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Max Hiller posted a new question on 1/13/2010

Where can capital be raised for a young business that has yet to show a profit but needs operating capital to continue operation?


We opened in September, just as the area started getting hit with layoffs and the busy harvest season kept the farmers out of town. We have now weathered a harsher than usual winter and two rounds of the flu epidemic. We have all the components of a successful spring and summer restaruant: soft serve ice cream, BBQ, outdoor seating, but have to get to that point to start making any money. We have cut our expenses about all we reaslistically can and just don't seem to have the cash to make it that far.


Industry

Food / Beverage


Skills

Operations


State

Missouri


 
picture of Alice Nadin342

Alice Nadin Responded on 1/14/2010


Max,

In addition to what Lawrence suggested on going to www.score.org -- look for new revenue sources - catering, children's parties, themed party, office lunch delivery, cooking classes and so on. Do not wait for the business to come to you - go find it. I had a client who spend the winter giving cooking classes on how to use a 'smoker' for meats that not only brought in much needed revenue, the coupons he passed out at his classes (redeemable quickly) brought much needed business. Between the 2 he weathered the storm you are having. Also as a local business look for opportunities to showcase your business talents are all local events. See your local Chamber of Commerce and see how you can get involved. Set up a BBQ booth at all events and pass out those short time coupons to drive them to the restaurant. Sponsor a local kids soccor team with your biz name on all t-shirt - cheap, effective advertising and host their victory celebrations at a discount. The clubs will pass along any discount and a crowd of 20 at a $2 discount is great business versus no business at all. Get involved - dig out those opportunities - there are many many local things happening - get in the center of it all so local people know your biz name & location.

Alice, SCORE Pittsburgh

 
picture of Lawrence Brody1

Lawrence Brody Responded on 1/13/2010


The possibility of an outdoor seating restaurant doing very much business before the end of March is remote. Most such businesses close for the winter and you should probably do the same. I don't have enough information to be able to help you. This forum would not be the proper one for you to share the needed information with me. Go to the SCORE web page at www.score.org, request online counseling, and request me as your counselor, I will try to assist you.

Lawrence Brody
SCORE Counselor

 
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