Many people out there dream of starting their own cloud kitchen but step back due to low financial conditions. Not having enough revenue to invest in order to start their kitchen business shatters their dream.
This article helps you to understand where you can get funding or financial help to get started with your cloud kitchen business.
To qualify to get funded by any external means you should have –
- a proper concept for your cloud kitchen
- a nice location
- blueprint of setting up your kitchen
- confidence for various interviews and pitch decks
- Online lenders
Online lending is any kind of loan that’s not directly from a traditional bank. Online lenders offer loans faster than banks. They don’t demand much collateral. And when compared with banks, online lenders’ approval rate for funding is much higher.
For Example, Lending room, Lightstream, etc.
2. Family and friends
Borrowing loan from family and friends is a lot easier than going to any traditional bank or money lender. It’s always the best option to take help from your family as they know clearly whom they are funding and what’s the status of your business.
Your family and friends may allow you to pay a bit later when your business is not doing good and also are more easily convinced than any bank or investor. They would comparatively charge a lower interest amount than banks. Always remain transparent to the one from whom you are lending money to avoid any damage to your relationship.
Banks are also one of the ways to get funding for your cloud kitchen business but they demand cash flow before agreeing to lend you the loan. Also, the interest rates are higher in banks when compared with other modes of lending money.
You can get a loan from the bank without cashflow, if:
- A large amount of collateral is given.
- A large amount of downpayment is paid.
- A perfect prediction score is given.
Most of the time investors become shareholders. They don’t help you run your business but ask for a share in the profit gained. A real investor always gets more passionate about your business in order to scale it up high and get more returns than invested.
If an investor observes potential in your business, they are likely to invest a hefty amount in your business.
What are the requirements to get funded by an investor?
- your cloud kitchen concept should be unique and different from others.
- should be scalable and franchisable
- should be profitable
What do investors see in the promoter before funding them?
- the promoter should be good and confident in his business plan.
- he should have long-term thinking to scale up his brand
I hope this article will help you with where your cloud kitchen can get funded if there is any need for financial help. If the blog is worth enough to read, then do give a thumbs up and share it with your mates. And do comment below your feedback!