If you are thinking of opening up a restaurant, the brainstorming process is often the most affordable – you have a great idea for a certain type of food or restaurant experience and you simply write it down. The hard part comes when you try to take those ideas off the piece of paper and into reality. Indeed, starting a restaurant can have its hurdles – mainly because it can be such an expensive venture. Not only do you need to find the right location, but you must also have the right permits, licenses and so on. You also have to remodel, hire employees and get your kitchen stocked. It will seem like an endless process. Here are some places that you can look when trying to obtain funding for a new restaurant.
First and foremost, you need to look in your immediate network. Perhaps you have an aunt or uncle that would be generous enough to go into business with you. Your parents may even be the generous ones. Looking in your immediate network is often the best place to look, because you won’t have any steep interest rates and you won’t have to worry about taking the money of an investor who demands a major return. So, you may want to think of some ways that you can bring up the idea to your family.
Another place to look for funding is your banking institution. If you have great credit, you may be able to apply for a small business loan. A small business loan will require that you pay interest, but it may be worth it when it comes to getting your business off the ground. All you need is a strong proposal with all your numbers and a great summary of what your restaurant will serve. If you want to start a bakery, you may want to think about bringing a cookie or cupcake to your loan officer – it may help your chances.
?Next, you may want to look for funding in the crowd. Indeed, crowd funding is one of the best ways to raise capital these days. Plus, it is not really a loan – you get to choose the rewards that people get for their donation. To date, thousands of businesses have been able to open and start as a result of crowd funding. There are many different crowd funding sites where you can pitch your restaurant idea. If the idea interests enough people, your entire restaurant could get funded.
Lastly, when looking for funding, you have a lot of places where you can look for capital. However, it may help to work with a restaurant consultancy firm, like the Gilkey Restaurant Consulting Group, just to get a hang of the industry. You may also get the knowledge you need to attract investors and other partners. In the end, you may be hesitant to join forces with an investor at first, but the truth is that there are a lot of reasons why you may want to – most investors are flush with cash and can take your restaurant ideas and help turn them into a reality.