How to Find Investors in Michigan for Restaurants

Michigan's economy has taken a hit, but many businesses are still flourishing.

Finding investors is not an easy task--especially in places like Michigan, which has been hit hard by several economic downturns after 2000. As of August, 2010, Michigan's unemployment rate was one of the highest in the nation, at 13.1 percent. Despite these challenges, Michigan has a strong working-class, entrepreneurial population, which is giving rise to many new restaurants. For those looking to open a new restaurant in Michigan, there are several viable options for financing your business.

Instructions

1. Write a detailed business plan. First write an executive summary, which is a description of your business and your objectives. Also include a market analysis of competitor restaurants and strengths, weaknesses, opportunities and threats in the local restaurant industry. Include a marketing and sales strategy that outlines how you'll promote and bring customers into the business. Finally, include a financial analysis and projections for your restaurant. For the financial analysis, it's important to have a detailed breakdown of start-up costs, including equipment, marketing expenses and legal fees. The more detailed your business plan is, the better your chances of securing funding.

2. Conduct a Google search to locate potential investors. Go to google.com and type in search phrases such as "Michigan restaurant investors" to find investors for your restaurant. Other search terms you can use are "MI," "venture capital," "investments" and "business funding."

3. Search the Midwest Angel Investor Network for possible restaurant investors. Go to midwestinvestmentnetwork.com, and sign up for a free account. Then, use the search tools on the website to find investors. Click on "Search" then check the "Food and Beverage" and "Michigan" boxes. Specify the range of capital you're seeking, then click on "Search" to bring up a list of restaurant investors in Michigan. Contact several investors, and present your business plan.

4. Network with local restaurant owners and ask them about how they funded their restaurant. Networking is one of the best ways to find investors for your restaurant. Try talking with restaurant owners outside of the city that you are targeting. Competition in Michigan is stiff, and you don't want to be perceived as a threat.

5. Ask friends and family for start-up capital. In places like Michigan, where investors may be harder to find in a down economy, friends and family can be one of the best ways to fund your restaurant. Set up a meeting with a friend or family member who you know has money to invest, and present your business plan. Be sure to approach it like you would any other business meeting, and not just a "casual conversation."

References

• Michigan Labor Market
• Midwest Angel Investor Network
• Dummies.com: Seeking Financial Foundation for Your Restaurant