1.
Re: Starting a fine-dining Restaurant Dec 16, 2008 5:53 PM
Congrats on how far you've gotten on yor business plan. Here are the things a bank or SBA lender will want to know:
1) Do you have experience running this type of business? Experience includes managing people, procurement, and P&L management
2) How much money do you have to put into the project? These days, banks will want at least 10% (but likely more) of the total project cost to be injected by the owner. If you have nothing to lose in the deal, they aren't going to put their money at risk.
3) Do you have any collateral? If the business failed, how would the bank be made whole? Things like tables, chairs, and kitchen equipment are of negigible value. Banks want stocks, bonds, mutual funds, or real estate (in most cases, this means your house).
4) Do you have an outside source of income to repay the debt if your business isn't making any money? In most cases, this is a spouse who maintains employment outside the business.
Of course, a business plan includes more info, but those are the big items that a bank wants asnwers to. Much of the info in most business plans falls into the "nice to know" category, but it's not going to drive the decision to approve or decline your request.
Good luck!
