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Starting my own Cafe, Welcome
Who are you?? Where are you and this Cafe located??
You start by developing a Business Plan.
SCORE can help with the plan. SCORE is FREE
Good luck, LUCKIEST
Before you spend many hours writing a business plan, there are few "musts" that need to be present before a bank will consider your request. If you don't have these things, it's doesn't matter how detailed your business plan is:
- Good personal credit - If you are not sure what your credit report looks like, pay $10 and purchase one that includes a score from any of the 3 major bureaus
- Cash - If you don't have any of your own money to put in, you will not be approved for a loan. If you aren't taking any risk, neither will the bank
- Outside Source of Income - If you are going to be starting a cafe from scratch, the bank wants to know that there is a dependable income stream from somehwere other than the cafe, since it has no operating history. Most people look to a spouse with a full time job for this.
As a lender, I've seen many people waste many hours writing an all-encompassing document covering every possible detail. Lenders typically want to know 2 things: what are you using the money for, and how will you pay them back. If you devote your time to tackling those 2 problems, you'll drastically improve your chances of being approved. All the issues tackled in a busines plan do matter, but its more valuable to you than a lender.
I have a friend that worked for a cafeteria chain for a number of years. Before he went out on his own he took a "starting your own business" course at the local community college. The course covered business plans and obtaining financing amoung other topics. Not only did he get his start-up loan, he's been in business for over ten years, which is a lifetime in the restaurant business. You might consider a similar approach.