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Whаt аrе tyрiсаl quеstiоns I will bе аskеd whеn I рrеsеnt my rеstаurаnt to investors?

Discussion in 'Financing Your Business' started by Jack Benoit, Mar 9, 2016.

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  1. Jack Benoit

    Jack Benoit Member

    Whаt аrе sоmе tyрiсаl quеstiоns I will bе аskеd whеn I рrеsеnt my rеstаurаnt businеss рlаn tо роtеntiаl invеstоrs?.
  2. remnant

    remnant Member

  3. remnant

    remnant Member

    They will be interested to know about the location of the restaurant business and why you selected it. What is your target market? Have you assessed the competition and how do you plan to surmount it? What is your unique selling proposal? What are your strengths and competencies related to your business? What is your plan for the logistical aspects of the business like hiring, transportation and marketing? What is your future growth and expansion plan?
  4. Pop

    Pop Member

    Not to mention why on earth you think you have the skills, experience and qualifications to succeed in the restaurant industry.

    But actually before they meet you they should have already had access to your business plan and be ready to talk details. Restaurants are super high risk, investors do not skip the details.
  5. Corazon

    Corazon Member

    If I were the investor for a restaurant, hmm, maybe my first question is the type of restaurant, what are the specialties. Second is the market research, what is the estimated general client base. Third is the location and required capitalization. Investors are often conscious of the ROI (return on investment) so you have to be prepared for that question. And to be convincing, a chart with numbers could make or break the decision of the potential investor.

    You also have to show your confidence in presenting your proposal.
  6. Valerie

    Valerie Member

    "Do you have a liquor license?" Joking. Maybe.

    In all seriousness, though, the investors are going to want to know how many people you plan on hiring initially, what your start up costs are going to be, what ingredients you're going to need, and how you plan to offset the utilities and pay of your employees (if you have any) if business doesn't go as well as you hoped for the first few months. Another topic will probably be your marketing campaign. How will you attract a profit? You have to be able to make it clear that you're aware of the risks and that you have multiple 'what-if' scenarios.
  7. pwarbi

    pwarbi Member

    With a restaurant business, I think most of the questions asked will be based around your experience and the experience of your staff (have you got a decent chef, that kind of thing) and about your market research.

    Why have you decided to open that kind of restaurant in that area, why have you chosen to sell that cuisine of food, what other competitors in the area have you got, and how long do you think it will take for you to be able to turn over a profit.

    Not many new businesses make a profit from day one, investors know that but the least they'll want is some kind of timescale, and just to make sure your not going to run out of money, spend all their investment and still be nowhere near to making anything.
  8. Nikita

    Nikita Member

    If it were me I'd like to know everything about what makes this particular restaurant unique and more profitable than any other. If there is a particular tactic involved such as using only cheap ingredients but being able to churn out high quality looking products then that would be something I'd be very interested in, but if the only twist is that it's just like any other restaurant with a different menu I'd be worried.
  9. rz3300

    rz3300 Member

    Well they will want to know what makes you work. That means what make you money. What items will you make the most on, the least on, ratios of cost to make versus costs brought in...all that sorts of stuff. It is information that you should already know though, so hopefully there are really no issues there. Just make sure the food is good if they want to taste it.
  10. Vinaya.Ghimire

    Vinaya.Ghimire Member

    I was once a restaurant owner. It was a joint venture and later when the two partners left, I was the sole owner. Since I could not run the restaurant myself, I tried to attract investors. The basic questions I had to answer were:
    Where is the restaurant located?
    What kind of foods were available in the restaurant?
    How many regular customers the restaurant has
    What is the daily volume?
  11. ReadmeByAmy

    ReadmeByAmy Member

    If you are an owner of a restaurant business and you want to attract investors who will join you in order to expand your business make it sure that you will also show to them an attractive business plan. Give them an interesting business proposal. Prove to them that you had a potential business and that you are competent already in this kind of business. You have to state clearly the total amount of investment that you already had and the amount of investment that you still need in the business. And your revenue projections is also important so that they can analyze well if they will be convince to invest in your business.
  12. well, your skills would be the primary asset and where you have worked before. The location would really matter and of course, the budget.
  13. Jessica Danes

    Jessica Danes MVP Member

    @Jack Benoit when I was researching for my old bakery, I remember coming across this article from Entrepreneur.com even before I knew whether or not I needed to find investors. It really helped me put a plan together for what I would say and how I would sell myself and my dream, not just my business. I also had to think over what I would be able to promise without making it sound like a fantasy. I hope this helps!
    djbaxter likes this.
  14. Initial question was the location supported by the amount of money to be invested, the ROI, the specialties and the skills of the workers.

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