You watch Atlanta Eats with Steak. You listen to Mara on the Atlanta Eats Radio every Saturday. You are consumed with Top Chef, Chopped, and seeing every possible Iron Chef throwdown you can DVR. Now, you’ve got the bug to start your very own business. With the proliferation of the modern day food truck hitting the scene, how would you secure funding to start up your very own food business? Having worked with business owners over the past twenty years (and starting four companies myself), you should know in advance that starting a business is going to be really tough work. (you can check out my entrepreneur series on www.yoursmartmoneymoves.com). So, what may be the best modern day ideas to get funding for your budding business.
WWW.FOODSTART.COM- Foodstart is a crowdfunding business that was specifically built for the restaurant industry. You can post up your new food truck or coffee shop idea and ask for donations to start your business. You can reward your loyal followers with behind the scenes tours, first priority in line, discounts, and much more.
CROWDFUNDING- If Foodstart doesn’t work for you there are dozens of new websites that promote the idea of crowdfunding. Websites such as www.kickstarter.com, www.rockethub.com, and www.godfundme.com are just a few that involved getting investors to donate money in return for some perks when your business gets up and running.
PEER TO PEER LENDING- Not all peer to peer lending sites will allow for start up of a business to be a reason to ask for funding. However, you can investigate websites such as www.lendingclub.com, www.prosper.com , and www.zopa.com to look for lending in the $5,000 to $25,000 range. This may not be enough to fund a restaurant, but it could certainly make a down payment on your food truck business.
WWW.SBA.GOV- Unlike Healthcare.gov, this website actually works and really does help business owners. Go to the section on loans and review the general small business loan also known better as a 7(a) loan. They also have an area called microloans for those who need a lower amount of initial capital.
SELF FUNDING- Whether you use credit cards, friends and family, or your personal savings, self-funding your new business is certainly an option. Nobody plans to fail when they start a business, however the majority of new restaurant ventures crash and burn. Consider any capital you invest flight risk.
You should listen to the replay of the November 16th Atlanta Eats radio interview with Mara Davis and me from this past Saturday. Right after our interview, Mary Moore who is the founder and owner of Cook’s Warehouse shared how she got her business off the ground and discussed additional ideas on what it takes to be a successful business owner.
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder oXYGen Financial, Inc.
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Ted Jenkin, CFP® is co-CEO of oXYGen Financial and is a top ranked personal finance blogger (www.yoursmartmoneymoves.com). He is a regular contributor to Investment News, The Wall Street Journal, and The Atlanta Journal Constitution.
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