I've had an idea kicking around in my head for a long time about a restaurant idea that I think would fit well into Detroit given its mix of old and new - but being an hourly employee doesn't exactly give me the opportunity to pursue startup capital for a business, nor does it help me find out how to even begin.
Anyone have any ideas? I'd love to open the place somewhere near Eastern Market or WSU, but I have no idea where to even begin - considering that I'm not a business major.
~~ Matt B
If you are an hourly restaurant employee, your next step must be to work your way up into restaurant operations management so you can develop the necessary skills you will need and establish a name for yourself in the industry. No one is going to loan you anything just on the basis of an idea, you will need to have a proven track record of success in managing someone else's restaurants and have developed a sound, experience-based business plan to go along with that idea.Quote:
Originally Posted by tatortrumpet
Very good advice from Mikeg. However, where theres a will theres a way. An idea is something, execution of that idea is everything. You have to start, so go ahead and start. Do up a business plan. Maybe look into using the kitchen at Eastern Market to test your idea on weekends. Or, try finding a place to let you do a pop up restaurant, these are becoming very popular and is a good way to test your idea. There is capital available in the form of grants and angel investors. Having a bit of a track record will help. So get going and good luck.
here are definetly people willing to help but some experience or getting someone with experience on board with you would be a plus. Downriviera has some good ideas there. And if push comes to shove kickstarter seems the way to go lately.
You will hear of the mountain of failures which occurred before you. Don't ignore them, but also, don't be intimidated by them. Learn from 'em, if you can.
I'm not sure if Wayne is still putting on their business extension classes...originally done by Ed King...but I'd recommend at least asking them. I'll see if I have any contact information. I DO at least have the materials from the class, which were quite excellent. The series used to be How to Start a Successful Small Business, and the follow-up was How to RUN...and while appearing the standard 'quarterback' and prom-king handsome white dude, Mr. King was filled with actual life experience of running various businesses...and had been advising folk for many years. I do not mean to sound derogatory, don't misunderstand...it is just some might think he was a slickster huckster, because his veneer was so perfect!
Good luck...
If you're serious, you should put together a detailed business plan that would include everything from what your start up costs would be to a market analysis. Detail is everything when you're talking to potential funders that don't include mom and dad. SCORE http://www.score.org/ should be able to help you with financial planning and business plan templates, information on small business operation and guidence.
The SBA also will be a great help to you when it comes to planning your startup.
Tatortrumpet, I would suggest that you give Liz Blondy a call at her doggy day care, Canine to Five. Several years ago she organized a group that met monthly to support and mentor young Detroiters as they work through the process of opening a business in Detroit.
I'm not in the restaurant business - I'm in the transportation business [[that's what pays the bills). However, I do have managerial experience in the musical organizations that I oversee - a community band, and a big band.Quote:
Originally Posted by Mikeg
So, it's not the most perfect of connections, but it's better than nothing at all.
Although, I suppose, to some, it may as well -be- nothing.
There's always a way if you truly believe you can be successful in your idea. Here's a thought. If you don't have a lot of restaurant management experience, get in touch with a successful major restaurant franchise like a Burger King, Taco Bell or Denny's. Tell them you're interested in opening up one of their franchises. Ask them a lot of questions about how to run a successful franchise. Ask them to send you their business plan so you can convince some local lenders to lend you some of the capital. Ask them for some tips on how you can be successful in the loan interview. Then, when they send you their business plan, modify that business plan for your own restaurant business. Use those tips they gave you to apply for a startup loan.Quote:
Originally Posted by tatortrumpet
You could also cross promote. You could use your transportation experience [[if you don't have restaurant experience) to apply for a startup loan to open up a company that "transports" restaurant supplies and equipment. Then, rent a storefront out where you can show some of the restaurant supplies and equipment you distribute plus you have a working restaurant to demo all the equipment you sell.
Lenders need to have confidence in your skills and experience to the extent that they are not going to think you're going to blow their money. If they think you don't know what you are doing in running a restaurant, they won't lend you a cent because they don't want to loose money. It's all about the right presentation. I've met people who've gone through bankruptcy and right after the discharge, they got a $20K line of credit from the bank to open a clothing store because their presentation was so professional and convincing. You just have to be able to convince a loan officer that you know what you are doing and they are not going to loose their money and job because they made bad loan decisions.
The first thing to remember is that banks and most other lenders don't like restaurants in their portfolio. Add in an inexperienced owner/manger and you are talking about a really high rate of failure. My advice is that you consider low-cost alternatives to a full-scale restaurant [[ie food carts/trucks).
The good news is that the money in the bank belongs to your friends and family so you can start fundraising there. I would recommend partnering with someone who has the hands-on experience in the kitchen or in managing the front of the house. If you can build the right team and bring some capital/collateral, there are a few loan funds that MIGHT be interested but you've got to have your idea/profitability down cold and having a friend/relative who can help you get a liquor license wouldn't hurt.
Also think about calling the Small Business Administration or their outreach/counseling arms the MI-SBTDC and SCORE.
Quote:
Originally Posted by tatortrumpet