Reader: If you're not ready to raise money privately, you're not ready to open a restaurant

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If an Ohio man can raise $44,000 through Kickstarter to make potato salad, is it unreasonable for the owners of Latke Love to think they can resurrect the eatery through crowdfunding? After closing their Park Hill spot in May, Steve and Tina Shander and Steve's sister, Dana, just launched an Indiegogo campaign titled "Latke Love Needs Your Help To Find A New Home." Their goal is to raise $100,000 within forty days.

See also: Latke Love needs some Denver love to find new location

But Business isn't buying, and says:

Seriously, if you're going to be a real business, learn to get a loan if you do not have upfront capital for your start-up. Try the banks. And if you do not qualify, try micro loans. And if you don't qualify for that either, last resort, try borrowing money from friends and family -- write IOUs.

Begging for money from the public is lame. You're not a non-profit organization/charity, therefore you shouldn't be trying to get 'free money' from the public. And you don't want that either because you'll then have a lot to prove and the immense pressure to perform.

If you are not able to raise money privately, then you're not ready to open your own restaurant. $100K is not a small sum.

What do you think of crowdfunding for restaurants? Food trucks? Businesses in general? Would you donate to Latke Love? To a potato salad campaign?


Location Info

Latke Love - CLOSED

5151 E. 28th Ave., Denver, CO

Category: General


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8 comments
lorenzo463
lorenzo463

If someone wants to buy the building where Latke Love used to be and turn it into a beer garden or brewery, this neighbor might participate in your crowdfunding campaign.    

christinealling
christinealling

I think that, post-recession, companies have to find new ways to raise capital.  People who are judging them are the lame ones.  If you don't like it, don't contribute.  It's about time people stopped relying on "the system" and started making things happen.  What if African Americans had this attitude when they were being denied educations and loans?  These people who are sitting in judgement of them for fundraising are, well, judgemental.  Lack of empathy and compassion for others is the most prevalent and harmful malady our society faces.  It's sad that these people are sitting in judgement of someone just trying to fulfill their dreams.  

barslinger
barslinger

Get a clue people it is rare for a bank to lend on not established non cash-flowing restaurants.  Only established restaurants, showing cash-flow for multiple years will get a shot with a bank.  Latke is a start-up business at this point and rare for banks to lend on.  Credit unions and small community banks may be the best shot.  Maybe with the crowd funding they will have enough cash to convince a bank to lend additional capital.

davebarnes
davebarnes topcommenter

I agree.

Call your banker.

denvergregg
denvergregg

Soliciting individuals and families directly isn't nearly so bad as taking governmental funds for business relocation and development. It's at least honest and transparent and isn't correlated with graft and the maintenance of ever-swelling legions of parasitic kleptocrats.

barslinger
barslinger

@christinealling  The People to get a clue in my previous post was not meant at the Shander's but at comments judging the unconventional sources or hey just go to the bank.  I agree with your comments and defending the Shander's that you can't just walk up to the bank, fill out the paperwork and receive $$.

barslinger
barslinger

@davebarnes  Dave you make it sound easy have you went to a bank as a restaurant start up and tried to get funding?

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