one member of staff In de Karkol has an excellentbecause he wanted to spend a lot product range, clear staff policyof time behind the bar himself, and a congenial marketing planas it was contact with customers that's perfect for a small bar. Thethat Barth thought was the best annual carnival is prepared for withpart of the profession. Things didn't military precision. “Even after sowork out like that. A few weeks many years, that's still an excitingafter opening, there were several week,” says Barth. “That beer willpeople on the payroll and Barth all be drunk; I have no worries aboutdidn't know what was happening that. But the organisation has toto him. And the success continued. be right. Optimum performanceIn de Karkol has been popular from everything and everybody isnow for years. What's the secret? required. For instance, a defectiveHonest hospitality. Anyone who cold store is a disaster. We gocomes to In de Karkol is seen and through everything in the weekswarmly welcomed. The small size before carnival. Everything has to bemeans that customers soon make able to cope with intensive use.”contact with each other and thestaff. The men behind the bar knowwhich special beer you drank lasttime. If you can't decide between aChardonnay and Pinot, taste themfirst then we'll fill the glass. It's a barwhere customers still buy a round inthe old-fashioned way. People laugh,dance and cry here. And it's openseven days a week. It's a ‘traditionalpub’, according to Barth. That'snot to say that every detail in thebusiness hasn't been thought about.CAFÉ IN DE KARKOLLocation MaastrichtEntrepreneurs Barth Hochstenbach and Aggie BronnebergSince 1999Legal form General partnership.Sales level €683,000Staff 15 employees - 6 FTE www.indekarkol.nl Entrepreneurs speaking 27
1.Summarise andpresent “ GOOD GIRLS GO TO HEAVEN; BAD GIRLS GO EVERYWHERE.” YOU NEED COURAGE TO BE AN ENTREPRENEUR AND YOU HAVE TO GET THINGS DONE. CREATIVE ENTREPRENEURS COME CLOSE TO THE EDGE SOMETIMES. YOU CERTAINLY MUSTN'T BE AFRAID AND YOU REALLY HAVE TO WANT TO GET SOMETHING GOING. IN OTHER WORDS: MAKE A CONVINCING PLAN AND GO FOR IT! SUMMARISE THE PLAN PRESENT THE PLAN
Introduction In the business plan you go into details about the business of your own that you have in mind. You start the plan with a summary. To quickly give the reader an idea of your plans, you explain briefly and to the point what you want to do. Moreover, this has to make readers enthusiastic about your plans. You have to grab their interest so that they want to read the rest of the plan. After all: you'll want to convince possible financiers too, and they'll have to at least be impressed by you, your business formula, ideas, vision and strategy. Make sure that you don't go into too much detail here. That's what you'll do in the following chapters. The summary is intended to give an initial impression and make readers enthusiastic. That sounds simple, but in practice it often turns out to be difficult. It might be a good idea to write this chapter as the final one. You'll find while writing it that you develop the plan further and maybe also refine it. 1.1 | The summary 1.1.1 | Concept “ I WANT TO SET UP A BUSINESS IN Explain your ideas in a few senten- GOES, WITH FOOD FROM ces. Say what kind of business you APPELMANS, IN ANTWERP, want to start and what type of THE HOTEL ROOMS OF enterprise it will be. Explain, for HOTEL NEW YORK, instance, why the business has a IN ROTTERDAM, AND certain name and talk about the THE PRICE LEVELS OF kinds of products you'll be selling VAN DER VALK.” and where. Say something about the price level and service level and, RON DIEPHOUT for example, the look of the interior KATOEN or the staff clothing. Basically, this is where you provide a brief summary of the details set out in your plan. This book provides information on this in chapter 4: ‘Working out the business formula’.30 Summarise and present
1.1.2 | Location IN PRACTICEYou start this part with the address The name ‘Katoen’ comesdetails of your premises. You descri- from the location. In thebe the surroundings and the market past, Bleekveld was wherein which your business is establishing housewives spread out theiritself. You also briefly describe the linen on the grass to dry it andhistory of the building and the loca- bleach it in the sun. They'dtion. What are competitors doing? discovered that the oxygenWhy is this business an addition and from the grass combined withwhat target group do you appeal the sunlight made the sheetsto? This is also where you discuss the whiter and fresher. Katoen'shistory of the location and of the brasserie is located in thepremises and possibly of the busi- old municipal archives. Theness too. You show here why this hotel rooms are partly newlocation is right for your business buildings and are also partlyformula. built in the old municipal archives. Katoen is located inBasically, this is where you provide a the centre, but outside thebrief analysis of the market in which busy area. In entrepreneuryou want to establish your business. Ron Diephout's opinion this isThis book provides information on the ideal location for a hotel,this in chapter 3: ‘Analysing the especially in combinationmarket’ and chapter 4: ‘Working with the parking facilities atout the business formula’. Bleekveld. Summarise and present 31
InterviewWITH KOEN AND LISETTE BAKKEREntrepreneurs of Het HooihuisSTRUGGLE OR RUN A BUSINESSKoen and Lisette Bakker wanted to sell their business andstart a new one. “We wanted to run a business in a differentway,” Koen said. “Run a business instead of struggle. We'dshown with our meal-serving café in Fijnaart that we couldbuild up a profitable business. But that business was too smallfor real entrepreneurship. We were on the shop floor a lotof the time, but we actually wanted to manage people andspend time on working out the concept of our business.”
1.1.3 | Motivation 1.1.5 | Time frameIt's also essential to make clear to This is where you briefly say whatthe reader why you are so eager tocarry out these plans. What exactly the time schedule is. When can youis your motive and why do you thinkyou're the right person to set up a move into your premises to startsuccessful business based on theseplans? If you are starting up with the preparatory work and when doanother person, explain the reasonfor choosing that business partner. you want to have the doors open forProvide a brief summary here of business? Also say whether there'syour personal details, qualitiesand motives. This book provides a particular reason for starting oninformation on this in chapter 2:‘Introducing the entrepreneur’. that date. In addition,1.1.4 | Financing say what your plansThis is where you indicate the finan- and ambitions arecing possibilities you'll be using, howmuch money, if any, you'll have to for the future. For MAKE SUREborrow, and whether you'll be inves- example, what doting any of your own money. you aim to achieve tipYOUR SUMMARY in the first year and IS AROUND what would you like to achieve in the ONE A4 LONG. longer term? This is where you provide a brief overview of your plans for a particular period. This book provides information on this in chapter 7: ‘Working towards the opening’ and chapter 8: ‘Implementing the plan’.You therefore provide a concisedescription here of the financial planyou've drawn up. This book providesinformation on this in chapter 6:‘Drawing up a financial plan’.ASSIGNMENTDescribe the concept, the location, your motivation and way offinancing your business. Also describe the time frame to the opening. Summarise and present 33
1.2 | The pitchWith a good pitch You call a brief presentation of your very likely to want to explain every-you can convince a plan a pitch. You make a pitch of thing in detail and as clearly aspotential financier this kind for a potential financier or possible. This takes a lot of time, soin five minutes. for the teacher you'll be presenting it won't work. your business plan to and defending it. A pitch should last no longer than It's important that you prepare your five minutes. After that, the listener pitch carefully. Make sure that you should be convinced of your ideas. only provide relevant information Questions can be asked afterwards and that you therefore only talk for clarification. about the core of your plan. Any listener who wants to know more Make a brilliant presentation using can always ask for a further expla- a lot of images. You can, of course, nation or supporting information use PowerPoint or Prezi for this. afterwards. The details a financier You can also use other creative and wants to hear may be different from surprising tools that provide a good those that a landlord or teacher impression of your plans and what wants to hear. You may, therefore, your business should look like. The have to prepare different presen- guiding principle in this phase is: the tations. more crazy and creative the better! Practise your pitch out loud a few Because you have a maximum of times in front of a mirror and time five minutes for your pitch, you have it. That's the only way to make sure to give a short and persuasive pre- that you come across convincingly sentation. Because you're enthusias- and that you keep to the time limit. tic about your plans and you want to convince your listener(s), you're ASSIGNMENT Make a pitch about your business plan. Make sure it lasts no longer than five minutes.34 Summarise and present
1.Notes
2.Introducing theentrepreneur “ THE PERSON MAKES THE BUSI- NESS!” THIS WAS THE SAYING USED FOR YEARS BY A MAJOR BANK IN CONNECTION WITH FINANCING APPLICATIONS FROM ENTREPRENEURS. BANKS (AND OTHER FINANCIERS) LIKE TO SEE A DYNAMIC, ACTIVE ENTREPRENEUR WHO KNOWS HOW TO GET THINGS DONE AND COMES WITH A GOOD, WELL- THOUGHT-OUT PLAN. PROVIDE PERSONAL DETAILS LIST PERSONAL QUALITIES SPECIFY YOUR PERSONAL ROLE LIST PERSONAL MOTIVES AND AMBITIONS STATE YOUR PRESENT INCOME
Introduction You don't write a business plan just for yourself. You'll probably need financiers if you want to start up a business. You have to make any financiers enthusiastic about your plans, but they'll also want to know who you are and what you're capable of doing. They'll be curious about the education and training you have had, your professional experience and your personal situation. Do you have a partner and does your partner support your plans to start your own business? Do you have a hospitality industry background or do you come from a family of entrepreneurs? What are your present sources of income? They'll want to know your strong points and less strong points. It's also good for you personally to look at yourself in this light, so that you know what you are and aren't good at and what you need to work on or where you need help from others. Every entrepreneur and every business is unique and it's up to you to choose your own path in that.2.1 | Personal detailsYou start by stating your personal marriage contract or cohabitationdetails: name, address, city/town, agreement you have. You then listtelephone number and e-mail the education and training you haveaddress. You also state your date of had and what diplomas you have.birth, nationality, composition of Finally, you describe your relevantyour family, partner's name, and any professional experience.ASSIGNMENTMake a list of your personal details.38 Introducing the entrepreneur
PERSONAL DETAILSNameAddress tipUSE YOUR CVPostcode and city/townTelephone number TO WRITE THIS PARTE-mail address OF THE PLAN!Date of birthNationalityMarital statusName of partnerMarriage contractCohabitation agreement You don't writeComposition of family a business plan just for yourself.EDUCATION/ TR AINING You have to make potential financiers enthusiastic too.Name of school Place Study programme Period DiplomaPROFESSIONAL EXPERIENCEName of company Place Job title Period Introducing the entrepreneur 39
2.2 | Personal qualities In the hospitality industry the fascinating question, especially if it entrepreneur's personality is of concerns you. What kind of person overriding importance for the am I actually? How do I come across business for-mula's success. A to others and what do they think hospitable ambience and personal of me? This is all concerned with contact are especially necessary behaviour. in smaller hospitality businesses. You need many qualities to be FNV for the Hospitality Industry has an entrepreneur, not only in the developed a special tool to discover professional/technical sense but what your behavioural style is or also at the personal level. You can your natural way of acting. literally map out those qualities using Personal Mapping. PERSONAL MAPPING How come we're all so different and react in various ways to a busy day at work, for instance? It's a Other people’s interpretation and experienceMyweaknessesPersonalm4a0p Inotrfodumcinyg thbe eenthreparevneiuor ur
You can complete a questionnaire tipFOR YOUR PERSONAL The entrepreneur'son the Internet on the website personality iswww.denkerofdoener.nl. You MAP, GO TO THE WEBSITE of overridingcan learn what your strengths DENKEROFDOENER.NL importance forand weaknesses are on the basis the businessof the questionnaire. You'll also Be honest with yourself and othersfind out how to recognise other too, because there's no such thing formula's success.behavioural styles and how to as a person with only positivehandle them. After completing the qualities. Dare to say what yourquestionnaire you receive a short possible weaknesses are. Then you'llfilm and your own personal map. come across as much more credi- ble. Show that you've already givenPeople are unique individuals. Fortu- some thought to your weaknesses.nately, even if we sometimes seem You come across as more profes-similar to each other, we're still dif- sional if you can say how you lookferent. Personal Mapping only shows upon these weaker qualities andyour behavioural style. It doesn't skills and how you deal with them.measure other details, such as skills, For example, if your administrativeintelligence or emotions. It's the skills are less well developed, you cancombination of all these things that follow a course to improve them.makes us unique individuals. The You might start a business with anice thing about behavioural style is partner and work well together.that you're directly involved with itin your day-to-day contact withothers. One behavioural style isn'tbetter than another, so a behaviou-ral style isn't an achievement.ASSIGNMENTGo to www.denkerofdoener.nl and answer the questions; then watchthe film and look at your Personal Map. Make a brief summary of yourstrengths (personal map of your behaviour), points for improvement(weaknesses) and how others experience you. Discuss your summarywith a colleague or classmate. What stands out? Introducing the entrepreneur 41
InterviewWITH ROY SPEKHORSTOwner of Pelle’sKNOW YOURSELFRoy Spekhorst wrote a business plan in 2009 for the acquisi-tion of Pelle’s. He also took a personal test at the time. The‘pioneer’ profile turned out to be the most applicable to Roy.Each of these characteristics is very useful in entrepreneurship,especially in the start-up phase. The profile in which Roy hadthe lowest score was that of ‘manager’. A manager providesstructure and maintains oversight. After completing the test,he was more aware of his possible weaknesses. Roy decidedto consult a coach on a regular basis who forced him to for-mulate his goals clearly and thereby avoid chaos. Moreover,his father-in-law works at Pelle’s office every Monday to keepan eye on structure in the administration.
ASSIGNMENTIn the table below you can say what your plus points and minus pointsare for the indicated qualities. You can also show the feedback fromothers in your immediate circle. Then think of points for improvement.PERSONAL STRENGTHS/ WEAKNESSES ANALYSISQuality Own opinion Feedback from Points for immediate circle improvementProfessional + +competence - -Experience + + - -Perseverance + + - -Service-minded + + -attitude -Cooperation + + - -Management + + -skills -Creativity + + - -Decisiveness + + - -Flexibility + + - -Daring to take + +risks - -Presentation + +focus - -Communication + + -skills -Administrative + +understanding - - Introducing the entrepreneur 43
2.3 | Personal roleEntrepreneurs come There's no such thing as the one and working owner of a small business.in various shapes only type of entrepreneur. Entrepre- It's therefore good for you to knowand sizes. neurs come in all shapes and sizes. what feels like the right place forSo there's no such Not only the sector determines the you and what business formula isthing as the one type of entrepreneur you have to be; most suitable for you. Your personaland only type of the type of business plays a big role strengths/weaknesses analysis canentrepreneur. too. The location (city or village) help answer questions like these. demands different qualities from the entrepreneur, as do regional “ I LIKE TO SPEND differences and the size of the busi- TIME ON THE SHOP ness. The entrepreneur of a chic FLOOR. WITH MY WAY OF restaurant in Amsterdam is a com- WORKING IT WOULDN’T pletely different person from a café BE POSSIBLE TO RUN SIX proprietor in a small village in Bra- BUSINESSES. I DEFINITELY bant. Everybody knows everybody in WOULDN'T WANT TO a village in Brabant and, as a café EITHER.” proprietor, you'd get to hear a lot about the lives of your customers DENNIS MENZING and would have to deal with that MENZING SNACK BAR & in the right way. The owner of a MENOTTI ICE-CREAM PARLOUR large company will spend less time on the shop floor than the co- ASSIGNMENT Say what kind of entrepreneur you are.44 Introducing the entrepreneur
2.4 | Personal motivesand ambitionsYou've identified your strengths and IN PRACTICEweaknesses. But why do you want tobe an entrepreneur? You might have Dennis Menzing, of Menzingvarious reasons. snack bar, in Haaksbergen, had wanted to be a cook\\ You have a good idea that you since childhood. He always want to realise. helped in his parents' busi- ness, not because they asked\\ You have the opportunity to take him to but because he felt over a business. responsible. When things got busy for his parents, he'd\\ You've gained a lot of experience cancel football training to in various companies and you're help them out. That's how it now ready to start your own. should be and he did it with pleasure. When Dennis tookIt's important for you to show as over the business from hisclearly as possible why you are the parents, he had a majorright person to start this business. change in mind. He'd closeThen you have to show that you've the café and continue withthought about the future. You indi- just a cafeteria, but thencate what your business ambitions a high-quality cafeteria. Itare. You probably want to make would be a snack bar whereyour business a success within a he might work on the shopcertain period of time, after which floor, but it wouldn't beyou may well dream of opening a dependent on him.second branch. Always be realisticwhen you describe your ambitions;you obviously have to realise yourpresent plan first. And that takestime, money and energy, and there-fore involves a serious investment. Introducing the entrepreneur 45
ASSIGNMENT Give your reasons for wanting to be an entrepreneur and describe what you want to achieve with your business. 2.5 | Present income - PersonalIf you currently Potential financiers are interested in the moment or have done so in thehave a well-paid your present income and its com- past, you know what your monthlyjob, you may have position (work, benefit payments, income is. When you're the ownerless income as an contribution from parents). If you of a sole proprietorship or a partnerentrepreneur in the currently have a well-paid job, in a general partnership, you'reinitial period. you may have less income as an not on the payroll. The net profit entrepreneur in the initial period. is your income. Therefore make an estimate of your personal outgoings If your plans go ahead and you really in advance, because in the early do start your business, you shouldn't years you may have to live on a expect to make substantial profits lower income than you're used to. immediately in the first year. But you Compare your present financial will have to live from your business. situation with your expected future If you work in paid employment at outgoings. ASSIGNMENT State your present income and describe your anticipated personal outgoings for the next two years.46 Introducing the entrepreneur
PRESENT INCOME AND PERSONAL OUTGOINGSPresent incomeAmount Work, benefit payments, contribution from parents, student loan, etc.Personal outgoings Year 1 Year 2Housekeeping moneyRent or mortgage interest/repaymentEnergy costsConsumer durablesHealth insuranceInvalidity insuranceOther insuranceHolidaysIncome taxOther outgoingsTotalPersonal receipts Year 1 Year 2Partner's incomeHousing benefitChild benefitOther receiptsTotal Year 1 Year 2Personal outgoings - personal receipts Introducing the entrepreneur 47
48 Introducing the entrepreneur
2.Notes
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