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    0 Replies Latest reply on Mar 27, 2010 12:06 PM by jointhebirds

    Opening my own restaurant, need financing advice?

    jointhebirds Newbie

      I have over fifteen years in the restaurant business. The last six have been spent working as operations manager for seven casual dining restaurants in a city. I have come to a crossroads to where I have grown out of my position so to speak. I can either get another job or struggle to open up my own place. I've always wanted to open up a breakfast restaurant. These types of restaurants do very well here.

       


      The facts:

       


      I have opened restaurants before with the company I work for now.

       


      I have the experience necessary to start my own concept and expand upon it. When I tell lenders, brokers, and landlords of my current position and the company I work for, they are very impressed. The company I work for is a very well known and respected local brand in the area.

       

       

      I have virtually no capital and no collateral. I have virtually no savings - less than $5000. I own my own home, but have no equity in it.

       


      I have stable credit, the only debt I have is a mortgage payment, a large one - $2380 a month, two car payments at $280 and $380 a month, $1400 in utilities and insurance payments a month.

       


      Family and friends are probably not a good source of financing at this point. My father in law has money but is very wary of entering into business transactions with family.

       


      I have some friends that are into banking and commercial real estate and they are talking to people about raising equity for me. They have found me a broker to help me find a space.

       


      I am putting the finishing touches on my business plan and am about to send it out to every one I know. The concept is great - I know it can work. I just need to get over this money hurdle.

       

      So I guess my question is what are financing options for someone in my situation? Can I do this when I don't really have collateral. Do I go for private investors or do I go for an SBA backed loan? And is this possible? Thanks in advance for the help!!!