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I have $13,000 cash on hand.....?
Is there any way that i can apply for a small business loan for a small restaurant? It will be a cafeteria styled restaurant where customers will have a choice of one of a variety of meats, 2 or 3 sides, a dessert and choice of beverage.....delivery will also be available...I'm nearly done with my business plan, and i have done several dinner parties for friends, family, and associates...reviews were positive...2 years ago - 4 answers
I would stay working on cash for now.
Eliminate costs, doing catering and not having to pay rent.
Better $$$, less overhead costs and high profits.
Get a pasty person and that will add to your profits.
restaurants have a mortality rate. Keep it in the bank for now and work for someone else.by The Count - 2 years ago
It's possible to apply for a loan. It's doubtful one would be extended. Usually you need to have at least 30% or more of your own money invested. Also, you need to have a proven track record. Finally, you need a lot more collateral.by Yirmiyahu - 2 years ago
I hate to be the bearer of bad news but here goes. If the only food service experience you have is doing a handful of dinner parties save yourself $13,000 and a lot of grief by not opening your own restaurant.
As others have said it is highly unlikely that you would get financing as restaurants are very high risk and without sufficient collateral it's almost impossible to get a loan.
Before venturing out on your own get real food service experience. Start at the bottom and learn every aspect of running the business from cleaning the toilets, cooking, purchasing, accounting, marketing, serving and inventory management to name a few.
While you are in the learning curve save every penny you can and add that to your $13,000 so have some capital to work with.
After you have this type of of experience and fully understand what it takes to run a successful restaurant look for restaurants for sale in your area, there will be quite a few. A lot business owners will finance the purchase for you, this is very common in the restaurant business, and a lot easier than trying to get bank financing.
I've been in the restaurant / bar business for more years than I like to admit and the biggest reason I have seen for failure is inexperienced operators. Get the experience, gain the respect of restaurant owners in your area, build your clientele while working for others and you should be on your way to success.