| Topic Name: |
venture capital |
| Message Name: |
Advice |
| Date Posted: |
09/06/2007 |
| In Reply To: |
My husband and I operate a catering business and participate in local festivals and events. We have learned a great deal about the local Cajun Market during the last 5 years and are ready to open a restaurant. We have over 30 years of restaurant experience. Both of us started at McDonald's as crew members and worked our way up to Supervisors and Store Managers. Now we are ready to put our talents and experience to work in our own venture, and serve the growing demand foe Cajun Cuisine in our area. Interested investors may see our listing on prosper.com #195798
Please help us to realize our dream!
Thank you!
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| Message: |
Please do not read this as disparaging remark, but you are going about this all wrong.
First, no real venture capitalist will have any interest in a restuarant (a restuarant chain, maybe). There is simply too much risk and not enough reward for a single, start-up restuarant.
Also, if you get the funding through Prosper, you will fail. No restaurant will generate enough cash flow to pay off its debt within 36 months (the payment terms for Prosper).
You need to find the Small Business Development Center in your area (they are normally associated with universities). Set up a meeting with them to help you develop a business plan and complete the paperwork for an SBA guaranteed loan. This will allow you to "shop" your loan to various banks.
Be prepared - the banks will want you to put as much equity as possible into the venture. Also, they will want a mortgage on your personal residence and any other assets of value that you own. However, this is only fair. Afterall, the bank stands to gain nothing outside of the interest charged on the loan. However, the bank can loose the entire amount loaned to you.
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