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    3 Replies Latest reply on Nov 20, 2011 5:21 PM by phanio

    Need help in finding more funding for my start up restaurant

    jamrock Adventurer

      I recently try to open my own restaurant, which have been a life long dream of mine. This will be a Caribbean restaurant which will be located in the bristol Connecticut area. This is a very business and lively area so I sure to bring in alot of revenue. However, I am a young lady to the game, I came to the table with all my savings, I sign a lease to a building, and going through with the town. I feel like every department to get me open was running me around in circle. Now I run out of money to continue with finishing up and opening. I own rent and not sure when I'm going to open this restaurant. This is suppose to be a family business, and to also bring jobs to the town because this will be the only caribbean restaurant in miles.

       

      I would like to know how can I either get an investor or bank loan to finish and open, all the start up part is finish, just didnt know it was going to cost that much for me to run out of money so soon. Eventhough did not expect it to take this long, Its just a few here and there left for me to do then the doors should open, and yea lets not forget the approvial of all the towns departments. I am so disappointed in the town because I started this from April of this year. I don't want to give up on my dreams, I am a great cook, and I make everything from the beginning, and also have healthly drink, this will be great for the town.

       

      Also I heard stories about taking loan from investors, and they were not good, please example. I do have a business plan but not sure cause the last time I went to couple of banks they told me since its a start up business they cant lend me they money, not sure, I had great credit score 800, and two jobs. Please tell me what im doing wrong, really dont want to loose this place, great location. Help Help Help!!!!!!!

        • Re: Need help in finding more funding for my start up restaurant
          jamrock Adventurer

          I have been reading some of the other response, and notice most of the advice is to get a sba loan, if someone can please explain how to go about getting one and if that is a good stepping direction for me, I search the website for sba loan but still confuse........need advice thanks very much

            • Re: Need help in finding more funding for my start up restaurant
              phanio Pioneer

              Here is your problem - banks do not lend to start up businesses.  In fact, they only lend to profitable businesses who have been profitable for three plus years.  So, unless you have other collateral - like a house with equity - no bank will lend to you.

               

              Regarding SBA loans.  Yes, there are SBA loans for restaurants. But, the SBA only guarantees these loans.  They still have to be underwritten by a bank and as alredy stated, banks do not lend to start-up businesses.

               

              If you only need a small amount to open - and as you state you are working two jobs - you might be able to get a small personal credit card that you can use.

               

              You might look into a Micro Credit loan.  These lenders are vetted by the SBA.  Micro credit lenders can provide up to $35,000 for a new business - however, the average amount is usually around $13,000.  Do know that these loans can take 5 to 6 months to get approved.

               

              Another option would be to get your family involved.  You said this was a family business - well, get them to help out with the financing.  If they have no money, I would suggest you get out in your community and start to network with other business owners or business professionals.  Look for people that will partner with you. They put up the money and you put up the work.

               

              I would also suggest that you find a SBDC or SCORE office in your area.  They might be able to help you open the doors in your city's departments as well as help you find local funding.

               

              Lastly, never forget about marketing your business once it opens. If people don't know who you are, where you are located and what you offer, they will not ever find you.  Marketing is a huge expense that is ongoing.  The SBDC or SCORE can help you develop a marketing plan - and, they are free to use.

               

              Business Money Today

              www.businessmoneytoday.com

            • Re: Need help in finding more funding for my start up restaurant
              CorpCons08 Ranger

              jamrock,

               

              It sounds like you have been misguided. I am a consultant that deals with helping startup businesses get off the ground and running smoothly. If you would like to work with me on getting your business going, I could provide you with my e-mail address so you can send me your business plan.

               

              Regards,

               

              Dan