10 money words you must know when financing your restaurant or bar project.
Raising investment is a crucial step in getting your restaurant or bar project going.
In your quest for money, you will encounter angel investors, banks and equity fund managers who will not refrain from using their financial lingo.
Make sure you do a little homework, so you don’t blow your chances to secure your investment.
Why not start with these 10 words
Investment rounds are the rounds of funding that restaurant projects go through when they are raising money.
Seed money is the first round of money a new restaurant business receives from an investor.
Love money is money lent out by friends or family to start the initial operations of a restaurant.
Private equity involves funds and investors that directly invest in a restaurant business. A provider of private equity will maintain an ownership interest in a restaurant.
CAPEX is short for “Capital Expenditure”. This is the money a restaurant uses to acquire, upgrade, and maintain physical assets such as property and equipment.
Cash flow is the money moving in and out of a restaurant business within a given month.
ROI stands for “Return on Investment”. This is a ratio between the net profit and cost of an investment a restaurant makes. ROI identifies the total growth on an investment.
IRR stands for Internal Rate of Return. This is a measure of an investment's rate of return. IRR identifies the annual growth rate of return.
IP stands for Intellectual Property. This is a term which relates to brand ownership. IP is any product created by the human mind that the law protects from unauthorized use by others.
Stock options are provided by an employer to their employees. An employer gives their employees the right to purchase a certain number of shares of company stock at a pre-set price over a certain period of time.
Get the right amount of financial knowledge.
No saying you need to spend hours trying to become a financial expert BUT remember you are asking someone to invest in you and trust you with their money…
Aware Hospitality Team