How to Get Funding For a Restaurant

There are a few ways to get funding for a restaurant. You can start by creating a restaurant funding startup account and raise the money, source the funds from trusted family and friends or through a loan and even find an investor. No matter which you choose, there are pros and cons to each. Learn more about your restaurant funding options with this helpful guide to make the right decision for your restaurant startup.

How to Raise Money for Your Restaurant

The most common of the restaurant funding options is raising the money. In order to do this for your business, you’ll need to follow the steps below.

• Step 1. Identify your goals – The very first step is to determine what your financial goals are for your restaurant. Figure out how much money you’ll need to get started and what you’ll put it towards once you raise it.


• Step 2. Create a pitch – Once you have an idea on your goals and needs, create a pitch deck. This is simply a slideshow presentation that will explain why you need the money, what it will cover and why this is a smart investment for others to make.


• Step 3. Have a messaging plan or template – In addition to the pitch deck, it’s important to have other messages ready for your fundraising efforts including an email template, social media posts and crowdfunding page messages.


• Step 4. Identify sources for fundraising – Who will you be reaching out to? Who are some sources that will help you with restaurant funding startup costs and possibly more?


• Step 5. Launch your campaign – Get in touch with potential investors, set up landing pages on your crowdfunding page and be sure to obtain any loan comparisons needed.


• Step 6. Keep on top of your plans – Be persistent with loans you’ve applied for, friends and family that want to help out and the crowdfunding page you run (if applicable). Make sure you’re consistently reaching out and keeping contact with potential investors.

Pros of Raising the Money

Choosing this restaurant funding option means opening yourself up to new alliances and business opportunities, gives you access to cash you need to get things started and even provides you with extra funds to hold onto for future business needs.

Cons of Raising the Money

Some potential cons include high interest rates on loans that can be difficult to pay back, the possibility of losing creative control when taking money from investors and the fact you’ll be taking on debt for your restaurant until things pick up.

Avenues for Raising the Funds

Take a closer look into the different avenues you can use to get funding when starting a restaurant. There are many options from loans to investors. Which is right for you?

• Trusted friends and family – Ask your loved ones to donate or loan you money for your startup. They’ll usually be willing to loan money without the high interest rates of a traditional lender. Just be careful doing this because sometimes mixing business with family can cause tension.


• Small business loan – One of the most popular restaurant fundraising options is getting a small business loan to cover costs. Keep in mind that there will be interest to pay back as well as the amount of the loan.


• Investors – Do your research on various investors. You can find an angel investor, venture capital firms and more that can help you find the restaurant funding options that are right for you.


• Business partner – Bringing on a business partner, or multiple partners, can be helpful when splitting the costs of the restaurant. However, keep in mind that you’ll also be splitting the profit.


• inKind Capital – This is an alternative financing option that provides you with upfront capital in exchange for food and beverage credit. There’s no loan to pay back and no interest. Learn more on the inKind Capital website.


• Crowdfunding – Choose a site such as GoFundMe or Kickstarter to help you raise several thousands of dollars to help out with costs.