How Do I Sign Alaska Banking Business Plan Template

How do i industry sign banking alaska business plan template

Marcus Giuliano here international speaker business author Forbes Business Council contributor and a restaurant tour so this is a question that I get a lot and I see a lot of people post this on on forums um so I grabbed another another person just posted this probably yesterday and of course this is this is a question this is like one of the most major questions that that's out there for a brand new restaurant owner is how do I get restaurant investors but specifically I need help getting a business plan a business plan is is what every restaurant owner thinks is is crucial and thinks they need one I'm going to talk about my opinions on a restaurant on on this today on getting on actually building a business plan now for my restaurant I built a business plan it was like a 15 page business plan I took that business plan in front of a board that then voted on giving me some some extra money but it wasn't the way I got my original funding I've got my original funding I was my own money I mean it's some some extra money and so I went in front of a board of like a 15 page business plan and everything detailed out and I got to tell you I'm it was it was a local board that that has money for humor needed Community Development um they actually looked at the business plan and they were looking at it and they had no idea what they were they were looking at by the way just no clue in there I go yeah yeah yeah and then they they just brush it off and like yeah and I've also seen some of these municipalities approve business plans that are just so terrible because it's just it's like wow you just approved a restaurant in this location and like haven't you done your homework because just by doing market survey there's no reason even a restaurant like that theme could even exist in that location in this a natin so business plans but if you want to approach somebody and investors and an investor or multiple investors what kit what's the best way to write a business plan it's typically the question Marcus I need help writing a business man first question I asked is who's it for oh I want to show it to a couple of people some private investors and see what they think they get money from here is why you do not need a business plan you do not need a business plan I'm gonna talk about this this might be a shocker for some people I know I had one and believe me um I didn't use it to go to private investors to have my own money and we went and did it for a municipal reason for this and that to sit in front of a board who was looking for numbers it wasn't their money so they weren't really concerned with it cuz they were there giving they're the gatekeepers to money that was that was you know as far as grant money so there wasn't typically their money but if you're approaching somebody has to somebody for him $5,000 $50,000 $100,000 $250,000 there's a specific reason why you're not to give a business plan zero business plan before we jump into that my 50 mistakes that business owners make book I believe the business plan is not in here so don't go looking for it in there but this book is for free by the way Lavinia will drop a link I'm not sure if Lavinia is live watching right now but as soon as Lavinia Lavinia is on she will drop the link to this where you get a book for free just pay for shipping so now why don't you want a business plan people are gonna say that sounds crazy Marcus that's just that just sounds insane like I want to build a restaurant I need investors why don't I need a business plan so here's why you don't need a business plan because a restaurant is extremely high risk a restaurant is the most extreme risk going out there in the business world the restaurants have the largest failure rate their undercapitalized a lot they're under knowledged a lot it's just it's just amazing Lavinia is on now Lavinia if you can drop the link for the book 50 mistakes of business owners make that would be fantastic again that books for free just drop it on the link there that'd be great so why do you not need a business plan you do not you've heard me correct you do not need a business plan when you're approaching private investors for a restaurant because the restaurant is extremely extremely high-risk people you can look for people to give you money I'm not I'm not saying don't look for investors I'm saying don't come up with a formal game restaurant plan my business plan I mean you might as well take a business plan and just crumble it up and and and throw it away when you're approaching private investors and here's why extremely high-risk I know I've said that if you're any experienced investor any experienced investor which is what you want an experienced investor right you don't want an amateur investor you want an experienced investor but any experienced investor is gonna say Marcus I know you can fudge the numbers and I know restaurants are extremely extremely high risk they're gonna know that up front that you just add a couple numbers in and extrapolate the sales out and all of a sudden everything looks fine on paper and they're also gonna say they're saying I know you can do that a non experienced investors gonna look at that and say wow wow wow this is great we're gonna make money we're gonna make money I can put more money in we're gonna make money this snap now what happens when you don't make money what happens when there is no return what happens when you can't even afford to pay back the investor that investor is going to hound you for the money they're going to be down your back for the money they're going to they're gonna let you know where's their money who's got my money you got my money and where is my money and that's what this kind of investor is gonna do that's rely upon a business plan well you said it Marcus you said you're gonna make this amount of money and we're gonna break even but you said it it's in paper I have it in paper you don't want that kind of investor you did invest that you want for your restaurant or investors unless they make us plural the investors that you want for your restaurant are people that believe in you of course they want their money back but they're gonna give you money and understand that it's extremely high risk they they're gonna understand I might not get their money back I might not be able to give them their money back and they're going to put with that and they're understand that you might need an extra two years three years four years five years you're not locked into a certain time to pay them back and that's the last thing I wanna do is lock in certain payments for investors you don't really want to lock in payments every month I owe you $1,200 and I owe you $12 on that's the last thing you want to do I'll explain briefly on how to set that up uh the most efficient way um so again you want to get the right investor someone who believes in you believes in your mission believes in your skills and capabilities and says wow I really trust markets because I've seen him operate two of the restaurants I've seen him under pressure I've seen what he's done financially I've seen what he's done I believe in him I believe in his restaurant yes let's a good idea let's do this Marcus here's 10 15 20 grand whatever now you want to buffer people's losses so you don't want to go to one person and say I need $500,000 you want to go to ten people and say I need $50,000 each or you want to go to 50 people and say does need ten thousand ten thousand dollars it's all I need fifty people ten thousand dollars each that's an easy number for a lot people to break down and if somebody's gonna give you $10,000 or $25,000 and they need they need a business plan they're the wrong investor they're giving you that money because they understand this might or might not work so if you start switching your mindset to get those in type of investors they're gonna give you much more leeway and truly understand and believe in you because they believe in you you're gonna get that lead away from them now here's an interesting way to approach this and I know a friend who actually has has successfully done this in chief forty restaurants very successfully done this he gets his investors to put up 100 percent of the money 100 percent of the money comes from comes from 25 guys or 20 guys right he'll raise that half a million a million dollars he puts zero and he uses other people's money but they've seen him in his previous 20 restaurants 30 restaurants they've seen what he's done and he's had restaurants that have failed before he's close up restaurant he's they've gone under so not every restaurant even from the best restaurant tour out there is going to succeed so again because this is very very high risk and you want your investors to know that upfront high risk no business plan I'm not making any promises you're giving me money because you believed in me and what I can do in because you've seen my past success so he gets these guys to put up all the money he pays them back first before the restaurants allowed to make money over four he's allowed to take profits okay so this is key cuz this was called a preferred investment so if you get guys to give you 200 guys and gals investors that give you $250,000 the restaurant has to pay them back first not on a scheduled time frame as the money's available it pays them back first before the restaurants allowed to make money before you as the primary owner is allowed to take profit you can get up you can get a licensing fee you get an operational feed de minimis how big a bigger of your role is in the restaurant if you're just there you know just overseeing the restaurant not really working it you're doing other businesses you might take like a 2% 4% 6% management fee then you pay yourself because you still have to run through run through some type of a management regime and and manage so you're gonna get paid something but not much you pay all of the $250,000 back then now zero interest on that by the way zero interest they get back face value for their investment then from there if you've got 20 people 20 guys 20 investors in to do that $250,000 they each get 1% of the business they get 1% of the business for the life of the business so they get dividends of 1 percent for the rest of the of the business you maintain 80 percent of the business you might want to give 10 percent to a chef partner to a managing partner in front of the house you might want to divvy that other percentage up where you still have 51% or more controlling interest but you're the guys you have approached are now at 80 20 percent all 20 of them have one percent each and you might not think well gee Marcus what's in it for them if you're a smart restaurateur you're gonna sign a 20-year lease which means you have 20 years to pay them back make money and make money now most restaurants that takes 7 years 6 years 5 years my one friend in a year and a half and so in his restaurant so he can pay all the investors back so if you can pay all your investors back within the first five years they have 15 years left on a lease of you paying them back one percent of the profit that's their interests okay and if you're in a restaurant is doing three million dollars four million dollars five million dollars this is a very very lucrative offer for an investor throw in 25 grand get paid is 25 grand back within five years and then get 1% of a 3 million dollar business of revenue not a gross revenue but of the profit of a 3 million dollar business or the profit out of a 5 million line business I mean that right there is an amazing situation for an investor right but again it may never get to that because this is a very high-risk investment so that's how you do that it's called a preferred investment they get paid back before the Russian allowed to make money from you're allowed to think profit before you have to really pay yourself something take a management fee if you need to if you're operating I guess the shaft and you obviously have to draw a salary and then they get a long long term lease and there's things on leases too that you should know like like you know an inexperienced restaurateur will get a lease that that they can get out of the thing get out of like every year they have an option to get out of so but you know landlords landlords it's tough on landlords on this one because you have to be a really experienced restaurant tour and the landlord has to say wow this guy's coming in here he's throwing a half a million dollars into my building nor million dollars into my building and when he leaves he's gonna leave a lot of that stuff there she's gonna really beautify my building and I know that he has you know one other restaurant to or the restaurants or whatever name is very successful so the landlord has to be willing to take a chance to where hey I can get out of this without you as the owner I'm gonna have this without you know signing away personally for this and you know if it doesn't work I have I can give him 12 months notice or six months notice and where he's gonna get those that kind of lease from the corporation and then terminate that lease but have a 20-year locked-in lease and some restaurant tours I speak to her like Marcus my landlords would never ever ever ever go for that and landlords do go for that if you never landlord finds the right restaurant owner the right restaurant or they will do things like that for them so I know people that have done that I really know people that have done that so and some Restaurant tours say okay well you know wealthy landlord give me was a five-year lease with three five options that's better than you know a full twenty run of five year with three five-year options and again the longer the lease you get longer the options you get the more attractive it is for an investor if you approach the investments and either borrow $25,000 so open my restaurant you and how many other are the people and you got a five-year lease as an experienced investor I would say there's no way you're gonna pay need act 25 and 10 other people $25,000 in five years and there's not gonna be any money in it for anybody so again you want to find experienced restaurateur experienced investors in the restaurant industry people who understand extremely high risks they might not get their money back you do not see a business plan whatsoever because the business plan can be manipulated any such way to make it look good and if you can manipulate a business plan that good you might as well go to the bank and get money from the bank or wherever but I people don't go to bankers a bank won't give you money and when you get a loan from the bank they want their money every single month on the 1st to the 15th whenever you sign they want their money every single month on that specific day and there is no lead way because the bank is not a good investor all right so future business owners future restaurateur owners no business plan whatsoever hope this helps anybody that that's going in this situation with this I know I've given this advice to a lot of other people before and they thank me immensely because you do not want a restaurant investors down your back looking for your money and pressuring you like the bank would pressure you everybody thank you for watching I appreciate it check out that link there for my free book 1506 of business owners make that book is free with that link to lavinia drop you just pay the shipping and we'll get it right out to you I settle into Alaska today sent one to upstate New York actually I sent a couple books after they posted a mailing a couple books out again today thank everybody for watching I appreciate it and we'll talk to you later hey Marcus Giuliano here so if you like the content that I'm providing in this video you can get my book 50 mistakes that business owners make for free follow the link below in the description of the video and there's a link to get this book for free I will ship it to you you just pay the shipping I've got the books already here they're already paid for 50 mistakes that business owners make 15 years plus of me documenting my mistakes and how I corrected them and how I mastermind with some of these mistakes and how I learned from others and what I've teach my oaching clients and again this book is totally free so take advantage of it while supplies last