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By: Ken Gooz
Most emerging restaurant owners in the food-service-restaurant industry aspire of expanding their business by entering new and unidentified markets. It is a known fact that opening a restaurant is an extremely costly affair and those who wish to carve a niche for themselves must invest a significant amount of money to fuel their expansion dreams. However, emerging restaurant concepts may not have ready availability of funds to expand their business. Taking business loans from banks only mean that they have to pay exorbitant rates of interest for the principal sum borrowed. But, it is not the end of the road for them. Nor do they need to wait for years to amass the sufficient amount of capital to fund their restaurant expansion. Thanks to venture capitalists, ready finance can be availed quite easily and with minimum hassles! In fact, there are many venture capital restaurant that boast of very healthy P&Ls and balance sheets that effectively create a win-win situation for both the owner as well as the venture capitalist who invested in the restaurant concept.
Typically, venture capitalists invest in emerging restaurant concept with huge growth potential. Venture capital restaurants attract capital in the form of equity financing, for a long investment period. While this allows the emerging restaurant concept to grow with continuous flow of capital, the venture capitalists can reap secure benefits as these restaurants continue to become popular and attract repeat sales.
There are several factors that motivate private equity firms to invest in successful venture capital restaurants. To begin with, these restaurants are highly growth oriented and can produce great returns on investment. They are completely secure and make good investment targets as compared to other businesses. Good restaurants that are popular for their signature dishes, quick service and low-priced menus always thrive, even in the bleakest financial times. Plus, they are everywhere. Unlike other businesses that are more technology driven, venture capital restaurants are fairly easy to operate and control. Most importantly, they have every low barriers to entry. These factors, together with the fact that these venture capital restaurants have high growth expectancy, provide venture investors with the best exit.
Venture capital has been proven to be one of the best restaurant marketing strategies, especially in tough fiscal times. Plus, it has also been found to be quite beneficial for successful restaurant concepts who aim to expand their business as well as for rising stars in the restaurant business with substantial growth potential.
Author Resource:->??The author of this article is closely associated with the organization and is an experienced writer with expertise in writing about restaurant consultants, restaurant business london U.K., restaurant marketing plan and restaurant branding.
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