Financial planning is essential in running any business that has fixed (tangible) assets. In the case of a restaurant, the fixed assets (also known as tangible assets) may include the land, land improvements, building, cash, furniture, fixtures, and equipment. Assets may also be intangible assets. As a restaurant facility manager, your role is to develop and maintain a master plan that affords the best use of capital as it is invested into the restaurant's fixed assets. By the end of this lesson, you will be able to:
- Define terminology related to financial planning.
- Distinguish capital improvements from ordinary expenses.
- Identify financial decision-making tools used for evaluating an investment in a capital improvement.
- Describe key aspects of using facility inspections for budget planning.
- Recognize budgeting and forecasting principles for making sound financial decisions.