Tips to Start Your Restaurant

When it comes to financing your restaurant business, there are several ways you can go. Banks and commercial lenders will ask that you put a portion of your own money into your restaurant business, before they will think about lending to you. You will fare better if you have experience in the restaurant business, the stronger, the better. If you have a strong background working in a restaurant, you should be able to get your loan without too much red tape. If you do not have a great deal of experience, you may want to gather more by taking a job with a restaurant. You may also want to take a college course in restaurant management.

You can obtain financing several ways.

• The Small Business Association– they have several regular and specialty loans to suit your particular situation.

• Your own money– IRA accounts, home mortgage, personal savings and other assets, and friends or members of your family.

Angel Investors– private investors who will lend money for small and large business ventures. There is quite a large group of Angel Investors in the United States. You can find them at the angeldeals website, and by networking with those who have started a business of their own. Continue reading…

So you want to start your own restaurant business but your worried you can’t raise the finance you need to set your business up, if so this article is for you. I will cover the different options that you may want to think about where you can get finance for your new restaurant business, the following are: -

· Your friends and family - you may think this is the best option if they have the finance available for you, but you have to remember they will only have a certain amount of money available and proberly wouldn’t be able to give you more if you ran into trouble and also you may feel bad not being able to repay them as quickly as you thought you might be able to, as making a profit in a business can take a good year or even more. You will also have to discuss what interest you would give them, all this may cause problems with your relationships with the person or persons is it worth it, give it a thought.

· Your savings - if you have a good amount of savings you may be able to use them for your new restaurant business, it depends on the amount you have saved. This amount may run out quickly and if it does you would have to have a plan b in which you could get finance from elsewhere. Continue reading…

Business start up loans- an assurance for financial assistance for establishing new entrepreneurships. If you personally desire for setting up your own venture, you can take the help of these loans. With these loans, you can easily finance your new production.

Business start up loans are available in two forms-secured as well as unsecured. If you want to arrange money in the secured way, you will have to place something against the lending amount. Usually, the right of a security is kept with borrowers until the amount is repaid fully. Borrowers can use their any valuable asset as security. One can use his home, other real estate, automobile, jewelry etc. as a security. Here, it needs to be mentioned that if your security is more worthy than the lending amount, it will ensure you about getting a higher amount. On the other hand, in case of choosing the unsecured option, borrowers are not asked for pledging anything against the lending amount. This option offers tenants as well to finance their business.

In case of secured option, the interest rate is lower, as these loans are secured on borrowers’ property. But, it increases the probability of collateral repossession. Though, unsecured loans are available at a higher rate, but such kind of risk is absent in this option. Due to this reason, not only tenants, but many home owners also prefer to capitalize their business with unsecured option.

However, as business start up loans, borrowers can avail the amount, ranging from ? 5000 to ?100000. Based on the borrowed amount and lenders’ policies, the repayment period is determined. In general, this period is decided in between 3-25 years.

Normally, before offering business start up loans, lenders try to verify the business type, borrowers’ repayment capacity, sustainability of the business etc. Therefore, enclosing some necessary documents with the application form is necessary. These are like,

•A brief about the business, which should be mentioned clearly

•Required amount should be mentioned Continue reading…

Running a small business can be a difficult undertaking luckily there are a number of ways you can receive help that you may not even have to worry about paying back. The government offers a number of grants to small businesses to do a variety of things in order to increase the chances of that small business succeeding. The first thing to do is check and see if you qualify for any grants. One of the ways to do this is to check with the chamber of commerce or the better business bureau.

These locations may have information on grants that can help out small business owners who are looking to set up shop in that area. There are many areas that offer grants to small businesses just to get them to open up or they may be offered in order to keep a small business alive within a given area, which may be suffering from a lack of businesses. You can also check with a number of websites, which can list grants that are available to small businesses within your area. The types of grants vary. There are grants for equipment, rental expenses, there are even some grants that can help to pay employee expenses such as for benefits or can help you with your living expenses if you are a single employee business. Continue reading…

Small business startup loans aims at providing financial help to people who want to start their own small business. Small business startup loans can be availed by both good credit holders and bad credit holders. It is basically of two types, secured and unsecured. To avail a secured small business startup loan you’ll have to place one of your properties as collateral against the loan amount. This can be any of your personal property like car, jewelry, bank balance or can be your commercial property also. On the other hand you don’t have to place any collateral in order to avail an unsecured small business startup loan, but the interest rate is slightly higher compared to secured small business startup loan. The loan amount that can be availed with small business startup loans ranges from £ 5000- £75000. The loan amount depends upon various factors like credit status, repayment ability, value of collateral etc. The repayment duration of small business startup loans is quite flexible and ranges from 5 - 25 years. The interest rate of small business startup loans is quite low. You can further lower it opting for secured small business startup loans. Lenders charge slightly higher interest rate from bad credit borrowers due to the risk factor.

There are certain prerequisites fro availing small business startup loans. These are

1. Business profile document- you will have to mention all the details regarding the type of business you want to start, what are the requirements, your plans to make it successful venture etc.

2. Loan request document- in this document you will have to mention the details regarding the type of loan, amount of loan, period for which you want to avail the loan etc. you can also mention any special perk that you want in this document. Continue reading…

What is the biggest problem facing business owners? It’s simple. Not enough money. Money is the lifeblood of business. The goal of creating a business is to make money, but before you actually make money, you need to spend money.

You need to spend money to get started. Depending on your business, your start-up costs can range from minimal to enormous. An internet business doesn’t take much to get started. A brick and mortar business requires substantial capital investment. Buying a franchise can cost tens of thousands of dollars. Whatever your business, you need money to get started. Most businesses start out undercapitalized and never catch up.

You also need money to run the business. “The cost of doing business” is more than a phrase. It is a harsh reality. You have to pay for facilities, personnel, sales, marketing, advertising, supplies, licenses, taxes, fees, and myriad of other expenses. Most businesses start out anemic and end up bleeding to death. There is simply not enough money to create a profitable business.

So what do you do? You can apply for bank loans and venture capital. You can borrow money from friends and relatives. You can use your own money. Each of these methods has advantages and disadvantages.

One of the easiest and most effective ways to get money is to use cash advances on credit cards. Yes, the interest rates and fees are high. But it all becomes a matter of economics. If a cash advance keeps you in business, it buys you time to create a profitable business.

How do you get lines of credit on credit cards? One of the most important business decisions you can make is to set up a business structure that will allow you to build business credit.

One option is to do business as a sole proprietor. This is a truly risky proposition, since you are mixing your personal and business finances. Under a DBA business structure, you cannot build corporate credit apart from your own personal credit. A failure in the business means a failure in your personal financial life. Continue reading…

Many would-be entrepreneurs who are long on vision but short on capital think that “angel” investors are the way to go for start-up capital, and they very well may be. Before approaching them, here are 10.5 things you should know:

• 1) Angel investors generally participate in the early stages of a company’s growth; they will plan an exit strategy to recoup the capital they have invested within 3-5 years. At that point they expect their companies to have enough of a track record to be able to attract capital from sources that can invest a greater amount but are more risk-averse; for example, though a sale of the company. This may be through a public offering of shares (an Initial Public Offering, or IPO). Angel investors will typically sell their shares in your company at that point.
• 2) They want to make money and will cull over many proposals to find companies that they feel will be successful. Even so, they are realistic enough to know that not all of their angel investments will succeed. The success rate is typically around 30-50%. Therefore, they try to balance long shot investments with those that are more likely to succeed.
• 3) Unlike venture capitalists, they are often motivated not only by the prospect of making money but also by the desire to be involved in the operations of their companies as advisors or mentors. Often angel investors are people with management expertise themselves; they may want to nurture the growth of their companies by participating in such management activities as strategic planning or marketing.
• 4) They will want to know a lot of things about you and your proposed venture, foremost among them whether you have put your own money into it: have you, or are you willing to, take out a second mortgage on your house to fund it? Have your friends and family invested in it? In the language of angel investors, this is known as “having skin in the game.” If you can’t answer yes to these questions, they will probably conclude that you don’t have enough confidence that your idea will succeed in the marketplace to put yourself on the line. Why, then, should they have enough confidence to invest in your venture?
• 5) To a certain extent, they will expect you to understand the limits of their knowledge: what they know and don’t know, and to present your proposal accordingly. One of the things they will probably not know is the extent to which your idea is unique and protectable - particularly if it involves intellectual property, as many new companies do today. Speak to these issues without prompting.
• 6) They look for certain personal characteristics. Have you shown that you have integrity? Do you communicate clearly? Listening, which is perhaps better called “hearing,” is both a necessary and rare skill. And express yourself in a lucid fashion; this includes speaking English to them rather than the language or jargon of your field or its technical details. Continue reading…

• 6 Ways To Fund Your New Business
• Seven Alternative Sources of Capital for Setting Up a Business
• How To Finance Your Restaurant Business

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According to a report recently released by the Census Bureau of the Department of Commerce, minority-owned businesses grew more than four times as fast as U.S. firms overall. Since 1992, these businesses have increased from 2.1 million to about 2.8 million firms.

Part of the reason for this unexpected growth is because the government is making more grant money available.

Minority Grant Money is a type of funding given to deserving individuals belonging to a minority. The funds may be for the purpose of fostering education, benefiting a community where most of the population is made of minorities, and generally facilitating development in every avenue.

Grant money may also be given for projects, or for things like research, scholarships, or seed money. A project or a program is a creative plan of action that has a specific goal, usually community-based. Grantors generally want to fund new and innovative programs. So if you have a new program in mind that has never been done before and designed to help forward the cause of minority groups, then its possible for you to get government funding for that program.

However, if you feel that your idea is not innovative enough, take heart. There are instances where grant money is used to fund programs that have already been implemented. The only criteria, in this case, is that all previous programs similar to yours should have proven successful.

Info: Minority small business grants can assist in starting a new business or maturing an existing business. There are several small business grants available that are strictly for the minority population including the disabled, elderly, and women.

If you are an small business owner that is a minority and you are looking to obtain one of the small business grants you need to be able to tell them how your business would survive if you didn’t get the grant. The minority small business grants board will be looking for a three to five year business plan from you. They will want to see where you have been and where you plan to take your business.

Top Business Resources We will have to learn and study the details

Borrowing from banks is every small entrepreneur’s nightmare. One gets turned down for bank loans for a variety of reasons, including lack of assets, collateral and business experience. Don’t despair, however. There are several common types of alternative sources of capital for setting up a business available to young companies.

Savings and Investments

The first source you should consider is your own savings and investments. One disadvantage though of self-financing is that if things did not turn out the way you want them to be it will be your money that goes down with the ship.

Angel Investors

Angel investors are affluent individuals who provide capital for a business start-up, usually in exchange for ownership equity. These individuals are looking for a higher rate of return than would be given by more traditional investments (typically 25% or more). Angel investors are an excellent source of early stage financing and high-growth start-ups. They are often willing to tread where there is too much risk for banks and not enough profit potential for venture capitalists. And since angel investors are often retired business owners and executives, they can also provide valuable management advice and important contacts.

Peer to Peer Lending

Peer-to-peer lending is a means by which borrowers and lenders may transact business without the traditional intermediaries, such as banks. It can also be known as social Lending, ordinary people lending money. The process may include other intermediaries who package and resell the loans–examples are Prosper.com and Zopa-but the loans are ultimately sold to individuals or pools of individuals. Prosper.com, which is available in the US only, offers business loans for small companies.

An enabling technology for peer-to-peer lending has been the internet, which connects borrowers with lenders, for example through an auction-like process in which the lender willing to provide the lowest interest rate “wins” the borrower’s loan. (wikipedia.com)

Money pool

Instead of a bank loan, borrow smaller sums from several family members, friends, or colleagues. The lenders have no legal ownership in the business, but can act as advisors and cheerleaders for your venture. Remember though that nothing causes tension in a family like lending money that is never paid back. Continue reading…

Every restaurant owner is fully aware of the limitations that space and equipment can place on their businesses. If you are a restaurant owner and your restaurant is full most nights, then chances are that you are turning away business. Turning away valuable business equates to revenue losses and can stifle your overall business growth. If you realize that you are not able to accommodate all of the customers who wish to dine in your restaurant it may be time to consider renovating your facilities. A restaurant cash advance can be a good way to facilitate this process. And it is the most immediate way to resolve the situation.

A cash advance can provide you with the capital that is required to expand and upgrade your business without the delay of undergoing the long and tedious loan process. Every day that you must wait for a needed expansion means added loss of customers and business. This is why a business cash advance is an exceptional option.

Before using your newly and conveniently acquired capital via a cash advance, you should consider the options that you have for expansion. You can extend your existing building, in some cases this can be accomplished by renting additional space, you can move to bigger facilities, or you can open an additional restaurant.

If you are in a building where it is possible, renting additional space is perhaps one of the easiest expansions you can make. Your main expenses will be in tables, chairs and décor. You will of course have to factor the additional rent into your budget as well. If you have your own land, you may be able to extend your building. Creating an al fresco dining area is one method of extending your restaurant. You may also be able to make use of basement or attic space, providing it is suitable. Continue reading…