Restaurants are some of the most capital-intensive businesses to start. Build-out and equipment costs, starting inventory, licenses, fees and working capital can easily add up to hundreds of thousands of dollars. To make matters worse, banks won’t lend to new businesses and not everyone has a rich uncle. So where do up-and-coming entrepreneurs turn for much-needed capital to fuel their dreams? Crowdfunding!
Crowdfunding is a financing mechanism popularized by Kickstarter and Indiegogo, where an entrepreneur pitches their ideas online and receives pledges from backers in exchange for rewards and gifts.
Crowdfunding is not easy money. We learned the hard way by doing it ourselves. The love comes from the labor you put into to it. Here are six essential ingredients to crowdfunding a restaurant project based on our extensive experience in the field.