Being interested in opening a restaurant, think over writing a "business plan." This important component of your work will help you manage and operate your own business and work toward its success. The business plan allows you to communicate about your business with others. They may be business people, bankers and partners. Looking for financing for the restaurant, the business plan will become the basis for the loan suggestion.
Many people have never raised capital before. But it is possible to do even for the "average person". This is because one can try to have others raise the capital for him or her, or one can try to look for financing by him or herself.
So, looking for financing from one large investor, you, as the restaurant owner may end up with a much smaller piece of your own business. If you try to look for financing by yourself, and you can raise money from relatives or close acquaintances, this can help you normally organize a much better deal for yourself.
With one's own money it will be better for you to start up a restaurant. It seems to be the best method of financing. There are many reasons for this. The first, this is the quickest form of capital to get, there is also no interest to be paid back. And the last, one does not have to surrender equity in the business.
In spite of this, opening a restaurant may be beyond one's immediate cash reserves. Then you must look for other sources of financing. Very often they may be the next:
1. Loans from relatives and friends
2. Borrowing from banks
3. Getting a loan from the Small Business Administration
4. Getting a loan from a financing company
5. Using suppliers as loan resources
6. Using your credit cards
7. Selling equity
8. Getting venture capital