No announcement yet.

Investing in Restaurants - How to Spot a Good Deal

  • Filter
  • Time
  • Show
Clear All
new posts

  • Investing in Restaurants - How to Spot a Good Deal

    You know that investing in restaurants can be a risky venture, but it can also be quite a profitable one. The trick is to pinpoint the best investment opportunities and put your money there. These kinds of investments almost always take place during the start-up phases of a restaurant when it difficult to predict whether it will succeed or not. Private placements are usually the means by which these informal investments are accomplished. If you are serious about this category of investing, you should be prepared to put down at least $2,000, though most investors supply much more than this amount to a start-up restaurant.

    It is the common opinion of bankers and venture capitalists that 90% of people starting up restaurants will not succeed in finding any significant amount of financing from their bank. Likewise, many venture capitalists are only interested in investing in restaurants that are already established franchises. That is why so many start-up restaurants rely on family members and friends for the funding they need to get started. Whether you are a venture capitalist acting differently than the norm, or you have a friend or family member asking for funding, here is what you need to look for before you put a penny into the deal.

    First, see if you can get other investors behind you before investing in restaurants. Incentives you might offer to convince them include tax write-offs from the government, meal discounts, and a structured investment package. An example of this succeeding was with a man who had a dream of owning a restaurant and bringing financial discipline to an industry that could really use some. He was backed by 120 investors who helped him purchase or start up the six entities he owns today. Investments were limited to a reasonable $16,000 a piece, but with so many people backing him up, he had plenty of funding needed to succeed.

    Second, whether you can get investors to back you up or not, the only way to predictably tell if it is worth investing in restaurants is to take a look at the owner's business model. This should be sustainable, meaning that it can replicated and improved as needed based on the industry. The best advice you can utilize about investing in the restaurant industry is to not let the glitz of the food industry or your loyalty to your friend cloud your judgment.

    Article Source:
    Platinum Swing Trade Stock Signal Alerts(FREE 14-Day Trial)

    The 10-Buck Broker (Long-Term Stock Signals)

    Best Stock Picking Services

    Sign up for the forum to reply to this post!!!

    Best FOREX Signals Software

    Stock Market Investing For Beginners

    "Step into the arena and hold on to your hat. Don't get discouraged if you don't make 8 trillion dollars in your first month. Trading is not a get rich quick scheme. Realize that trading is a skill and just like any other skill it takes time to learn. Have convictions in your decisions in life and trading. Ignore the comments and "advice" of those that have never traded a day in their life."

    College is here to read more about the college scam!

    Good KARMA and positive energy abound.

    Terms Of Service

    Disclaimer: This website provides information about the stock market and other investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for informational purposes only. The Author of this website is not a registered investment advisor and does not offer investment advice. You, the reader, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.

    Promoted content: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this website and may receive commissions from purchases you make on subsequent websites. Always exercise due diligence before purchasing any product or service. This website contains advertisements.
    Best stocks to buy now Stock Market
    Best stocks to buy now
    Dow Jones TodayDJIA