Originally posted by !Cafe
Thanks for your replies!
My husband has two masters degrees in business management and lots of years of experience both setting up and running restaurants and I've had lots of experience in the front of a restaurant, plus experience as the office manager of an advertising agency, so we're putting our skills/talents together.
Plus I've found a potential grant source.
But thank you all for your detailed and encouraging replies!!!!
As someone who has worked as a small business consultant for the last twenty years and as a business owner for the last fifteen years, I can tell you that there is no free money. If your husband has two masters degrees in business management, he may have missed classes the day they taught that there is no free money.
Typically, grants can be issued to a municipality or county for the purpose of extending a loan to a for-profit business. The formula used to determine the size of the loan includes the number of jobs to be created and the amount of owner's equity. It would be rare that a restaurant would generate enough jobs to meet the requirements, plus governments are reluctant about loaning money to a business that competes with other local businesses.
If you've found a source for a direct grant to your start-up, I would be very suspicious that it's some kind of scam.
Unless you have a sizable investment that you're willing to risk, chances are institutional lenders will not be interested, no matter what your experience is. On top of that, they will expect personal guaranties backed up by collateral.
First, put your business plan together making sure your financials are reasonable and explainable, and take it to your bank for their review. Once they tear it apart, take it to the SBDC.
When you finally have a business plan that shows a promising business model, find friends and relatives who have faith that you can make it work. Then maybe, you can get started.