According to statistics published in the press, thousands of French people dream of having their own restaurant. As regards the necessary budget, some specialists speak of a sufficient contribution of 100,000 euros. Others cite an initial investment of between 300,000 and 400,000 euros. In any case, you have to be ready to invest to get started in this type of project.
Investments to plan
Opening a restaurant involves making investments in equipment, personnel and raw materials. Charges are one of the main expenses to be incurred. They include expenses which, by their nature, do not directly participate in the creation of value.
The costs associated with the operation of the establishment include rents, energy costs and telephone subscriptions. Regarding the payroll, we need a budget dedicated to the recruitment of employees essential to the operation of the restaurant. To this will be added the manager’s salary as well as social security contributions.
Regarding the investment, you have to prepare for the acquisition of essentials for decoration and furnishings. Sometimes it happens that it is necessary to carry out work beforehand. In this case, the budget must include the fitting out of the premises. The investment also concerns the purchase of kitchen equipment, such as the oven, freezer or microwave.
Where can I find the necessary funds?
Without money, opening a restaurant is almost impossible. This is why it is essential to have the necessary minimum in personal contribution. The idea is to be able to build up the equity for starting the business. The contribution can be made either in the form of a contribution to the current account, or in the form of share capital.
This financial base can be supplemented with a bank loan. Generally, the application for a professional credit will aim to finance part of the development work. You can also use the loan for the acquisition of materials or means of transport.
However, getting a loan to open a restaurant is not easy. One of the requirements of the banks is to have a coherent contribution. To put the odds on its side, the valuation of the goodwill is also important. This element is essential insofar as it appears among the investments to be financed. In addition, the bank will be able to guarantee its credit on the business. An overestimation of the latter will encourage the bank to refuse the request. It will render the guarantee non-legitimate.
Aid available for the project
In addition to professional credit, the restaurateur can claim other aid for the opening of his restaurant, including the loan of honor which allows to obtain on average up to 8,500 euros. It does not require any guarantee. In addition, it is an interest-free loan. On the other hand, the applicant must undertake to reimburse the amount requested by a fixed date.
Women are not left out when it comes to aid dedicated to business creation. They can claim the Guarantee Funds at the Initiative of Women or FGIF. The amount of this aid is 45,000 euros. The minimum amount is 5,000 euros and the maximum guaranteed rate is 70%. The FGIF is granted for a period of 2 to 7 years.
There is also financial aid granted by certain regions. Some are intended for business creation and others can be requested for the resumption of an activity. Each region has its specificities, hence the interest in learning about the subject.
To finance a restoration project, it is essential to know how to convince the bank. This particularly concerns people who decide to go through the “bank loan” box. Otherwise, there is a risk of seeing your project rejected.