I want to open up a restraunt/night club. I have enough money to pay rent and get by, so is there any way I can open up a business? If so, how? Do these grant programs help? how realistic is it for a bank to give me a loan?
2007-03-21 08:26:11 · 8 answers · asked by GODFATHER 2 in Business & Finance ➔ Small Business
Restaurants in particular are a tough business because they have such a high failure rate. To mitigate this, a bank will want a combination of both demonstrated expertise and substantial capital contribution (cash equity) from the owners. If you have neither, you'll have to bring partners into the deal who can provide these things. Of course, that will take away a significant portion of your projected profit.
There's always private money available from people who want to buy part of any business venture, but this is invariably pretty expensive money, i.e., you'd have to pay a relatively high return on investment to this type of investor.
You've got a lot of due diligence ahead of you if you want to realistically consider this venture. Get all the information you can regarding the market, competition, and demographics. You'll have to have your "concept" really fleshed out, as well a detailed projection of revenues and expenses, to be able to present it to prospective investors, let alone a bank. Be prepared to be turned down a lot before you get an approval, but try to learn something from each denial so that you can improve your presentation.
This is not a venture to be entered into lightly. But should you decide to go for it, you have my best wishes - you'll have to work hard at it seven days a week. Good luck.
2007-03-21 08:43:19 · answer #1 · answered by Marko 6 · 1⤊ 0⤋
Not that you need it but prosper.com helps those start a business. Also banks/lenders are more likely to give you a loan if you have a short term plan drawn up and a long term. Show the figures of the cost of rent, staff, food, etc. and what you believe will be brought in. When they can see that at the beginning the profit low and later the profit grow, you will have a great chance at the loan, and grants are there but you have to be willing to do the research and work for them.
2007-03-21 08:36:15 · answer #2 · answered by 20+ years and still in-love! 4 · 0⤊ 0⤋
Ok grants first - yes they are available but very difficult to get.
Bank loans usually want you to have a deposit of 20%
Your best bet is to get together a realistic business plan with what you wish to do and what it will cost in quite detailed format.
Then go to the Small Business Bureau and ask their advice. They are more able to help you if you have realistic plans already mapped out.
A night club is very expensive to start up.
A resturant is cheaper but is a very competive market and many fail in the first few years.
My advice as you are capital poor is to start small. Look at event catering for example. Make sure you have the right licences, permits and health certificates first.
Start small and you have not risked too much and build up. If you do well you will learn, establish your business name and build up capital and customers.
Good luck
2007-03-21 08:35:43 · answer #3 · answered by Biz Guru 5 · 0⤊ 0⤋
You can go to the library and study a little on putting together a business plan if you haven't done that already, they should also have a book listing types of grants to look into. Also talk to a counselor at your local small business association and see what kind of advice they can give you. I wish you and your family all the luck in the world.
;=)
2007-03-21 08:37:41 · answer #4 · answered by Netta M 2 · 0⤊ 0⤋
You will have to be approved for a small business loan, which means you'll need a partner or some collateral (like your house.) If you don't own a house, you'll surely need an investor or a partner. If you do own a house, you run the risk of losing it if the business fails.
Make sure your restaurant/club offers somethings UNIQUE. If you make it like every other place out there, it won't be successful.
2007-03-21 08:31:18 · answer #5 · answered by Anonymous · 0⤊ 1⤋
It is possible that you might qualify for a small business loan. Otherwise, there are grants available from the government. If you belong to a minority or other group your chances are even better.
2007-03-21 08:38:45 · answer #6 · answered by worldwise1 4 · 0⤊ 0⤋
How is your credit? if your credit is high enough, (over 700) banks will fall over themselves to give you a loan. If it is not, you may want to focus on improving your score. Despite how much money you have, the bottom line is always your credit
2007-03-21 08:30:45 · answer #7 · answered by upfromnutin 2 · 0⤊ 0⤋
Id say if you have enough to pay rent it is plausible. Assuming that your presentation to the bank officer is impressive.
2007-03-21 08:35:35 · answer #8 · answered by Anonymous · 0⤊ 0⤋