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Starting and Running a Restaurant by Elizabeth Keyser, Jody Pennette

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CHAPTER8

Finding Your Cash

In This Chapter

  • Why banks rarely finance restaurants
  • Where to find your funding
  • Does crowdfunding work?
  • How to negotiate an agreement with investors
  • Tips on managing your investors
  • How to avoid financing traps

There are many ways to fund a restaurant, except the most traditional way—walking into your local bank and asking for a loan. In this chapter, we’ll show you how to seek what’s called private equity funding, investments from your business, social, and family networks.

We’ll also show you the private equity funding formula, the rate at which your investors expect to be paid back, and give you tips on managing ...

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