Almost half of all Americans have worked in the restaurant industry at the appropriate time, and 46% of restaurant employees are keen to own a restaurant someday, despite the fact they learned from experience its traps and pitfalls. Clearly many people eager to own a restaurant. Some say that setting up own restaurant is a risky enterprise, but no one has ever thought about how to keep it afloat after running it for a year or half. That is not about you can get fed up of responsibility it involves, it is about to weather the storm of financial situation you can face at the time you spend startup capital. Restaurant business loans can be a splendid decision if this is the case.
Business Loans for Restaurants
800fund.com is an alternative lender that provides different lending programs for established companies and 20% of its borrowers are restaurant owners. Getting restaurant financing from 800fund.com is a breeze. However, before you apply for this, you have to take over your establishment. What? You still hesitate whether you should set it up or not? This article is to give you a hand with solving this issue.
If you can’t bring yourself for a restaurant startup still guessing it is not profitable and there are numerous of industries you can operate in, here is rapid analysis reported by Statistics Portal:
- $782.7 billion – total amount of last year sales.
- More than 1 million restaurant locations in the U.S.
- Restaurant workforce is 10% of the overall working Americans.
- Sales volume is $2.5 billion higher in June 2016 than in June 2015
- 8 out of 10 Americans prefer small restaurants, cafes, bars, etc.
Well, hope these facts were convincing enough to have one question on your mind: “how to start a small restaurant business?”
How to start a small restaurant business
You cannot do well for your restaurant without a chef, who knows his onions, an appropriate location, and not too shabby concept. The concept carries chef and location, in case they both do not fit the concept – this will not work singly. Get down to your restaurant’s accessibility both regarding the location and in a broader sense.
Before writing a business plan for your establishment, check the most successful restaurants out location, brand, and price. Small restaurants are gaining traction as they are amazing on all these levels. Once your restaurant is opened and looking good, the work does not stop there. You will need to draw up a marketing plan, train staff and monitor your cash flow and budget carefully.
Many new restaurants see a major slashing in business after about 6-8 months of operating; at the time they do not earn enough working capital to take the business to the next level. That is when additional investment is critical. Do not wait to see whether your restaurant will catch on or not. Determine the amount needed to put into improvements and to save for required purchases and study restaurant funding market.
How to get a loan for a restaurant
While dreaming of opening a restaurant, it is always easy to overlook the financial requirements you face as a restaurateur. Thus running a restaurant often requires funding, whether it is from family and friends, banks, business credit cards or alternative lenders. Apply for government grants for a restaurant before seeking a loan, keep your fingers crossed, come up smiling and let alternative financing for small businesses grandstand you.
It goes without saying that not all restaurant loans are created on the equal basis. Certain financing will be a better fit, depending on how you are going to use these funds: for everyday expenses, inventory purchase, promotion, renovation, etc.
Business loan for a bar
Speaking about the small restaurant, it is also referred to the bar. Same industry, same problems, same needs. Owning and running bar seems like fancy and profit-making work, although it also comes at a price at the proper time.
Just fancy an extremely competitive establishment that only serves post-teens of the overall population. Then, add in the fact that there are significant costs to run a bar, typically high turnover of employees, and a fluctuating customer base that will go over to the newly opened bar across the city. Bar owners require small business loans to cover a wide variety of expenses, such as:
- Maintenance of Equipment
- Hiring Performers or Acts
- Legal or License Issues
- Utilities Costs
- Beverage Taxes