The amount of money you will need to start a restaurant will depend on several factors, including the equipment, the amount of marketing, the number of employees, the capital needed to keep the business in operation until it starts to generate profits, among others. However, you don’t have to go big on spending when starting up. Remember, you’re just starting out in the face of uncertainty and you may not be a 100% sure if the business will hit the ground running. So isn’t it wise to start small and grow? We’re not saying that you should not spend but think of Jim Amaral, the proprietor of Borealis Breads, for instance. He built the bakery from scratch, having borrowed $10,000 from friends and family.
Regardless of the amount of money needed to get started, the fact remains that you will need some cash to kickstart your business. You think your personal savings are not enough? You can outsource funding. Here are a few suggestions:
Family and Friends
Family and friends can be a good source of income as long as they are willing to help, of course with no strings attached. However, it doesn’t matter how close you are with your friends and relatives, it is prudent to present yourself in a professional way. If possible, present your plea in writing as a way of demonstrating your seriousness to the person. Be ready to provide any information they may need as some of them will seek to know if your business idea is viable or not. They simply don’t want to throw their hard-earned money into a dustbin.
You can take advantage of the government programmes designed to fund start-ups. The good thing about these programs is that you may not need to pay back the money. But you don’t have to be in the comfort zone just because you got free money. Even if you have to work to the last drop of your blood for the business to succeed, do it. As they say, second chances are rare.
There are many people out there with financial resources but don’t have a business idea and they need somebody like you. You can take advantage of such people, but just beware that they will demand to have a stake in the business before they can splash the cash. So be careful when striking a partnership agreement with such people. Know your rights and obligations right from the onset.