costs for a restaurant can be significant. The same holds true for expansions or renovations. Few people hold on to such large sums of
cash. That means that if you want to
open a restaurant, or improve things at one you already earn, funding will be one
of your top priorities. There are a few
basic options you can consider.
you have the collateral, and the net worth to apply for a straight business
loan from your bankers, go ahead and do so. Banks are not always friendly to restaurants, but if you have
established yourself with the community and have a clean credit report, you may
qualify. Get a business plan together,
be ready with actual figures and estimates and approach with confidence. Any hesitation on your part will decrease
your odds of landing the loan.
you probably want to avoid going to friends and family when funding a
restaurant, that doesn’t mean that other investors aren’t available. People who are interested in the food
industry, but don’t have the know-how or business experience necessary are
sometimes willing to invest in a particular business for a piece of the
profits. They may want to have a say in
operations, though, so choose your partners wisely.
SBA can help you get financing. While
the Administration doesn’t lend funds itself, it can help connect you to
lenders and secure your loan. Keep in
mind that even though the SBA may be willing to sign on to guarantee a portion
of your assumed debt doesn’t mean you are sure to get the funds. You will still need a solid business plan and
excellent credit, or the SBA won’t take the risk either.
of the hottest trends in financing private endeavors is Kickstarter. If you have something specific in mind, for
example some new pub tables and chairs, Kickstarter may be just what you
need. This website gives you the
opportunity to approach locals and ask them to help you out. The funds, if raised,
are given to you free and clear. It is
nice if you offer “rewards” for those who participate, in the form of discounts
or free perks.
Can You Do With Your Funds?
of the process of funding a loan is providing a business plan. You may opt to expand your restaurant, invest
in commercial restaurant equipment, revamp the whole look with new restaurant
furniture or move to a second location. Market forces and your current level of success will determine your
needs. Stick to your plan, though, or your lender may be in a position to ask
for the funds back.
a New Niche
of the largest growing market shares revolves around accommodating dining
restrictions. While it may seem
counterintuitive to search out groups of people for what they can’t eat,
when in the food industry, feeding those with food allergies is big
business. Revamping your restaurant to
actively pursue the gluten-free or soy-free population may be just the thing to
help profits skyrocket.