Opening a restaurant being young? -

Well, I got a few questions, actually I m 18, and I started studying at the university, but I want to leave Spain to go to the US, and my dream was always to got my own restaurant, and I d been seeking some information about how to open it up, and there s no money to afford it, so I heard that if you present a Business Plan to the bank, and they accept it, they d give you the amount of money to start your business. Another point is that my parents are persian, so I know about the culture and meals and so, but I wanted to know, which do you think would be a better idea, italian restaurant or persian, and do you think i can achieve what I want being so young? Thank you.Hesam

While you can do this to a degree, a business plan is far more complex than you may imagine involving accurate estimates of costs, and a marketing plan as well as the investors an their percentage of ownership as well as their specific investments. right now banks a loads of under performing small business loans and you would need to show both an educational background and the practical experience needed to make a go of such a venture. I do think working in the field is absolutely needed. This is a 18-20 hours a day business for a the owner. The failure rate is 57-61% in the first three years. This is a high risk low return opportunity for the bank unless it is a franchise which eliminates some of the risks.In every case you will have to have investment funds - some skin in the game so to speak to get to first base with any lender.

Sorry Dear, but no bank is just going to give you money to open a business. You have no experience, no equity and would be a poor risk. You need to gain experience in the catering and business trade for a few years.

I think you d be better off getting a job at a restaurant to get some experience of how things are run. Then you can try and save up some money, the bank will not accept you for a loan if you have no income at all.