First of all, How much money do you have saved to bootstrap your business?
Secondly, How much do you know about the CAFE industry? Do you have any background in Managing and running a Cafe?
Do you have any behind the counter experience per say; Seving coffee, latte`s and so forth? If the answer is no?
Why not try working at one to see if you like it or not. Remember a
200K loan is a Huge commitment whether it`s on your personal credit or
What if you do get a loan? How are you going to repay the loan? Have
you thought of the what if`s? See Cafe`s are too risky and the banks
know that. How do I know? Because at one point in my life I wanted to
open a Cafe: My plans were to have a Sober Up Friday afterhours joint
where people would come and sober up after a night of drinking (this
was going to take place in Down Town San Jose,CA).
The idea was good. But the Cash Down to start my idea was huge. So I
decided to get a part time at a local Cafe to see what it would be like
to operate one. I quit the first week! Why, Im better at drinking
coffee than serving it.
My point, make sure that`s what you want to do for as long as it
takes you to repay the loan and for the rest of your life. (if you are
real serious about it)
As for the Business Credit, It would also take some time to build
the credit, but you can use that as second round funding to push your
business to the next level.
In the mean time why not talk with family members and friends see if
they are willing to help you. But honestly, avoid using your own credit
to fund your business. (how do I know? I made that mistake when I first
started my business) and I had my taste of good and bad experiences
until I incorporated. Now Im working on the Business Credit and
repairing mine at the same time.
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!