Forums: Discussions for entrepreneurs and small business.

Hello,

My name is Jim and I am a 49 year old cook/chef and I have been working in the restaurant industries for over 32 years, I have an opportunity to start my own family restaurant that is located in a great location.

 

The place use to be a restaurant/ truck stop for truckers and traffic from others that are locals going to work or vacationers. However when I went to the restaurant to see what it looked like need say I was impressed by the size of the place but when I got to the kitchen area I became very disappointed, the restaurant has been closed down for 3 years due to the previous owner was caught by the dept of health for using a regular water hose that ran from the restaurant to a local mobile home park, well make a long story short he also took everything out of the restaurant including the kitchen sink if you do not believe me you can visit my website that has the photos of the restaurant and the view of the kitchen as well, now with that being said that means I have to replace all that was taken.

I have attempted to try to get loans from a bank and was declined due to my credit score is low and I was informed by the bank that i could try to find a co signer or try something called unsecured loan by using a person that has great credit and they would be removed from the loan after 3 months so nothing will go against the person who has helped me in obtaining a loan through them.

Well as you can see I was unable to do that as well.

I have researched the area on other restaurants in the area and where the restaurant is located the nearest restaurant is located 6 miles from both directions also it is located off the main highway as well as next to the Toyota Manufacturing Company and Power Plant.

I know finding an investor or angel investor is a tedious job and there are a lot of risks in their eyes, like how much will the company make, is it worth giving money to a company or business that is looking to start up his or her first restaurant etc.

Trust me if I was wealthy or had the funds I would do everything without hesitation, so now I am here asking in my starting position what should I do or whom can I go to to get this restaurant operational.

The restaurant will also be doing caterings.

Can someone send me in the right direction to someone that can help me get started without me aging to almost 60 before I get it off the ground?

Thanks

Jim

 

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Unfortunately there are no easy answers for you. Finding funds for a new start up is difficult even with the best of circumstances.

You won't find an angel or other such investor because they generally want to put their money in a proven business with a fairly certain return on their investment.

For a restaurant you will need at least $100,000. So peer to peer loans are out. Forget about SBA loans. As you've discovered banks required excellent credit and you need to bring at least 20-30% to the table as a downpayment. Plus you need to supply strong collateral.

The way I see it, you either need to find enough friends and family to pitch in loans or donations or you need to find partners willing to go in on this with you. Of course if  you have no money at all to contribute that in itself will be difficult.

Get yourself a 2nd job and start saving. Sell off some assets. Bootstrapping is your best bet. If you can save up a good portion you can then request peer to peer loans for a lesser amount. It takes  hard work and discipline but if you want something bad enough you can make it happen.

 

 

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Sylvia Business Plan Mentor

I would have to agree. There is no magic wand that produces startup funds, but that doesn't mean that your goal isn't possible. Here are just a few places you may be able to find some cash to start your business:

 

• Savings and Investments
• Credit cards
• Band Loans
• Friends and Family
• SBA guaranteed loans
• Government grants
• Personal investors
• Venture capital

 

Good luck!

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In what area do you live? Different states and cities have different programs for business owners. If I knew what state and city you live in I could help point you in the right direction.

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Aggressively seeking business start-up capital for a project called Veteran Live Work Lofts. All suggestions on fund raising and steps to ensure project success are appreciated.

 

lol, Jim if everything was super easy there wouldn't be any money to be made because everyone would be making it already.

Over hurdles is usually where all the money is.  If you decide to work to get over the hurdle, you'll probably find some money.

Shame on those investors for wondering if they'll see a return 

You're chasing money right now.

Stop chasing money and start seeing if you're providing value.  Then find out if you can make it valuable for the investor.  Then you make money.  You're doing it backwards.

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