I found a location thats ideal and the demand for this kind of restaurant is not being fullfilled in my comunity. I do not have the start up capitial to take this on. Where should I look for loans and investers? Also I have a general contractor and an electrician that will do all work for cost for me.
2007-01-02 06:24:35 · 4 answers · asked by mike m 2 in Business & Finance ➔ Small Business
Try contacting people who have well established restaurants and great experience in the industry but don't compete in the same area/market as your restaurant. These angel investors will likely give you a large front of money, plus a good deal of expert advice, in exchange for a good percentage of profit paid to them when your restaurant succeeds: they, of course, want it to suceed as when it does, they get richer along with yourself.
This way you do not risk issues like bad credit and bankruptcy from loan issues to the same degree. If your restaurant becomes wildly successful, and it gets to you that you have to pay a large percentage of profit to your investors, you can easily sell the business to such investors but use your money, reputation, and knowledge to start a new restaurant business somewhere else that you have full ownership of.
2007-01-02 06:35:32 · answer #1 · answered by M S 5 · 0⤊ 0⤋
Good luck.
Do you have a proven history in the restaurant business, if not then traditional lenders will probably not look at you unless you have assets like a house or land to secure the loan.
The usual ways start up restaurants get funded are from the owners own savings, family and friends. Yep it sucks to get cash that way but you are entering a business where 7 out of 10 new restaurants fail in their first year.
Without a proven track record or existing assets it will be tough, not impossible but definately tough.
Buy some books on restaurant management and business planning and read them back to back until you understand the concepts, then crunch some numbers. You might find that the profits really arent there.....if so then you just saved yourself and your potential investors thousands of dollars. Those books are the best destination for your dollars right now.
2007-01-02 06:35:08 · answer #2 · answered by Morgan W 3 · 0⤊ 0⤋
A good starting point would be www.sba.gov or www.firstgov.com
These are government website which can always lead you in the right direction as far as funding goes.
2007-01-08 07:45:14 · answer #3 · answered by ? 4 · 0⤊ 0⤋
go to entrprenuer.com
2007-01-07 12:11:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋