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    1 Reply Latest reply on Dec 16, 2008 5:53 PM by NoBullFunding

    Starting a fine-dining Restaurant

    Ralston Newbie
      Hi,

       

      I have a question about writing a Business Plan. I have purchased the Business Pro software and I would like to know about the content that is required for a "start-up busniess". I have chosen to locations for my fine-dining restaruant+.+ The first location is Santa Monica and the second is Sherman Oaks, Ca; I have performed the demograhpics. The sq ft will be 3000, seating will commodate 70 people, and I would like a outside seating area for 30 people. I have my EIN number from the IRS and all required licensing & permits forms for the state of California. Presently, I have two semesters away from completing my Associates in Business Management at the University of Phoenix online courses. I will continue on to completing my Bacholors of Business Management while operating my restaurant. My question is what are banking institutions and SBA looking for within a business plan to loan money to start-up businesses that has not lease a building, required business license or permits, hired employees, etc. The start-up money needed is $300,000. Moreover, are there any CA grants or loans a small business owner can apply for?

        • Re: Starting a fine-dining Restaurant
          NoBullFunding Scout
          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!