Post a new topic
    5 Replies Latest reply on Nov 24, 2009 12:38 PM by asemerson

    Need help and advicve for a Startup restaurant.

    LittleNoggins Newbie
      Hello all,
      I was wondering if anyone could give me advice on where to go to get funding for a start-up Indian Restaurant. I am located in Novi, Michigan. I have put together a great business plan and know I will need about 600K to start-up the restaurant. The 600K is funding to run the restaurant for 6 months after which I anticipate letting the profits carry the restaurant financing forward. I have gone to several people at SCORE with my business plan and have gotten it completed. I am having trouble finding investors in this market. Banks will not even consider loans for start-ups.
      Could someone know where I can find investors or what my options are? Should I finance it all on 30 different credit cards or what? Please help.
        • Re: Need help and advicve for a Startup restaurant.
          LUCKIEST Guide
          Need help and advice for a Startup restaurant, Welcome

          First go to Members page and tell us more.

          To find investors you been a Business Plan.

          Can I read your business Plan

          LUCKIEST
          • Re: Need help and advicve for a Startup restaurant.
            AndrewRSA Wayfarer
            I'd love to get a look at your business plan and see if I can help. Even in this environment, you should be able to get your hands on some money. At long last, banks are starting to lend, but even more to the point, there are angel investors out there with cash on their hands who still think equities haven't hit bottom and are looking for a good place to park their cash. Most of my clients who have been raising capital over the last 18 months have drawn it from private individuals, but the key is a very good business plan (not so much for the document itself, but for the exercise of making one). For that reason, the free template approach that's widely available is not a good one.

            I have to be honest with you. While I don't know the details of your plan, I'd be wary of relying on profits after six months. If you'd like to talk over the phone, I'm happy to do so.

            Andrew Levinson
            Managing Director
            Riverside Strategic Advisors LLC
            • Re: Need help and advicve for a Startup restaurant.
              Tracker

              LittleNoggins:

               


              For financing, you I recommend that you seek out a contributor in this community that goes by the nickname "phanio". He offers excellent advice on how to break down large loans into smaller amounts focused on specific needs along with the where and what for securing the funding.

               


              I recently sold a restaurant that I owned and operated for a number of years. Plus, I currently assist people with business consulting and developing of their business plans. So if you would like another set of eyes from someone that has been in the business that knows realistic numbers, feel free to forward it to me at thesologuide@gmail.com.

               


              I have to agree with AndrewRSA. I am curious to see your plan and numbers for hitting profitability by the 6-month mark. Sounds very aggressive to me.

               


              All the Best,

               


              Doug Dolan

               

              The Solopreneur's Guide

               

              http://thesologuide.com/
              • Re: Need help and advicve for a Startup restaurant.
                asemerson Newbie
                One option is to find financing from a company or division of a bank
                that specializes in restaurant loans. Keep in mind the differences
                between financing your venture with investor capital versus with a
                loan: your choice between the two depends on whether you'd rather deal with diluting
                your ownership by getting a capital injection or the
                additional risk of having to pay back a loan if your business fails.
                The degree to which you are obliged to do the latter depends on your
                business structure and practices, so in the end (as is the case with
                many business decisions) you may want to consult a lawyer.

                In regards to companies that specialize in restaurant loans, http://advancerestaurantfinance.com and
                http://fastupfront.com seem to be the biggest players. I know Wells Fargo also has a division that specializes in restaurant loans (BOA likely does as well), but as mentioned before those companies may not be offering these loans at this time.