Give us a call on 01225 300 490

RESTAURANTS TOIL IN SUMMER HEAT, WHILE PUBS MAKE HAY

02.10.18
    • Share this article:

    July’s heatwave was good news for British Pubs but heaped more pressure on the country’s restaurant chains, latest figures from the Coffer Peach Business Tracker Show. Managed pub and bar groups saw collective like-for-like sales rise 2.7% against last July, while sales across restaurant groups plummeted, down a substantial 4.8% in like-for-like trading. However, changes like this aren’t unexpected..

    The restaurant industry is continuously changing which means that some restaurants make it, and others don’t. One constant is that new restaurants always seem to pop up leaving the question.. How are these establishments funded? While some directors may pour their own personal savings into running a restaurant, others rely on funding from elsewhere.. We can help on raising finance.

    Raising Finance

    Every business needs finance - whether it is just starting up or looking to develop and grow. What type of finance is best suited to the development of your business, and who should you approach for funding? If you are starting or have recently started a business, then Zig Zag Chartered Accountants can help you in the planning stage of raising finance.

    Assuming external funding is necessary, planning is essential in achieving success. A well-drawn up business plan not only crystallises in your own mind the nature of the project and the timing of any required funding, but is vital to any lending institution. They are unlikely to provide any assistance without a properly drawn up business plan.

    The plan will include details of:

    • the objectives and aims of the business
    • the purpose of the required funding
    • the business ownership and history
    • management and responsibilities
    • products and market share
    • sales plan and strategy
    • the financial position of the business with detailed cash flow forecasts and past accounts.

    Methods of Finance

    Specific methods of finance are available for acquiring assets or releasing cash from debtors. Carefully consider the options available which include:

    • leasing assets
    • hire purchase
    • outright purchase
    • debt factoring
    • invoice discounting

    Each method of funding has advantages and disadvantages including implications for tax purposes. To find out more about what type of finance would be best for your company, feel free to give us a call on 01225 300490.

    Xero Accounting

    Try it today