Why People Lose Their Life Savings in the Restaurant Business & How to Keep It From Happening to You    Would you be willing to put a large portion of your net worth into an investment that is highly illiquid and has a 50% or more chance of being worth zero, or less, at the end of five years? You are probably saying, ABSOLUTELY NOT, no rational person would. But thousands of individuals do it every year when they decide to open an independent restaurant and finance it totally with their own money. It’s tragic that decent, hardworking, well-intentioned people squander their nest egg when their restaurant dream turns into a financial nightmare (and it happens all the time). If you want to open a restaurant, and many of our Profit Tip subscribers do, we have one rule that will help to  keep you from making a really dumb mistake and reduce the odds of  losing all your money in the restaurant business. The answer is to use OPM ( Other People’s Money). Yes, having investors does add an additional layer of work and you will have to share of portion of the equity, BUT, it is one of the best ways to prove your concept and plans make some level of sense to someone other than yourself. It will help to keep you from making a really dumb decision and a potentially catastrophic financial mistake. Some of the richest people in America seriously limit their personal investments in their own startups. Highly successful and self-made billionaires Stephen Spielberg, Jeffrey Katzenberg and David Geffen founded Dreamworks Pictures in 1994. They needed a half billion dollars to get it started. They could have funded the entire amount themselves but instead convinced Microsoft co-founder, Paul Allen to invest $400 million. Why? It’s because rich people who know how to stay rich don’t put too much of what they have at risk in any one investment, especially a risky startup, even if it’s their own. Take note:  “ALL” startups are high risk. If you’re planning on opening a new restaurant, realize the odds, statistically anyway, are stacked against you. If your idea and plan really have merit, you should be able to find one or more investors to finance the bulk of it. And here’s one more rule – don’t sell it to family members. That’s love money and doesn’t count. It’s important that you keep enjoying your holidays and family reunions. If you look hard enough you’ll find there are lots of people with money who are always looking for good deals to invest in. Notice we said “good” deals. What to do (short list): Develop your concept, thoroughly research your market and competition to determine if there’s really a demand for what you intend to do. Then communicate your plan in a professional business plan that includes  financial projections based on objective, realistic assumptions. Bottom Line: If you can’t convince someone to invest in your restaurant dream, you probably shouldn’t do it. Don’t let what you think is a good idea, turn your life and future into a financial nightmare. We’ve heard it said that the world does not need another failed restaurant. (especially if it’s yours)

Jeanette Marcelle Chef, of Marlene Enterprises!

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About Jeanette Marcelle

Jeanette R. M Marcelle, a multitalented young entrepreneur who holds a Masters of Business Administration in Marketing from Anglia Ruskin University, a BA (Hons) in Human Resources Management also from Anglia Ruskin University. Also a graduated of the Trinidad and Tobago Hospitality and Tourism Institute, Jeanette owns and operates her private catering company Marlene Enterprise Ltd which provides catering services for Weddings, Parties and other special occasions. Notably, she is the “angel chef” who caters hundreds of lunches on Christmas Day on behalf of a charitable organization, for persons who are in need in and around Port of Spain. Jeanette has 14 years’ of experience in the culinary industry and 7 years management experience. She also has experience in implementing HACCP procedures holding certification in Food Sanitation, Safety and Microbiology from the United States Public Health. She did her industry training as a cook-trainee at the Trinidad Hilton Hotel and Conference Centre, under the first female Executive chef to hold the reins at Hilton Trinidad. Also, a three tenure with Royal Caribbean International Luxury Cruise Line, as well as working around the Caribbean and among some of the top Chefs in Trinidad and Tobago. Jeanette was a finalist in the Angostura Masters Culinary Competition in 2008 and 2010, also, a finalist in the Nestle Maggie first ever (2014) Easter bake off competition in the dessert category. Third place winner in the innovative chocolate cuisine 2015. Her style of cooking is a fusion of French, Italian and Caribbean cuisine. Among her many and varied accomplishments Jeanette has managed two retail stores, three restaurants and has been the Human Resource Assistant at an organization where she was responsible for overseeing the human resource related matters for over eighty (80) staff members. Jeanette is currently the Human Resource Manager at one of the oldest Sports apparel company. Despite her busy schedule Jeanette always finds time for outdoor activities, she is an avid nature lover and enjoys hiking, swimming and camping. She loves traveling and has visited several countries in North America and Europe. In her quiet time Jeanette spends time reading and meditating. https://chefsroll.com/JeanetteRMarcelle
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