Investment sought!

[Aisha85]

Hello all, does anyone have any advice plz....I am needing the start up money to open a small cafe. I am currently trying to set up a home cooking business as I am passionate cook. Am desperate to have a premises though and know I could run a great little cafe. Am extremely committed and ambitious but am stuck without the initial funding. Any help would be much appreciated! Thanks, Aisha

 

[fisicx]

How much have you saved so far?

How much is the bank willing to lend you?

How much can you borrow off family and friends?

How much do you need?

 

[Mark T Jones]

Set up your home business, get a feel for business and put money aside towards a cafe business.

Also, get to know some aged cafe owners, work for them with a view to buying in over time.

My business is all about lending to hospitality- including start up cafes - my advice at this point would be to steer clear of investment or debt, build a decent cash stake and - far more important- an insight to the real business of running a cafe

 

[Aisha85]

Hi,

Thanks for your message. I don't have any savings nor friends or family who can help. Not seeking partner just for the money but also business acumen, contacts, experience etc hence this route sought not bank loan. Thanks

 

[Aisha85]

Set up your home business, get a feel for business and put money aside towards a cafe business.

Also, get to know some aged cafe owners, work for them with a view to buying in over time.

My business is all about lending to hospitality- including start up cafes - my advice at this point would be to steer clear of investment or debt, build a decent cash stake and - far more important- an insight to the real business of running a cafe

Thank you for your advice.

 

[BusterBloodvessel]

Sorry to be blunt, however;

You're asking a lot of an investor. You want their money, their business acumen, their contacts, and their experience. What do you bring to the table? The fact that you can cook. So can plenty of other people, so why wouldn't they just set up a cafe on their own and employ someone to cook/run it daily? Why do they need you as a business partner?

Cafes are notoriously difficult for being anything more than a lifestyle business for the owner/operator, with very little left over by way of actual profit to be shared between investors. Anyone giving you what you are asking for is likely to face a long hard slog to get their money back.

I would echo Marks advice, start from home, learn what works, what doesn't, start to form plans from the back of that and get some experience both at home and potentially also working in existing cafes.

 

[fisicx]

Thanks for your message. I don't have any savings nor friends or family who can help. Not seeking partner just for the money but also business acumen, contacts, experience etc hence this route sought not bank loan. Thanks

Nope. Not going to ever happen. Getting a job as a chef/cook in a cafe/restaurant will let you live your passion without any of the many risks involved in running your own cafe.

 

[NickZ]

I am needing the start up money to open a small cafe.

If you don't mind: what is your experience in gastronomy?

 

[Aisha85]

Sorry to be blunt, however;

You're asking a lot of an investor. You want their money, their business acumen, their contacts, and their experience. What do you bring to the table? The fact that you can cook. So can plenty of other people, so why wouldn't they just set up a cafe on their own and employ someone to cook/run it daily? Why do they need you as a business partner?

Cafes are notoriously difficult for being anything more than a lifestyle business for the owner/operator, with very little left over by way of actual profit to be shared between investors. Anyone giving you what you are asking for is likely to face a long hard slog to get their money back.

I would echo Marks advice, start from home, learn what works, what doesn't, start to form plans from the back of that and get some experience both at home and potentially also working in existing cafes.

You're right. I'm a nobody with no talent. Your spot on. Thanks for the reality check

 

[Porky]

@Aisha85

Look, nobody wants to stifle ambition, I’m sure you have a lot of talent and much to give!

I think its wonderful that you have the drive and desire to want to run your own café and that’s to be commended it really is but, I can tell from your reply you are still fairly young with what looks like much to learn and I don’t mean to say that in any kind of patronising way, its imperative that you gain the skill sets and base knowledge first before your start your café venture, it will position you stronger so that when you do start up your café, you can avoid some of the basic mistakes and pitfalls others suffer and make it the roaring success that your deserve.

The advice @Mark T Jones has given you is absolutely spot on; in your thread you give us no indication if you have even worked in a café let alone experience of running one. This is the first step really, get those base skills behind you, work in a small café, learn how they operate, deal with customers, order stock, understand what works as posters here have already pointed out, learn the accounting and record keeping side, etc, etc. put simply: learn the café business inside out from working within one before you embark on your first venture. This will pay you back ten-fold in knowledge in the years to come. There is more to running a successful café business than just being enthusiastic about cooking within a home cooking business. It is a totally different concept you are looking at.

The harsh reality is that nobody is going to hand you a chunk of change to buy a café. In fact, it will be challenging for you to secure a start up loan without being able to demonstrate you have the business acumen and established skills to make it work. A solid business plan and some capital of your own to put in before you could even secure loans.

I appreciate this isn’t what you want to hear at the moment but it’s how it is. Get those skills first and some base money behind you and I’m sure before long, you will be truly ready to make a successful go at it. I really wish you well, but this truly is the right way forward, don’t get despondent, as I say, I’m sure you have much to give here, it will come in time.

You take care now.

 

[Aisha85]

@Aisha85

Look, nobody wants to stifle ambition, I’m sure you have a lot of talent and much to give!

I think its wonderful that you have the drive and desire to want to run your own café and that’s to be commended it really is but, I can tell from your reply you are still fairly young with what looks like much to learn and I don’t mean to say that in any kind of patronising way, its imperative that you gain the skill sets and base knowledge first before your start your café venture, it will position you stronger so that when you do start up your café, you can avoid some of the basic mistakes and pitfalls others suffer and make it the roaring success that your deserve.

The advice @Mark T Jones has given you is absolutely spot on; in your thread you give us no indication if you have even worked in a café let alone experience of running one. This is the first step really, get those base skills behind you, work in a small café, learn how they operate, deal with customers, order stock, understand what works as posters here have already pointed out, learn the accounting and record keeping side, etc, etc. put simply: learn the café business inside out from working within one before you embark on your first venture. This will pay you back ten-fold in knowledge in the years to come. There is more to running a successful café business than just being enthusiastic about cooking within a home cooking business. It is a totally different concept you are looking at.

The harsh reality is that nobody is going to hand you a chunk of change to buy a café. In fact, it will be challenging for you to secure a start up loan without being able to demonstrate you have the business acumen and established skills to make it work. A solid business plan and some capital of your own to put in before you could even secure loans.

I appreciate this isn’t what you want to hear at the moment but it’s how it is. Get those skills first and some base money behind you and I’m sure before long, you will be truly ready to make a successful go at it. I really wish you well, but this truly is the right way forward, don’t get despondent, as I say, I’m sure you have much to give here, it will come in time.

You take care now.

Very much appreciate your lengthy reply. Thank you for wording things in a helpful manner. Have noted your comments a s will take it on board. Thanks again. Most grateful.

 

[BusterBloodvessel]

You're right. I'm a nobody with no talent. Your spot on. Thanks for the reality check

I didn't say that. I said you don't have much to offer to a business partner. That doesn't mean you don't have anything to offer full stop. But a partner is going to want to know what you bring to the party as well and/or how quickly they can get a return on their investment. Not just setting you up in business for the hell of it.

As mentioned, if you did want that then some generous friends and family that do want to set you up in business on a "pay us back when you can" basis would be great but you've said that's not possible.

Please take some of the advice above and get some experience working from home and/or working in a cafe environment. There is a rose tinted view that it's all about leisurely cooking each day whilst greeting your regular customers, having a natter, closing up at 2pm and going home etc and believe me, that's far from the truth!!

Best of luck.

 

[BubbaWY]

A few years ago me and my ex wife bought a cafe (with two friends) - I wish I had been on this forum at that time as I doubt we would have gone ahead with it had I known what I have learnt from here.

A cafe is unlikely to be an investment for anyone (not directly involved). You might make yourself a living and maybe some profit but its questionable whether there will be enough to provide a return to an investor. Even if it was an existing cafe and the books showed there would be a return, the risk would probably be too great.

 

[Aisha85]

A few years ago me and my ex wife bought a cafe (with two friends) - I wish I had been on this forum at that time as I doubt we would have gone ahead with it had I known what I have learnt from here.

A cafe is unlikely to be an investment for anyone (not directly involved). You might make yourself a living and maybe some profit but its questionable whether there will be enough to provide a return to an investor. Even if it was an existing cafe and the books showed there would be a return, the risk would probably be too great.

Thanks for the info.

 

[Mark T Jones]

What you absolutely must understand @Aisha85 is that this is a business forum, and good business advice frequently comes without a sugar coating. Conversely, the 'sweetest' advice is frequently either vacuous or deliberately deceptive. (I'd specifically exclude the great feedback from @Porky )

Multiply that by 10 if you go looking for investment. It's a snake pit & I can guarantee that anyone sweet-talking you isn't your friend.

Back to hospitality - with a couple of decades under my belt.

The failure rate in hospitality is consistently higher than any other sector. Any idea why?

It is currently rising stratospherically - what has changed in the last 2 years to make that change? If you don't know the answer to that, you really need to, because it's fundamental to your business.

On the first one, the reason the failure rate is always above average - the one the media will never tell you about - is that the people going into it don't understand business. They are awash with ideas, passion, dedication and often cooking ability - but those are traits of a good employee, not a good business owner.

Start to get your head around

stock control
wastage
recruitment/retention
systems & processes
VAT


But above all, marketing - and I don't mean building a Facebook page.

 

[Aisha85]

What you absolutely must understand @Aisha85 is that this is a business forum, and good business advice frequently comes without a sugar coating. Conversely, the 'sweetest' advice is frequently either vacuous or deliberately deceptive. (I'd specifically exclude the great feedback from @Porky )

Multiply that by 10 if you go looking for investment. It's a snake pit & I can guarantee that anyone sweet-talking you isn't your friend.

Back to hospitality - with a couple of decades under my belt.

The failure rate in hospitality is consistently higher than any other sector. Any idea why?

It is currently rising stratospherically - what has changed in the last 2 years to make that change? If you don't know the answer to that, you really need to, because it's fundamental to your business.

On the first one, the reason the failure rate is always above average - the one the media will never tell you about - is that the people going into it don't understand business. They are awash with ideas, passion, dedication and often cooking ability - but those are traits of a good employee, not a good business owner.

Start to get your head around

stock control
wastage
recruitment/retention
systems & processes
VAT


But above all, marketing - and I don't mean building a Facebook page

Hi there, thanks so much. Am learning a hell of a lot already so thanks to yourself and the other posters. Very much noted and appreciated.

Thanks

 

[Aisha85]

I didn't say that. I said you don't have much to offer to a business partner. That doesn't mean you don't have anything to offer full stop. But a partner is going to want to know what you bring to the party as well and/or how quickly they can get a return on their investment. Not just setting you up in business for the hell of it.

As mentioned, if you did want that then some generous friends and family that do want to set you up in business on a "pay us back when you can" basis would be great but you've said that's not possible.

Please take some of the advice above and get some experience working from home and/or working in a cafe environment. There is a rose tinted view that it's all about leisurely cooking each day whilst greeting your regular customers, having a natter, closing up at 2pm and going home etc and believe me, that's far from the truth!!

Best of luck.

Thank you very much