This might be the first time you’re hearing this, but an eating house is just another name for a restaurant. Because restaurants are abundant, you probably have an idea of how eating houses work. By definition, an eating house or a restaurant is focused on preparing and selling meals. Some eating houses are licensed to sell alcoholic beverages to be consumed in their premises while others are not.
Why Have An Eating House?
With food being a basic need for everybody, a restaurant business will always have customers. However, it’s just too expensive to fund a restaurant business. Aside from the capital you need to have a physical branch, you also need to have cooking equipment prepared to serve meals in at least 15 minutes. You also have staff to worry and pay for. With all these in mind, one would think that setting up a restaurant is a bad idea, but you’ve seen restaurants succeed too and know that when executed well, a restaurant can earn you a lot.
How Do You Finance An Eating House?
It’s already established that you would need a large capital in order to start an eating house. If you don’t have this money yet, there are ways on how you can raise funds for your business idea. Here are five ways on how eating places can raise business finance.
Join crowdfunding sites
Crowdfunding sites are places online where you can pitch in your business venture and people from all over the world can pledge or invest in your business idea. Usually, friends and family pledge through crowdfunding sites and occasionally, there are strangers who are willing to invest in your idea. While crowdfunding sites are perfect for low-cost capital raising, it is not always ideal for eating houses since it is not a sustainable source of capital for a common business model.
Look for an investor and/or a partner
An investor is one thing, but what would be better is getting an investor who can also be your business partner. If you are a chef aspiring to have your own restaurant, then you can partner with someone who knows the restaurant business well and they can be a co-founder with you. In this way, you don’t just split the capital needed, but you also get additional help in running the business.
Take a loan
This is an oldie but goodie advice for any person aspiring to set up their restaurant. If you have a good credit score, then you can always take your chance by getting a bank loan. Some people would advise against it, but bank loans offer low-interest rates. You just have to go through a long approval process.
To add to that, banks are not the only ones providing loans for people aspiring to set up their eating house. There is what you call a Small Business Administration (SBA) where partners and organizations are encouraged to invest in a small business which may include your restaurant business.
When it comes to eating houses, there is no shame in starting small. If you don’t have enough capital, you can build the capital yourself by starting out small and going to food parks or food bazaars. These places often just offer rental space and you can get to know more people during the event. If people like your food enough, you might have enough sales that can go to your capital fund.
Aside from starting small, you can also try hosting events or offering catering services. In this way, your dishes will be known to more people and you already have a sure number of customers and revenue. Catering services are common, but so are events that require various food services. You can ask relatives and friends for referrals or you can even host their own events at a discounted price.
When starting an eating house business, it can be challenging to look for finances. But don’t lose hope because there are a lot of ways on how you can build up the finances of your eating house. Just a tip, it can be a rough start but as long as your eating house offers something different and customers will love, but it can stand on its own eventually.