One of the most promising sources of funds when looking to expand your restaurant is private equity investment. Although investors can be hard to come by, they often have fewer requirements as compared to a bank. If you are looking to find an investor to expand your business, understand that these investors are often approached by thousands of other restaurant owners who like you have a business that they want to grow and need their money to do it.

So how do you stand out from the crowd and secure an investment? The following five tips should be a great place to start;

  1. Keep the Customer in Mind

Investors are attracted to a proposal that demonstrates long-term growth for the brand. To make them see that, your proposal should be something new that you want to add to your business. It can be a new delivery service, a new location or a new idea to improve in ambience. But whatever you choose, customer satisfaction should be the underlying goal. Being able to demonstrate the benefit the new addition will bring to your customers and how you’ll put them first can mean the difference between getting the funding or not.

  1. Present a Well-Developed Property and Location Strategy

You will have a better chance to get funding if you demonstrate a clear understanding of good site economics. If you plan to grow, you should have a clear understanding and be able to communicate clearly the expected return on investment for the new sites. You should also have a clear property and location strategy and you increase your chances for successful funding

  1. Determine the Barriers for Growth if Any

You must also determine the size that your business can scale to from the onset and be able to easily communicate this with potential investors. To do this, it is important to have a clear understanding of the market you operate in and if there is potential to roll out operation regionally. You must also be clear on the limitations of your offering are. The fewer the barriers, the more likely you are to secure funding.

  1. Demonstrate Firm Control

When you have total control of your operational and financial assets, potential investors are often more confident in your ability to run a successful business and will therefore be more inclined to fund you. You should be able to demonstrate good cash management as well as stability in debt or capital funding. Timely and accurate performance reporting will also add to your credibility.

  1. Invest in People

Many investors will back a business whose employees demonstrate a passion for its growth. That’s because a business that has invested in people is likely to provide valued service to its customers which is the cornerstone of any good business. This is more important in the hospitality business than any other sector since it is a people-based industry often with entrepreneurs who are passionate about their businesses and the service they provide.

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