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SHAKE the Money Tree: Funding for Your Restaurant

Imagine if you will. It is 1:30 a.m. and you have one more errand for the day. You need cash for your restaurant business. A simple $250,000 withdrawal from your ATM card and you should be good to go. The stinking ATM machine declines your request. Apparently, your $170.12 balance won’t cover that size of request.

Now what?

Well, keep your chin up. All is not lost. You have, in fact, achieved a wonderful threshold of the entrepreneurial life. You have just received your first financing turndown. This NO puts you one step closer to hearing your first YES! And that really is wonderful. Forget about the ATM machine. Much like many lenders and investors, they won’t be able to see the same vision you do anyway.

 What’s next?

Well, you gotta learn how to shake the money tree baby.

Let’s start with the basics. There are three financing stages and each will require you to find money.

 1) Seed capital. This is startup funds to finish preparing the business for launch and then actually beginning to operate the joint, or taking a business that didn’t really take off and trying to give it the electric shock treatment.

 2) Growth capital. This is once your restaurant has proven it is a viable concept and ready to grow.

 3) Harvest capital. This is usually brought on by the owner wanting his wealth out of the business, or possibly wanting to exit, or to bring on other investors.

 Keep in mind, there is always money available. And there are plenty of ways to get money for wants and needs, but there are also plenty of money people who really enjoy saying the word, “No.” Get ready. Resilience is the theme for being effective at shaking the money tree.

 There will be plenty of “No” in your future. To which, you can only say, “So,” and then move on.

 In business, you cannot let a turndown deter you. If the plan is solid, the concept is viable, and you are passionate about the project, in time, you will certainly hear that magic word – whether it comes from your local banker, a venture capital firm, or even Aunt Emma.

 The problem for some businesses, though, is they don’t know how to get the capital they need. Those businesses fail.

 How do you get money?

■ Have a Great Restaurant Concept. You must be able to answer, “What sets you apart from the competition?”

■ Provide a Complete and Well-conceived Business Plan. Whether you are a start-up or have been in business for twenty years, a business plan is critical to securing funding of any kind.

■ Choose The Right Site. Great locations can ensure success for nearly any concept.

■ Offer A Funding Plan Schedule. This is a set of strategies for targeting the right amount of money from the right sources, at the right time, for the right price. Be sure to examine all the sources you can. Also, define the points in your plan when you will most likely need an injection of cash. Knowing ahead of time what you will need and when is much better than trying to take all your money at once or worse, going to the money well too many times.

■ Use Common Sense. Figure out how much money you actually need, not what you think you can get.

Falling short later can be more painful than not getting anything now. And greedily overreaching is just, well, bad karma.

■ Have a Strong Management Team. Can your team get it done? Often, a loan will be decided based on the level of experience, professional appearance, attitude, and the personal track record of success of your team, as well as your ability to engender confidence. So you want money for your restaurant? Surround yourself with people who cover any deficiencies you may have, whether it be leadership, accounting, marketing, etc. Once you have assembled your team, ask yourself- “Would I loan money to these guys?” If you have a team you believe in, that will shine through to a smart investor. Knowing WHO to ask and HOW to ask them is critical. You can beg and grovel, but that probably won’t work, so we will need to save that for next time.

Points To Ponder!

Carefully consider what the use of someone else’s money will cost you. What areyou willing to give up in ownership? How much are you willing to pay in interest?

Food for thought

Colonel Sanders, himself, spent seven years traveling the country selling his chicken out of the back of his station wagon before he found someone to fund his secret recipe. He didn’t care who said, “No.” He knew the only right answer was, “Yes!”

About the Author

Howard Cannon, CEO, Restaurant Expert Witness, www.restaurantexpertwitness.com and www.restaurantconsultantsofamerica.com, is the author of several restaurant industry books, including: The Complete Idiot’s Guide to Starting a Restaurant©, volumes I & II, found in bookstores in more than 76 countries around the globe, and the soon-to-be released: We Are a FOR-PROFIT Restaurant. Any Questions?© series of books.  He has written and presented more than 200 industry articles, speeches and seminars and has spoken at industry events, corporate gatherings, high schools and universities across the country. 

A renowned speaker, author, consultant, and advisor, Howard is considered by many to be a foremost authority and expert on Restaurant Start up, turnaround and profit improvement.  He is called on by restaurant companies of all types and sizes, from Fortune 500 firms to independent owner/operators, to implement his strategies to improve day-to-day operational performance and profits within days.  He has worked in every state across the United States and in several countries around the globe and has implemented his strategies and techniques in concepts ranging from quick service to fine dining.

His 23+ years of experience, also makes Mr. Cannon one of the most sought after Restaurant Expert Witnesses in the country. He has provided expert opinions, reports and testimony in cases involving wrongful deaths, slips and falls, FACTA, and franchise infringement – just to name a few. He takes pride in providing the most detailed, well-written, unbiased reports backed up by not only his vast experience in the restaurant industry, but also with the most current information and research available.

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BOMANS HOTEL AND RESTAURANT $264.49 Forty minutes south of Stockholm lies the quaint coastal village of Trosa where pastel coloured wooden houses line the banks of the river and fantastic seafood restaurants cafes and galleries are scattered around the marina. This is also where you will find the eccentric boutique hotel Bomans. All 45 rooms are individually decorated with items the owners have acquired over the years mixed in with modern design pieces from Svenskt Tenn Fritz Hansen Philippe Starck and Ikea for some guests the bedroom will be secondary the Bomans are a family of restaurateurs just as much as they are a family of hoteliers and their ultra local fare stylishly prepared draws it share of dinner guests. More than anything its the atmosphere a sort of luxe pastoral by the sea that keeps them coming back. All hotel rooms have down pillows and down comforters shower and some of them also bathtubs. Nespressomachines with complimentary capsules Ipod docking stations. All rooms are indiviually decorated with different furnitures fabrics etc.Standard RoomOur smallest rooms that accomodate two people. All rooms are individually decorated and have small bathrooms with walk in showers. Nespresso machine with complimentary capsules Ipod docking station. Down pillow and down comforter Egyptian cotton sheets. Some of the rooms are facing the hotels garden and the harbour. Some rooms have queensize beds and some have two single beds. Bathrobe and slippers Complimentary high speed internet. Flat screen TV with satellite channels. Breakfast included. 14 m2/ 150 sq feet. Superior RoomsIndividually designed double rooms most of them with bathtubs. Nespresso machine with complimentary capsules Ipod docking station. Down pillow and down comforter Egyptian cotton sheets bathrobe and slippers Byredo toiletries complimentary high speed internet. Flat sreen TV with satellite channels. Breakfast included. 18 m2/ 190 sq feet. This room can accommodate a total of 2 guests but no more than 2 adults age 18 and over.Deluxe RoomsIndividually designed large de luxe rooms. Most of them with balconies or terraces. They all have bathtubs integrated in the room. Nespresso machine with complimentary capsules Ipod docking station. Down pillows and down comforters Egyptian cotton sheets bathrobe and slippers Byredo toiletries complimentary high speed internet. Flat screen TV with satellite channels. Breakfast included. 30 m2/ 323 sq feet. This room can accommodate a total of 4 guests but no more than 2 adults age 18 and over.SuiteIndividually designed suites one of them with a terrace towards the hotel garden. The other one facing the harbour. Bathtub and walk in shower. Nespresso machine with complimentary capsules Ipod docking station. Down pillows and down comforters Egyptia

The Complete Idiot’s Guide To Starting A Restaurant 2nd Edition $16.99 The recipe for a successful restaurant-now revised In this revised edition aspiring restaurateurs will find everything they need to know to open a successful restaurant including choosing a concept and location creating a business plan finding the cash and much more. New content includes information on tips tip-outs and reporting for the entire staff choosing the best POS system setting up a bar and managing the wine list and making the bottom line look good long-term. -Restaurants are a high-risk venture but starting a bar or restaurant is still one of the most popular new business ventures (Cornell Univ/Mich State) -Overall industry sales are projected to hit $476 billion for 2005 a 4.9% increase -The industry employs a workforce of 12.2 million in more than 900 000 restaurants nationwide (National Restaurant Assn.)The recipe for a successful restaurant-now revised In this revised edition aspiring restaurateurs will find everything they need to know to open a successful restaurant including choosing a concept and location creating a business plan finding the cash and much more. New content includes information on tips tip-outs and reporting for the entire staff choosing the best POS system setting up a bar and managing the wine list and making the bottom line look good long-term. -Restaurants are a high-risk venture but starting a bar or restaurant is still one of the most popular new business ventures (Cornell Univ/Mich State) -Overall industry sales are projected to hit $476 billion for 2005 a 4.9% increase -The industry employs a workforce of 12.2 million in more than 900 000 restaurants nationwide (National Restaurant Assn.)

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Complete Idiot’s Guide To Starting A Restaurant, 2nd Edition $14.59 The recipe for a successful restaurantnow revised In this revised edition, aspiring restaurateurs will find everything they need to know to open a successful restaurant, including choosing a concept and location, creating a business plan, finding the cash, and much more. New content includes information on tips, tip-outs, and reporting for the entire staff, choosing the best POS system, setting up a bar and managing the wine list, and making the bottom line look good long-term. -Restaurants are a high-risk venture, but starting a bar or restaurant is still one of the most popular new business ventures (Cornell Univ/Mich State) -Overall industry sales are projected to hit $476 billion for 2005, a 4.9% increase -The industry employs a workforce of 12.2 million in more than 900,000 restaurants nationwide (National Restaurant Assn.)The recipe for a successful restaurantnow revised In this revised edition, aspiring restaurateurs will find everything they need to know to open a successful restaurant, including choosing a concept and location, creating a business plan, finding the cash, and much more. New content includes information on tips, tip-outs, and reporting for the entire staff, choosing the best POS system, setting up a bar and managing the wine list, and making the bottom line look good long-term. -Restaurants are a high-risk venture, but starting a bar or restaurant is still one of the most popular new business ventures (Cornell Univ/Mich State) -Overall industry sales are projected to hit $476 billion for 2005, a 4.9% increase -The industry employs a workforce of 12.2 million in more than 900,000 restaurants nationwide (National Restaurant Assn.)

How To Write A Restaurant Review

Not only can writing restaurant reviews be an enjoyable experience because you can try all sorts of different foods, it can also be a creative way to express your opinion. There are a number of different rules to follow when writing a quality review. It is important that you understand how to determine the quality of food as well as the restaurant.

The following list highlights a number of tips on how to write a restaurant review:

1. Restaurant Selection: Pick a restaurant that you find interesting and make a reservation. Make sure that it is food that you normally eat and like.

2. Restaurant Features: When you dine at the restaurant, note the décor, atmosphere, wait staff, kitchen staff, parking, cleanliness, other diners, and location.

3. Write Review: Right after dining, find a place to write a review.

4. Describe your Impression of the Style and Décor of the Restaurant: This includes color scheme, decorations, themes, and seating arrangement. Describe the arrangement of the table. Also, you should discuss the exterior of the restaurant. Is it in an accessible location? How was the parking? Was the exterior attractive?

5. Dicuss the Patrons and Staff. What types of people were dining at the restaurant? (Professionals, families, informal diners) Was the staff helpful and nice? Did you have to wait long to receive your food? Did you have to wait long for a server?

6. Discuss the Food: What type of food does the restaurant serve? (Italian, Mexican, Fast Food…etc.) Provide a few of the different foods they offer as well as the cost. Was your food the right temperature? How did the food taste? Was it fully cooked? Was the plate of food appealing to look at? What did you like? Was there anything you did not like? Was the food mushy or have a nice texture? How fresh was the food? Did the food have a nice aroma? Was the review worth the price you paid? The food must have the most words in the review.

7. Organization of the Review: Structure the review chronologically. Write about the moment you entered the restaurant until you paid and left. Write with clear and concise words. Keep topic discussions together and not scattered throughout the review. Use vivid words like amazing, breath taking. Discuss the ingredients. Write using your own personality to make it unique. Don’t make your review a story about your visit to the restaurant. What makes the restaurant so unique? Make sure you provide a recommendation.

8. Writing Mechanics: Describe the restaurant in the present tense. Write in the second person or using a passive tense. Do not make the sentences too short. The review should flow when one is reading it. Avoid pronouns as much as possible.

Writing a review that includes a variety of features about the restaurant will make your review very professional. By implementing a number of writing tips, your review will educate and inform the consumer. Writing a review is an enjoyable way to express your view.

About the Author

Looking for that special
Ottawa restaurant
to crave your hunger? Then be sure to check out the local Canadian directories online to find everything from
restaurants in Edmonton
, Ottawa, Toronto and beyond. Search by city region or by dining category.

Lego Town 3438 McDonald’s Restaurant Review

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