A small cafe with amazing coffee and delectable treats isn’t too much for ask for is it? If you want to start your own cafe, you may wonder where the money will come from. Many cafes are small in size, which means that you won’t have to foot a big bill for retail space, but you will need the money for equipment, furniture, and employees. The good news is there are a number of ways to fund your business venture. Whether you cash in your assets or start a Kick starter campaign, you can get the funding you need to start your own cafe.
Cash In on Assets
There are a number of assets you can cash in on. Consider your retirement funds, such as your 401k or life insurance. Other assets include items that could be sold, such as jewelry, vehicles, and other high dollar items. It’s best to start with items that you want to sell and can part with easily. If you take a loan from your 401k, you’ll be required to pay it back. If you just withdraw money from the account, you’ll be forced to pay taxes on the amount.
Seek Out Investors
Investors in your cafe could include family, friends, or potential customers. Family and friends may invest in the company as a good deed or to be paid back when the business becomes successful. Potential customers may invest in the cafe in exchange for free products. For example, investors may receive free coffee for life. Sometimes, investors may request that you employ one of their relatives in exchange for the amount invested. Always carefully think about what’s being asked of you before accepting funds. No matter what you do, or who you borrow from, make sure all of your terms are in writing. Handshake agreements may seem more personal, but they won’t hold up in a court of law â€“ ever.
Apply for Small Business Loans
Small business loans can be obtained through banks, the federal government, or even local governments. Small business loans can be hard to obtain and you’ll nee to have all your ducks in a row before applying. This means having a detailed business plan including how the business loan will be used. Some banks may require you to take classes in order to qualify for loans.
Start a Kickstarter Campaign
Kickstarter is a wonderful way to raise money for your cafe. All you need to do is set the amount you want to earn and fill out the details on the website. The more compelling the description of your cafe and ultimate goals, the more likely it is people will want to donate to your cause. You are asked to provide prizes to those who donate. If your angel is local, you may want to offer a gift certificate for a lunch entree. If the person donating is not local, you might opt to mail out a t-shirt. Think of a creative way to show your appreciation.
Raising money for a cafe isn’t as hard as you might think. Begin by cashing in on your assets and then carefully consider other avenues that will help you raise the cash you need.