Venture capital . Once you have several restaurants under your belt, new financing options arise, says Saltz. If you have a hot concept that you expect will grow rapidly, one possibility is to obtain venture capital. Professional venture-capital firms invest significant funds in fledgling companies in which they foresee major expansion. In return, they usually expect to see a large return within three to seven years.
Many restaurateurs depend on a combination of financing sources.
Lane notes that he's seen many restaurateurs use investors to supplement a bank loan. It may be a good idea to locate an investor if you don't have adequate personal funds. Raising the dough Lenders and investors want to know one thing, says Stevens. They want to know how you're going to pay them back. They want to give you money and for you to use that money to generate capital and pay them back with interest.