Want to know how to find an investor for a restaurant idea? This article will give a list of options for you and your restaurant idea. Many very rich men started with a restaurant idea and then created an empire. How did they do that with limited funds and only a business plan in hand? A restaurant idea is both logical and practical in today's world. The two things that are always needed in this world are places to live and places to eat.
- Restaurant Ideals Need a Business Plan. Before you can hope to find an investor for your restaurant idea, you must have a business plan. The investor will need to know how much start up money you need and what is the potential of success. Keep in mind that the location of the restaurant is more important that the idea itself. A restaurant in downtown Alexandria, Kentucky will not make as much money as a restaurant in downtown Frankfort, Kentucky. Location is the key concept in any plan.
- All Investors Want to See You on Board. If the plan is so wonderful, then why are you not investing in the project? The project itself must include a partial investment of money or time from the owner of the project.
- Relatives are a Great Starting Point. Besides involving yourself in the restaurant idea, consider family and relatives as potential investors. There are many family owned business and those will include many of the same family. Some restaurants will take a great deal of money for building permits, inventory and such.
- Existing Restaurants for Sale. An ideal situation for both you and the investor is to find an existing restaurant that needs to be sold. The building is in tact and many customers also. Most pre-existing buildings will want the owner to place a second trust deed on their primary property to secure the lease. This is something that should not be entered lightly. The investor who will join you in this project will usually not use their own property, but will come up with the funds.
- Contacting Franchise Owners for Potential Restaurant Ideals. Many times a large franchise will look at potential ideas and sites for a new location. Large franchises will pay a commission to the person bringing the ideal also. Be prepared that you must have parking available for franchise owners to consider a property. Many corner lots that would be ideal for a hamburger franchise may not have sufficient parking available and thus the deal would not be approved.
- Private Financing Investors. There are many banks and lenders who work directly with private investors. There are large lists of private mortgage brokers who can set you up with one of their investors. A well written business plan with a large margin of profit will attract investors quickly. Sometimes when looking for investors for your restaurant idea you must hire a professional to write up the business plan and proposal. Any investor who will look at your restaurant ideal will want details, property reports, parking availability and zoning regulations. Having a restaurant ideal is more than just what kind of hamburgers you want to sell.