Everyone in the restaurant business knows how difficult it is to succeed. In fact, four out of five restaurants close within five years of serving their first meal. In large part, this is because margins are relatively low for restaurateurs—to the point where just slightly more than one-third of restaurant owners believe they are in a solid financial position.
A new year is right around the corner. If you’re a restaurant owner who’s hoping to take your business to the next level in 2018, now is the perfect time to start planning ahead and devising your game plan.
If you’re like most other restaurateurs, your financial situation probably leaves something to be desired. When money’s tight, you have a number of options at your disposal. You can raise prices—at the risk of scaring off some of your customers. You can shop around for better deals on food and drink—but you might spend a ton of time only to realize your current suppliers are the most competitive. You can look to move to a more affordable location—but at the risk of alienating many loyal customers.
The good news is that there are other options you can pursue that aren’t anywhere near as risky. For example, by applying for a restaurant business loan, you can get the money you need to grow your business and create even more satisfied customers.
Restaurant business loans are available from reputable non-bank lenders. Unlike most traditional financial vehicles, these kinds of loans are much easier for small business owners to obtain. The application process can be completed in as little as 15 minutes. And, once approved, money is sent to the business’ bank account in as fast as 24 hours. Compare that to a bank, which might take as long as three months to complete the loan process.
Whereas banks tend to lend money to businesses that have near-perfect credit scores, non-bank lenders are willing to fund companies that don’t have the best scores. Generally speaking, businesses just need to have been open for at least one year and be able to prove they are able to generate revenue consistently.
Use a restaurant business loan to take your restaurant to the next level in 2018. Here’s how you can put your loan to use:
- Hire more staff. It’s impossible to serve up exemplary dining experiences if you’re short-staffed. Use your loan to hire additional wait staff and kitchen help.
- Give your staff raises. To make sure your best workers stick around, you can also use your loan to give your employees a little bit more money. Even the most enthusiastic employees work for cash, after all.
- Renovate your kitchen. The average restaurant spends upward of $115,000 renovating its kitchen. Odds are you don’t have that kind of cash laying around in your rainy-day fund. That’s where a restaurant loan comes in handy.
- Open a second location. If business is going well but you just can’t get to the next level, opening a second location in a hip neighborhood might be just what you need.
- Buy a delivery vehicle. If your restaurant doesn’t offer delivery, you can buy a small truck or other vehicle to take food to your customers. As an added bonus, brand your vehicle with your company’s logo so it serves as a mobile advertisement.
- Get restaurant merchandise. You may also be able to generate more revenue by selling restaurant-related apparel (e.g., hats and t-shirts) and other items (e.g., pint glasses).
- Launch marketing campaigns. You’ve got to spend money in order to make it. Use your loan to increase your marketing outreach for 2018. For example, you can invest in content marketing efforts to improve organic SEO rankings, generate buzz, and draw more people to your dining room. For more inspiration, check out our e-book that features more than 70 marketing ideas restaurants can use to attract more customers.
Can’t wait to get started? Apply for a restaurant business loan today and start working on achieving your goals for next year!