 Hey guys, my name is Wilson. Today, we're going to be talking about how do you start a restaurant with $0, okay? Big fat $0. A lot of you guys have been messaging me about, hey Noah, I have this brilliant idea. I have grandma's recipe in this really, really good area and community, which I want to be able to open up a restaurant. But the biggest thing is that I don't have the capital and the investment. When I first started off, I didn't have the capital either. However, I was actually able to save up from other businesses, which allowed me to diversify and invest in this business. I know some of you are not in that position, which is the reason why I'm shooting this video with you to share with you the four secrets on how do you actually raise capital in order to run your own restaurant, in order for you to be able to bring that recipe to life and in order for you to be able to create something that you're so excited in building. If you guys do stay till the end, I'm going to share a story with you on how we are actually able to raise $200,000 Canadian for my ice cream shop business. So make sure you guys stay till the end, otherwise we're going to die right in. The number one way to raise capital, the easiest way out there is through friends and family. Now I'm going to explain to you the pros and cons of raising capital through your friends and family to run your restaurant business. The pros of that is that it's the easiest to get the money. You don't need to show them a proof of concept. You don't need to show them a pitch deck. You don't need to show them too, too much things. The only reason why they're investing is in you. As much as they want to say that they want to check out the location, they want to check out the product that you're serving, they want to check out your business plan. All those honestly is irrelevant because at the end of the day, if they're looking for a business opportunity, they wouldn't be investing in you. Just simply put, let's just put it out there guys. It is because they love you, they trust you and they want to support your dreams in building a food and beverage restaurant. That's the reason why it's going to be the easiest way to raise capital and that's the number one pro of raising capital through your friends and family. On the flip side of raising capital through your friends and family is that you're going to be under a lot of pressure. You're going to be risking the relationship of you and your family, you and your friends. It's a really, really big risk that you're taking on because if the business is successful, great, everyone is happy. You're making money for your friends, you're making money through your family and on top of that, you're able to bring your vision to the world. Now on the other hand, if your business is not successful, then technically speaking, you've just lost a friend, you've just lost a family member and you need to understand and weigh the risks of this because there's so many of my friends that I see that when they take on different projects and raise money through different of their families and their friends, they've lost their friends, they've lost their family, they get into arguments because they didn't set the right expectation. So having said that, if you are to be able to raise money through your friends and family, do make sure to make sure that you set the right expectation. Let them know the duration of how long this investment is going to be. Second of all, let them know that 80% of the time, if not 90% of the time, they need to understand that the money that they're investing in you is at risk of being completely gone and that you are going to try your very best in order for them to help them grow the money, but there's no guarantee and that they should have that expectation of this is an investment, a high risk investment. And when you're able to set that expectation, hopefully, okay, hopefully you can actually keep this relationship intact. That's the number one way to raise money for your restaurant if you have no money. So raising money through your friends and family is one way that I highly, highly would not recommend to any of you guys. However, there's a lot of people that do that. I personally value my relationships much, much, much more than running a business, which is the reason why I would never, ever ask my friends and family for money. And I would highly recommend you not do the same as well because at the end of the day, what good does it bring when you have a successful business, when you don't have your friends or family to share that happiness with? What good does that bring? For me, it doesn't mean anything. I've seen too many sad stories of how entrepreneurs and people have lost their friends and family through business. And it's just a really, really sucky feeling, which I don't really want to go through, which is the reason why I do not recommend it, even though this is the easiest way for you to get money. The second easiest way to raise money for your restaurant if you have zero dollars is through governments, banks, grants, loans, and all this sort. The pros of that is that it's much, much more easier to deal with than your friends, your family, or your grandma because during Christmas time, your bank and your banker is not going to be there asking you about, hey, how's your restaurant coming along and give you that pressure? Now, the cons and the flip side of raising money through banks, governments, and loans is the fact that it may be a lot more paperwork. You need to be able to prove your concept. You need to have different collateral to make sure that the bank has something in their hands in order for them to lend you the money, right? So at the end of the day, you may need a guarantor who's going to sign on your behalf. So then that way, if you do lose all your money, then there is someone to guarantee that you will pay back that money, right? And on top of that, it's a much, much more strict process or a longer process for you to be able to get the money because you're going to have to write a legitimate business plan. You're going to have to write a forecast for your business and you're going to have to actually prove the concept to your banker and convince them or the agencies that this business is viable, that the recipe that you have in mind is going to be exceptional when it comes to the competition, which is a lot of times a lot more difficult than raising money through your friends and family. But this is something that I highly recommend if you are short on cash because you are not going to have to deal with the stress of dealing with your friends and your family. For different cities, different countries, there are different agencies, different banks, they all have different rules, which is the reason why I can't give you one straight answer of who to go to. It really comes back down to your city that you're in and the country that you're in. Give you an example of how we have done it in Vancouver, BC, Canada, is that we actually raise our money through the bank development of Canada and they're very, very lenient with their process of lending money because this bank is actually backed by Canada and they oftentimes they lend up to 90% of what you're asking for. So if you're for us, we're borrowing money, we were able to actually borrow up to $100,000 with zero collateral because this bank of them, they have much more higher risk tolerance for small businesses because this bank is made to provide funding for small businesses. So in your specific area, Google and actually try to find out and do research on specific associations, specific banks, specific programs that actually support small businesses and you're going to be able to find one that is relevant in your specific area. The third way to open up your restaurant with zero dollars is to find a partner, OK? What I mean by that is if you only have $50,000, you need to be able to raise the other $50,000 and you don't want to go through friends, you don't want to go through family, you don't want to go through government, then you can actually bring on a partner who can fill that $50,000 pot for you and that way you can actually work with someone that can actually grow the business with you. Aside from the cash injection that your partner brings, they can potentially also be a good partner that you can actually bounce ideas off with. They can actually take on different types of operation within your business. So for example, you know, you have to deal with marketing, finance, logistics, front of the house, back of the house, HR, all this crazy stuff and it's a lot of work when it comes down to it, which is the reason why finding a good partner who can actually bring value to the table is so, so, so important when it is about choosing the right partner. And that is something that is a really major advantage on finding the right one. Now on the flip side, we always, always hear crazy stories about how partners are running away with the money, partners are not doing anything, partners are suing each other, all these crazy things are what you would be expecting if you find the wrong partner. And that's the risk about bringing in someone that you're working with. So that's the reason why in this video, we talk about how do you find a partner that you can actually work with and building your business. Now, out of the three different options that I've mentioned, friends and family, banks, loans, all these different places and through partners, I think finding a good partner and finding a suitable partner is something that I personally would choose. Now, this is a really, really tricky situation because it really comes back down to your alignment in terms of culture, in terms of vision, how you guys do things, right? We talk about the division of the work. What is he gonna do and what are you gonna be doing and is he okay with you taking on, let's say marketing while he's taking on the finances, right? So how do you guys divide up the work which both of you guys are happy? Now, if you're able to find that sweet medium, this equilibrium, then that means you're gonna have an exceptional relationship with your business partners, okay? In this video, we talk about exactly how you find that partner that's gonna be able to help you build this dream restaurant of yours. And that's what we were able to do with 720 Suites. My partner, Brian, this is his face, okay, check him out. Super, super amazing guy. He does all the operations while I take care of the vision. He just puts in like 120%. Throughout the last five years of us partnering up, I can't thank him enough for pulling in all his weight. And also, we may have arguments, but we always, always know it's because we're arguing for the sake of the betterment of the company. It was never personal. He always is putting in 120%. And you know what? I can't say any more good things about this guy because without him, we wouldn't have 720 Suites and let's just put it that way, right? So for me, I got really lucky, but it was also very strategic when I brought in Brian. It was also a lot of hard conversations that we had in the beginning to set the right expectations. So he knows what to expect from a partner like me and I know what to expect from a partner like him. That's how a beautiful dream team is being built. The fourth way to open up your restaurant with $0 is to find angels and investors. So many people have actually messaged me and asking me how do I find investors and how do I find angels and invest in them? And I just find this question really, really dumb and really stupid. It is because why would anyone, okay, with a right mindset, would invest in you? He's just gonna ask that question. Why would anyone who has the money, okay, invest in you? What makes you different? Why is it that I'm risking 100, 200, 300, half a million dollars on you? Why do I have to do that? What makes you special? A lot of people think that investors and angels are dumb people who just happen to have money that would invest in anything and everything and that is precisely wrong, okay? People who have money, they got there for a reason. It is because they're able to actually do the research, they're able to actually be in the trenches. They know a lot more about business. So this is actually the most difficult place for you to be able to get investment from because angels and investors, they invest in things that they think and see opportunity in. So when it comes out to when you're asking yourself, hey, I wanna raise money through angels and investors, ask yourself that one question. What makes you different? Simple as that. The pros of raising money through angels and investors is the fact that these guys have tons of money and are willing to be able to invest in you. You don't need to see them for Christmas. You don't need to see them during your off time. So then that way you're still gonna have a good relationship with your friends and your family. Now on the flip side, they're much, much, much more difficult to learn because they would always ask why you? Make sure you have that question answered. Make sure you're able to actually convince these angels and investors. And on top of that, these guys oftentimes they would invest in people with more track record. With their money, they also would invest in bigger projects. We're talking about maybe multiple chains and they would also look at what you have done in the past to make sure that, hey, if this person is telling me that they have built a 10 shop chain and now they have a new concept which they want investment in, hey, you know what? Maybe this guy knows what he's talking about and he just needs another extra 500K in order for them to scale to the next level, right? Then that's how investors and angels think when they're investing in food and beverage concepts like this. By far out of the four different ways to raise money, I think this is the most difficult one because like I said, why you need to answer that question in order and be super convincing on that note in order for them to invest in you because at the end of the day, think about one thing. Just because you have a crazy delicious recipe doesn't make you any different from the millions of chefs out there. If they really want to get into this business they can easily hire a chef to be able to do R&D on this recipe. They don't need you. So make sure you answer that question. If you have something that is so different about you, your background, your resources, your connection, your anything, you know what? Bring everything of that to the table. Then perhaps you would have a chance. Other than that, I would highly recommend just sticking to the first three different options and raising funds for your food and beverage restaurant. So there you go. The four ways to open up a restaurant with zero dollars. First way through friends and family, okay? Second, through banks, associations, grants, loans, whatsoever. Third is through partners. And fourth and lastly, through angels and investors. These are the four ways for you to be able to raise capital if you don't have any to start running with your restaurant business. And as I was sharing with you and as promised, I'm gonna be sharing with you a story of how we actually got 200K in investments in 20, well in 720 suites, our ice cream shop. This actually happened three years ago when I was actually documenting my journey and building this ice cream shop, now international chain for 720 suites. And throughout this period, we were experiencing some cash flow problems, which is a reason why we're like, hey, you know what, we're suffering, we're challenged and we really need help. One person that actually was following along the story reached out to me and actually asked me, hey, you know what do you need help with? And we started having a conversation. And in turn, he was actually able to see a lot of different opportunities, from us partnering up with one of the biggest Asian supermarket in Canada, which is owned by Loblo's TNT supermarket. Okay, and the second opportunity is for our expansion into China, right? This was two very, very big selling point, which at the end, through numerous conversations, we're able to raise more than $200,000 for our project. At the end of the day, I personally wouldn't bank on this type of investment because you know what, it's very, very difficult to raise funds through investors. But nonetheless, this is the short story of how we're able to raise $200,000 for our food and beverage restaurant and shop. If you guys liked this video, I'm sure you're gonna find a lot more value in the link below. Check it out in the link below. I actually share with you my very beginning to where we are at right now, from the A to the Z, from starting from negotiating free rent to choosing the perfect location, to crafting the right menu, which ensures us to have at least 20% margins, to marketing tactics, to dive into your customer's mindset and offering them something that is irresistible to all the marketing stuff that we have been doing. Everything within that link below. If you guys are interested, make sure you guys check it out because that's where we share all the things that I've been learning through the last 10 years of running business, okay? So make sure you check it out in the link below. Otherwise, subscribe within this journey because I'm gonna be sharing a lot more of these videos of one-on-ones. And if you guys liked this video, make sure you guys show some support, smash the like button, comment in the section below of what you thought about this video. Otherwise, I'll see you guys in the next video.