Your Questions About Investing In Restaurants Can Work

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Chris asks…

Do business majors really know how to run a business?

I used to be a manager of a restaurant. I worked with a kid that was also in college and was a business major. Our main manager never really did anything, so we practically ran the place.

I never developed a formula, but I’m sure math would’ve perfectly explained the tendencies of our customers and daily sales. Advertising does work. However, it’s only good in spurts. Oversaturating your advertising hurts you more than it helps. People get “immune” to it. Furthermore, there will always be a core of people that will come to your place in any given location. Often times, I found advertising wasn’t worth it. Coupons attracted customers who would only come for the deal and never come back. It’s worth more to invest in a worthwhile location where people can see that you EXIST, than to spend money on ads.

Business majors who think companies need to spend hundreds of millions on advertising are total morons. GM and Chrysler over advertise, as do Coke, Pepsi, McDonald’s and several other corporations. It’s a bragging thing. The fact is, these companies are POORLY RUN and MANAGED. They are just corporate bullies, who are always looking over their shoulder.

The Japanese knew they didn’t have to advertise during the Super Bowl to win over consumers. They let their reputation speak for itself.

You wonder why people think Americans are dumb?

financi4 answers:

There’s no substitute for experience. It is a great teacher!

Thomas asks…

Where can I find angel investors to loan or invest $25K in a bar & restaurant in Sacramento County?

Our group of investors need to raise $25-35,000 of working capital to reopen a historic bar/restaurant. We have already invested more than $65,000 and have been assured 7 day and 30 day credit with food and liquor vendors. We also have cash and credit of $15K. What types of institutions/investors offer lines of credit, short-term loans and/or equity investment? How do we locate these opportunities?

financi4 answers:

Please do not apply to any of the lenders which respond to this mail as they are all scammers. It is a bunch of people in nigeria they ask you for money then no loan be warned i fell for it myself recently best wishes

Donald asks…

who can i contact to invest with?

hi im going to turn 18 and i really want to invest my money in something, or find people who would like to open up a bar or a restarunt. I would work at restaurant my self as a waiter but i live in mexic and going to queretaro next year to go study college. I wanna find someone to help me open a business or at least give some orientation on what to do or if you know any one in queretaro please let me have there email send me an email please at thanks

financi4 answers:

It depends how much money you have to invest. Wholesale narcotics distribution is a lucrative yet risky area, although it will be far less work than a restaurant.

On a more serious note, do not go into the restaurant business to make money, especially if you’ve never done it before, and not at 18. At your age, and depending on how much you have to invest, I would get into direct property. Buy a place and rent it out. Not only will you make income on the rent, but over time the value of the property will increase. You can then leverage equity in the property to borrow more and build up your portfolio over time.

If you only have a few thousand dollars, though, then I would invest it in a high interest term deposit or online savings account.

Daniel asks…

Can you work in investment banking without an Ivy League degree?

I want to work in the investment banking industry, however I do not come from an ivy league school. I go to a good school with a very reputable business program in Manhattan. No it isn’t NYU.

Come fall, I will be a second semester sophomore. I’m taking my core classes, including a investment and banking course. My goal is to get a legitimate internship in the spring, relevant to investing.

Now assuming I get all A’s, a B here or there, work 20-30 hours a week at some restaurant to help pay for school, and become the leader of many clubs, what are my odds? I’m gunning for a 3.7 GPA or higher.

I’m very sociable, have an excellent sense of style, and stay up to date on relevant news.

I’d prefer answers from people who have or are working in the industry. Thank you.

financi4 answers:

Absolutely. Check out to read the opinions of many in the industry.

John asks…

would method obtaining EB-5 visa work in this way?

according to legal explaination, it says: The vast majority of all EB-5 applications are made through a certified Regional Center (90%). a smaller number (10%) are investments into a closely held or “Direct” business.
I try to understand the 2nd part of it. does it mean: if I were a restaurant owner in the states, someone could qualify as an applicant by investing $500,000 in to my company by open more restaurants to meet hiring minimum 10 employees requirement?
this example is just an illusion of my feeable assumption. it can apply to any business. am I thinking about it in the right direction or just total lost in understanding the concept of EB-5 visa program?

thanks for any advice.

financi4 answers:

You have it wrong slightly

read this it may make it easier to understand

Charles asks…

Should I invest in a casual dining restaurant hoping they will rebound!?

I work for Ruby Tuesday and I think I can buy stock and hope they will rebound!

financi4 answers:

If they don’t have a change in management style, nothing will help them.

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