When you undertake any large multi-component project, it's very difficult to keep track of every little detail. I'm sitting in the kitchen right now thinking about what has gone on the last few weeks since we signed the lease.
We finished most of the demo of the space, ripping out stinky old carpet and removing ceiling tiles. I've fixed up the upstairs loft area and moved my office in, which is phenomenally great because I can focus on work without being distracted with laundry. I must say working from home is not what you think it is.
The plumber has started digging ditches for the fixtures we will install, but since we have to wait for Department of Health to approve, he had to stop, which means I don't have a toilet. Luckily, the neighbor has been graciously letting me use his, and I've been feeding him cake to keep him on my good side. The plumbing inspector down at the Department of Planning and Development is not being very helpful and is making me fulfil all these super stringint regulations that other places never had to. Like for example, making me put extraneous walls to section off the restroom from the kitchen space, whereas other bakeries are able to use a partition wall, or even just a fan. Of course we want to keep the toilet as far away from the kitchen as possible, however we're running out of room for our equipment. I am sure it will all work out.
The bank has only approved us for $28,000 as a business line of credit, which in 6 months will be almost 12% interest. We need about $75,000 to do our buildout and about $25,000 working capital for the first 6 months. They are basing it on our previous year of gross sales, which was a little lower than average because of my husband's cancer. I mean, we paid our bills and made a profit. Our rent was low so we could definitely afford to reduce our sales so I dont' see what the problem is. I don't know how restaurants get their usual $250,000 in startup costs. I just don't know how to convince the bank that our cash flow projections are conservative. It's bogus. I guess we are going to look into other options. I am trying not to ask my dad because after all, I am 40 now and should be able to handle my own expenses.
2 comments:
Hmm, have you looked into any government small business loans or grants? I have no idea what your ownership status is with your husband, but many people that start a business tend to put it in the wife's name so that they can qualify for a minority owned business grant from the gov. It may not be much, but any little bit helps.
we are filled at 50/50 ownership.
i thought that exact same thing last year.
-john (husband to the chef)
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