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Suppose that you and three friends from college would like to open a new restaurant. Collectively, you have almost 20 years of experience in the restaurant industry and, with lots of new houses in the area, you think that there’s an opportunity to make a lot of money if you can offer interesting food at good prices. You’ve even identified a great location, but you realize that it’s going to take a lot of money to get this business off the ground. As recent college graduates, you don’t have a lot of money, so you’re looking for the best source of funding. Realistically, you realize that you’re going to need at least $100,000 to sustain operations until your business starts to return a profit.
Follow-Up Questions
Before getting financing, what will be expected of you and your business partners?
Which source of financing would be best for you and your partners? Why?
What form of business ownership would be most appropriate for your new restaurant and why?
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