So many professional chefs dream of opening their own restaurants, and many more probably would if financing a restaurant were not such an issue. Knowing how to find, approach, and follow up with prospective restaurant investors gives you a distinct advantage over many would-be industry rivals. A professional, can-do attitude and a well-written restaurant business plan will serve you well in this endeavor.

Find Investors and Write a Restaurant Business Plan

In order to approach investors, you need to be able to find them in the first place. Join entrepreneur and other business associations to make connections with potential investors. Even if no suitable investors turn out to belong to the group, other members can point you in the right direction. You may want to avoid competition by posing your inquiries to businesspeople in relevant fields who are not necessarily chefs. Hotel owners, for instance, are likely to know investors who might be interested in restaurant investment. Friends, relatives, co-workers, and customers who can vouch for you make valuable references and may be in a position to contribute an investment. Your dedication, talent, and work ethic will be less of a question in their eyes than a stranger’s if you have done your job correctly thus far. Once you find one or more investors with whom to meet, write a business plan. Make it as detailed as possible so that you know exactly what you need and what you can offer your investors before you meet with them. Pay special attention to how much you will need to spend on professional kitchen equipment and a lease or down payment for a space. If you can, hire a professional to help you write the business plan and to aid you in your presentation. Impressive results should mean that the money you spend on this service comes back to you many times over.

Meeting with Restaurant Investors

During the meeting itself, you need to project an image of total professionalism. Ensure that you are well-dressed, well-groomed, and self-assured. Emphasize your strong points, especially any prior experience or particularly impressive training – such as a business degree or prestigious culinary arts degree – that you may have. Confidently express the concepts outlined in your business plan and have an attractively-bound copy available for each investor. Be open to questions and have some ready yourself. Treat the meeting as an opportunity for you and your potential investors to get to know one another on a professional level and determine whether your combined interests and experiences mesh well together. While a prospective investor does not have to know how to use the commercial double boiler, a general interest in the food service industry is important.

After the meeting, thank each investor warmly. Enact one friendly follow-up within the first two weeks after the meeting. Thank investors for their time and perhaps mention one last selling point. Keep a relaxed but respectful attitude. Continue your networking efforts even if you procure an investment. Since the restaurant industry is so expensive and competitive, having extra or back-up financing always helps. Most of all, be politely persistent. It will pay off in the end.

Filed under: General • Resource Central • How-To

Tags: financing a restaurant, kitchen equipment, restaurant business plan, restaurant investors