Question

Imagine yourself preparing to open a new restaurant. While you have never owned a restaurant yourself, you have over twenty years of experience in the industry, starting as a host(ess) and working up to a manager. You have approached many banks for loans, and have been turned down by all, since the restaurant business is very risky. What avenues might you pursue to gain the financing you need? For example, think outside of the box when it comes to considering how much you've expanded your personal and professional network due to your 20 years of work in the restaurant industry. If you do go the bank route, how might you overcome their objections to the risks inherent to the industry?

Answer 1

Since the case reveals that banks have turned out from the picture. Herein, since opening of a restaurant is just like setting up of a startup, hence the best option here is crowdfunding or angel funding. Before going into this, it is essential to first find a uniqueness of the idea of restaurant which can be like of different/specific theme, create a beta version of your plan, then moving to the pilot phase with the objectivity, then pitching the idea to investors for funding, wherein you can share the fixed amount to them as your startup grows.