Thursday, November 5, 2015

A Recipe for Raising Finance for a Restaurant

If you are thinking of raising finance to set up a new restaurant, or to further develop a successful one, you will need to ask yourself a few key questions before approaching lenders.  In building a robust business plan (something every financial organisation will want to see) you should check you have the right ingredients, that you understand what will be your recipe for success and how you will prepare to get there.  

Here is our checklist to get you started:

Do you have the key ingredients?

It is essential to know your key selling points that make your restaurant unique.  Beyond that you need to ask yourself do you have:

  • The right product - What are you selling? What is your brand? Have you got the right concept?
  • The right suppliers - Who are they and do you have alternatives as a back up?
  • The right price - Don't have to be the 'cheapest', but is your price right for the level you are pitching your product
  • The right team - One of the fastest ways to ruin your reputation is to give poor customer service.  Have you got the right team in place and have you trained them sufficiently to know they will show your business off to the standard you would hope? And hiring the right chef is at the heart of a great restaurant.  Check they understand your ethos. Do they understand costings and profit margin? 
  • Service that is consistent and successful - Put measures in place to regularly review your business, looking at it with a critical eye will ensure you don't take your eye off the ball.  
  • The right location - You can have the best restaurant in the world, but if it is in the wrong location no one will ever know.  Check out how much competition there is locally, what are the transport links like, what else is going on in that area that could effect your footfall?

Then it’s time to prepare for your Restaurant Business Growth by:

1.     Preparing Your Financial Documents

2.     Preparing Your Business Plan

All of the above ingredients will help to inform parts of your business plan along with a clear marketing strategy.  Before meeting with any lender it is worth meeting with a business adviser to look over your business plan and financial documents to get some feedback.  The more investment ready you are when you approach a lender the more likley you are to get a swift decision.

Whether you are looking for finance to start or grow an existing business, The Women's Organisation are experts in helping businesses to develop a business plan and access finance.  For advice around the best financial options for you and guidance to build a robust business plan contact our team on 0151 706 8111 or

This Global Entrepreneurship Week we are running a special finance advice clinic where businesses who are looking to grow can meet with our finance expert to look at raising finance. Appointments can be booked for Monday 16th November by contacting our team.  More details about this here.  If you need help more urgently though, don't hesitate to get in touch and we will look at how we can accomodate you. 

by Business Growth Adviser Huda Mamoun

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