There are a lot of different ways to get some cash to start up your restaurant business. One of those ways is to get help with an investor. An investor can bring a lot to the table aside from cash, like connections to supplies, a certain level of expertise, or maybe name recognition. But it’s incredibly important to make sure you have your roles immediately decided and be careful with whom you choose to work.
Sometimes, your investor might be just a silent partner. If that’s the case, make sure that the role is clearly defined. There’s nothing wrong with having someone who merely invests their capital into the business. However, if they suddenly decide to be a not-silent partner, you may have to confront that obstacle as soon as possible.
Also, be very weary about getting investors who are friends or family members. There’s an old rule in the restaurant business (well, any business) to not work with family. Family members can often find it much harder to criticize each other, so it could be harder to get the truth out about a business if it needs to be said. If you’re aiming to get any kind of support from family or friends, it’s best to make it more moral support, especially if you’re running a start-up.
No matter who you choose to let invest in your business, make sure you find the best way to compensate them. You should start off by discussing the plan before actually taking any money so that way you can find a realistic goal of compensation, be it on a monthly basis or whatever. Having a clear cut plan from the beginning (and making sure it’s in writing) will allow you to avoid any sort of headaches and confusion further down the line.
One Fat Frog • 2416 Sand Lake rd, Orlando FL, 32809 • 4074803409