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finding investors

post #1 of 5
Thread Starter 
does anyone have anygood tips on finding investors to help with start up costs, i've looked at a few on-line sites but they seem to be geared toword already running restaurants.
post #2 of 5

No tips, sound advice

Having owned a restaurant, then a hotel and now an internet company I will tell you how I got that first crucial Loan.

First you need to do a comprehensive business plan. (1st and 2nd year)
Secondly you need to do a profit and loss forecast (1st year)

Update your CV, make it look good.

Then you approach as many commercial banks as you can find and see who offers the best deal.

If you have put all the above in place and the loan to value of the property is an acceptable percentage (usually 75%) then they will lend the money.

Forget investors they usually want more equity than the capital investment they put in.

Good Luck

post #3 of 5
Mary rich, find a sugar daddy/mamma
post #4 of 5
I have to agree with tcapper - private investors can eat you alive in a very short time. Often times it's simply a matter of control. You want to control the business you're building, they want to control the manner in which their money is being spent. Not a beautiful thing. When their investment doesn't grow as quickly as they might have expected they can get pretty cranky. Only thing I would ad is to work your tail off and put away a nice nest egg that shows you can grow capital. If a banker refuses your loan request try to get him/her to explain what you could have included in your presentation to convince them to say yes. Many of them will give you hints on how to build a better business plan for your next attempt.
post #5 of 5
Funding is truely the most difficult thing in a restaurant adventure. SBA loans are sometimes attainable with a good business plan, but as stated earlier, they don't cover a large percentage of your total needs. Conventional Bank Loans are almost impossible to get. I had some success finding investers, but it was through word of mouth and ended up being someone we knew already that was impressed with our business and came to us asking to invest. Good Luck out there - Restaurants are very tough to get funded. Visit my website for details about my National Essay Contest. I am giving my restaurant away - its the very best deal you could hope for! www . Sweet Peas Bistro . net
Time is running short! Future Restaurant Owners act now to start living your dream today. www.sweetpeasbistro.net
Time is running short! Future Restaurant Owners act now to start living your dream today. www.sweetpeasbistro.net
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