When entrepreneurs are in the process of starting up a food service business, the frenzied search for restaurant angel investors often begins. The restaurant business is unique in that it very often requires a great deal of upfront seed money in order to finance the cost of a new or remodeled building, kitchen equipment, furnishings and dĂ©cor to make it have the right atmosphere. Additionally, restaurant investors are needed to fund the marketing of a new restaurant months, even years later in this competitive market.
In all the excitement of starting a new restaurant, itâ€™s vital to line up a continual source of reliable angel investors. How do you find angel investors for restaurants to make your dream of starting a new restaurant a reality? Here is how to put yourself in the right place to get the support of restaurant investors.
Business Partners â€“ Thereâ€™s a fairly good chance that you already know some potential restaurant angel investors within your current network of business colleagues. Many times serious minded business people spend time looking for ways to invest in the future, with the eventual goal of retiring or living a more comfortable lifestyle. See who among your friends and business colleagues may be interested in becoming angel investors for restaurants, or those whom they may know.
Angel Investor Websites â€“ In addition to personal networks, there are a wide range of online resources to help get your restaurant launched. Good places to start frequenting are angel investor websites that bring restaurant investors together with entrepreneurs. Search regular angel investor website directories for those who specialize in food and beverage start-up capital. Create profiles that indicate your desire for restaurant investors to contact you and you should start getting inquiries in a short period of time.
Other Restaurant Professionals â€“ When looking for ways to raise capital for your new restaurant, one of the best places to search is within restaurant associations and community groups. These are groups of people who either have an interest in working with restaurant development, or they support several restaurant ventures from a silent partner aspect. Many members are actually in the process of looking for promising investment opportunities to further the success of the local culinary field, so approaching them makes sense. Get the word out that you are looking for angel investors for your restaurant as soon as possible.
Investor Networks â€“ If you do a check of general investor networks, youâ€™ll likely find a handful of restaurant angel investors who will gladly hear your business plan for consideration. Be sure to set up a meeting with these folks at your earliest convenience, and allow their expertise in the restaurant business to shine through before selecting the best investor for your launch. You can benefit from both the funds and the expertise.
Once you have identified the hot spots for finding angel investors for restaurants, itâ€™s time to do your homework. Start by making sure that you present yourself in the best possible light, with the best possible plan in place to impress restaurant investors. These folks know the challenges of the restaurant business, so they expect you to have this in mind before approaching them. Complete the following steps first:
- Write a clear, attainable restaurant business plan.
- Create a list of critical funding needs for your restaurant.
- Provide research for your restaurant niche success.
- Back your restaurant launch with your own funding.
If you follow these steps, and participate in the networks and activities mentioned above, then you will attract the right kinds of restaurant angel investors quickly. For more advice on earning the attention of angel investors for your business dream, please be sure to review all the investment and start up resources found here at FindVenture!
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