Creative funding for a wine bar?

by throwaway27lol. Posted on Sep 14, 2020    0    11


Hello there,

I am currently in the design and remodeling stage of a wine bar i am the owner of. The landlord is investing some money into the remodeling and permitting, and i am investing my own money into the equipment.

Anyone have some experience in sourcing a loan for funding your first business? i do not have collateral as i have all my money going into investing in the opening, and i still need to get additional money towards the build-out, equipment and cash reserves for opening. It has been tough to find a loan towards a full-service restaurant post-covid19. I am fully committed to getting this done, have moved in with my parents to save money and continue to pour my heart into this project.

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If anyone could point me in the right direction, it would be greatly appreciated.


Comments

kippypapa 1

No, at your stage it’s usually friend and family investment.

i1ducati 1

What about a Kickstarter? You might be able to get an SBA loan?

ConsultoBot 1

Perhaps you can go exclusive or somewhat partnered with some winemakers and they would give you a startup loan for selling their product.

Visual-Condition-881 1

You can try finding Angel investors. Like you said until bars a back in the swing of things it'll be difficult. Try the website start up engine.

LokiTM 3

I don’t know of any angels that invest in a single location food service business. They (I) need to see 20 to 50 times returns over a few years.

Visual-Condition-881

20 to 50xs is extremely inflated. You just have to find the right investors.

LokiTM 3

I am an active angel and on the board on the North Bay Angels group. Given the massive failure rate of angel investments, if the investors is interest in reasonable returns, any investment needs the potential for very large returns. There may be some people who are willing to invest without that chance of return, but very few. Even with 20 times potential returns from each investment, most angels will be hard pressed to beat an S&P 500 index fund for overall return over several years across their whole portfolio.

Visual-Condition-881

I understand who you are. Of course investment needs a good return but you have to judge that by what you are investing in. Is it a new concept or product? Yes, that will likely fail. As an investor you have to ask yourself; am I investing in a "sure thing" or a business that has been proven over time or am I taking a shot at a new concept or product. The sure thing will obviously be a lower return proposition.
20 to 50 xs return on any investment is just like trying to win the lottery.

LokiTM 3

The original poster is talking about a wine bar. Those kinds of business have among the highest failure rates and lowest returns of all startups. That is why I am bearish on suggesting talking to angel investors. There are always exceptions, and I am sure someone is out there for that investment, but it feels like at least a needle in a haystack problem to me.

Visual-Condition-881

We don't know the details of the business. It's a difficult time for restaurants and bars; however that doesn't mean it won't work. The best businesses to invest in are those that have proven themselves overtime. Where I live wine bars are very successful.
The original poster should explore all options.

LokiTM 2

It is not my intent to suggest that they will not succeed, just that at a general rule Angels may not be the best place to look for cash. I actually have a vineyard. It is not something I would ever consider as a an investment. :)