My husband and I have great ideas for opening our own restaurant and running it. We've looked into the business and have a good idea of how things need to be done. We have many years of experience working in the restaurant field but we're only in our early twenties. We have credit but not enough to take out big loans.
How would we go about obtaining the required amount of money it will take to start the business without writing a business plan. Reason for not having a business plan is that we are not interested in investors. Will the bank loan us the money without a business plan or without a co-signer?
Please no rude comments. Thanks in advance.
2007-06-05 19:15:04 · 6 answers · asked by M. Ly 2 in Business & Finance ➔ Small Business
People are right about the business plan, however the main thing you need are FINANCIAL PROJECTIONS. The banks want to see your overhead and projected sales and market data over a three to five year period.
Think about, why would I loan you $100 to start a lemonade stand without you telling me what you plan to charge, how many cups you think you can sell a day, your cost to make each glass of lemonade, and your general overhead?
I really can not understand why you feel that you do not need a business plan or financials. The only guess I have is that you feel entitled to a loan officer giving you hours of their time for you to orally tell them information and for them to take notes, something that will not happen, and will negatively impact you...
2007-06-06 04:10:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It's difficult for banks to loan you money when you don't have a business plan... So most likely, you're going to have to go off on your credit. But depending on your credit, you can most likely get a line of credit from banks to help start off your business. Even then, you most likely won't get anymore than 20 thousand dollars even if you have good credit. However, another option is to take out a mortgage on your home and use the money to invest toward your business. Also, I sure you hope guys have a good chunk of money saved up so far, because it's quite expensive to start out a business on your own. Best of luck.
Bacchus
2007-06-05 19:23:30 · answer #2 · answered by Bacchus 2 · 0⤊ 0⤋
I don't believe a business plan demands investors but most banks do want to see a business plan because by loaning you money they are in fact, investing in your business. They need to know you have a plan and know what you are doing. I would prepare a plan and present it to a bank without looking for outside investment it will do you no harm and should help your cause.
2007-06-05 19:23:31 · answer #3 · answered by Robert P 5 · 0⤊ 0⤋
If you can't write a business plan, you are not ready to start your business.
Write the plan, for yourself, not investors.
2007-06-05 19:26:35 · answer #4 · answered by Blondie 3 · 0⤊ 0⤋
i dont think the bank will loan you money unless they are assured that you will pay them back..
have a plan first.. and dont worry.. investors will not harm you...
2007-06-05 19:39:37 · answer #5 · answered by mULan 2 · 0⤊ 0⤋
Really, you're doomed from the start if you do not have a plan. Think it over.
2007-06-05 19:21:28 · answer #6 · answered by TedEx 7 · 0⤊ 0⤋