As a first-time restaurant owner, raising the needed funding for your business can feel near to impossible and tiresome. Naturally, first-time owners will find difficulty raising funds due to their limited access to capitals. Investors look for proven experience not only as a manager but as an owner as well.
This article aims to provide the necessary tips on how and where to look for investments and what to do for your business in order to increase your chances of receiving funding.
Self-fund
It is important to understand that opening a restaurant demands hard work and in-depth planning in order to establish a clear concept and business model. Find out more about what you need to do in order to open your restaurant here.
The restaurant industry can come with many risks and it is advisable to prepare for these risks by raising money dedicated to the restaurant only and not using your own savings. Ask a friend or a family member to loan you the money so you can enter the business with enough confidence and stability.
Find Partners
For a first-time restaurant owner, finding the right partnerships can propel the funding process forward. Partnerships allow you to share your profits and loss especially if you look for partners who possess a solid experience in the industry.
For the most beneficial partnership, you should look for people who share the same vision and concept as your restaurant, someone you believe can help your business and introduce it to a wider range of audiences. Prepare and pitch a detailed business model on how a partnership can help both establishments.
Get a Bank Loan
Bank loans can be a great start for your restaurant investment pool, but acquiring them can prove to be tricky. Evidently, banks require a lot of documentation and paperwork before accepting loans. In order to increase your chances, a proper business model and suitable collateral need to be prepared.
Get VC Funding
The restaurant industry has seen many changes throughout the last years and investors are paying attention to it calling the industry an “Investment Interest”. There is enormous potential for the field especially after the unfortunate pandemic, which forced business owners to pivot and come up with new technologies and solutions to adapt to the current state. However, Venture capitalists usually invest in the concepts and formats which are already successful with more than five profitable units.
Foodics sees the potential and understands that small businesses and startups are the backbone of the industry and that is why we have launched Foodics Capital, a new program for startups and SMEs using Foodics POS that provides flexible and easy funds tailored for the success of your business.
