Your Questions About Investing In Restaurants Can Work

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William asks…

How do I assess the value of a restaurant that I am thinking of buying?

I would be leasing the building from the owner, buying all the equipment and inventory. The restaurant has hads no advertising and has not been managed well. The restaurant around the corner is doing well, but this one is just barely making it. Do I calculat square footage and multiply by something or what? Help!! I would like to succeed in this and it seems like a good opportunity.

Justin answers:

Why is the restaurant around the corner doing well?

Why is the restaurant you are interested in buying doing badly?

Why do you think that it is a good business opportunity?

What metrics do you have to evaluate profitability?

Do you have the expertise to turn this restaurant around?

If you cannot answer these questions confidently, you should not pursue this investment.

I am not trying to discourage you from investing, but the fact that this owner is selling the business raises red flags because it is barely making it; and you don’t have any idea on how to evaluate it. It seems that the owner has incurred a tremendous debt and is trying to cash-out.

Find an experienced investor to partner with who has the expertise to evaluate the business to determine if it is a good business opportunity.

To buy a bad business is bad business.
To buy a good business is good business.
To buy a bad business for next to nothing and turn it into a good business is excellent business.

Michael asks…

What is a good business to invest in with the current market performance?

I am interested in providing a service but I am not sure what. I know for a fact, I would like to invest on something that is restaurant related or catering for that matter.

Justin answers:

Please click on http://www.4xmoneytrain.com

You will see how easy it is to make a substantial income with no experience and no guess work. A revolutionary software allows you to “SET IT AND FORGET IT”. You only need a few minutes a day to do this.
Make sure you fill out the survey and watch the two short movies.

This is the most amazing business opportunity I have ever seen. NO PRODUCTS TO SELL!!

Chris asks…

Who taught you how to invest in the stock market?

I learned the majority of what I know from a friend I met while serving tables at a restaurant. Now the only job I have is maintaining my investments. How did you learn? Who taught you? What did you do to take your education to a higher level? How much did you start with? Just curious about everyone else on here.

Justin answers:

A doctor I work with and Jim Cramer.

Thomas asks…

Is it pretentious to take our own chopsticks to a sushi restaurant?

My girlfriend and I absolutely love sushi. We go to a specific Japanese restaurant where we are regulars and are well-liked by the owner and staff. Would it be pretentious to take our own custom chopsticks, replete with a carrying case, to the establishment? We’re very conscientious with manners, being extremely conscious of every detail, manners, and respect. We do not want to come across as pompous or offensive.
BTW, it was my bf who wrote this question, he forgot he was under my name. LOL 🙂

Justin answers:

Absolutely not. A lot of people have invested quite a bit of money in nice chopsticks. You wouldn’t think it wrong if you went out to play pool and took your own custom made pool stick, would you? Go ahead. It will let the establishment know that you have a little class and they will appreciate that you think their sushi is the best in town.

Charles asks…

How can I find an investor (Venture Capitalist) for a restaurant?

I am a professional cook/chef and think i have a great idea for a restaurant in my area but am lacking the funds to do it.

Justin answers:

Venture capitalists do not invest in restaurants. Your best bet is to find a retired successful restaurateur in your area who is getting sick of playing golf. He and his golf buddies will bankroll you if they like you and your idea…

Daniel asks…

What does it mean when you invest money into america to move there?

Like i been looking at ways to immigrate to america and it says to invest $500,000 or $1 million into a company or something, can someone explain this to me better? What does that actually do? Doou get to permenantly live in america afterwards??

Justin answers:

One of the ways to get an immigrant visa is the investor visa, EB-5. If you are able and willing to invest at least 1 million dollars into a new US business that also has to create at least 10 new jobs, then you can apply for an EB-5 visa. Of course, that’s lawyer territory. You’d be getting a conditional, 2-year Green Card and after those 2 years you’d have to prove that your business is still going strong. Thereafter you’d receive an unconditional Green Card.

The $500K/5 jobs thingi is for rural areas where nobody would want to die, let alone live. It would be money flushed down the toilet. If you open a big restaurant or business where no people live because it’s so horrible there, it can’t be successful, so forget about that.

James asks…

Will someone help me write a business plan for a restaurant?

I want to open a restaurant but need some funds to do so. I know a business plan is essential in receiving the funds so any help would be greatly appreciated! Thanks.

Justin answers:

There are a number of free sample business plans on the Web. I suggest you check them out to see how to make one, and analyze the elements specific to the restaurant industry.

Here are some business plans:

Steak Buffet Restaurant Business Plan http://www.bplans.com/spv/3228/index.cfm?affiliate=powerhomeb
Restaurant Business Plan 1 http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-01/Restaurant-v1.html
Restaurant Business Plan 2 http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-01/Restaurant-v2.html

According to the book “The ABC’s of Writing Winning Business Plans: How to Prepare a Business Plan That Others Will Want to Read — and Invest In” http://www.amazon.com/exec/obidos/ASIN/0446694150/powerhomebizguid by Garrett Sutton, below are some tips to make a winning business plan that can get funding:

– Money follows management. Investors look first at the people involved in the company. If you are just starting out and don’t have relevant experience, investors expect to see that you have an experienced team of advisors and employees helping you in the business.

– Make sure you “sell” the one reason your business will become profitable.

– State clearly the strategies you will employ to get the word out about your business. Your business plan must show how you will leverage the Internet, public relations, viral marketing, and other strategies to attract customers.

– Present realistic estimates of the time, energy and costs of building a successful business. Do not underestimate or overestimate revenues. While investors know your numbers are simply guesses, they want to see that your numbers are within the “range of reality.” Be careful of your financial statements: this is one area where you can easily lose credibility if presented poorly.

– Benchmark similar companies to show that you’ve done your homework and researched the market.

– Your Executive Summary is your calling card. If it is not a winner, investors may not even read your entire plan. Emphasize your own as well as your team’s track record in the Executive Summary.

– Before sending your business plan to lenders and investors, send it out first to a few in order to get feedback. You’d want to correct your plan if someone tells you that you’re way off mark, rather than have a potential investor tell it to you and lose the chance to get the funding you need.

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