Advice for Finding Investors

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Viewing 18 posts - 1 through 18 (of 18 total)
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  • #9805
    Avatar photoFederico
    Participant

    Hello,

    I want open an italian bar where i can sell coffee, some traditional food, wine, sandwiches, etc…

    With a simple business plan, where I can find investors?

    Thank you and have a nice day!

    #24620
    Avatar photoVincent
    Participant

    http://www.kickstarter.com

    Chinese investors? Get a nice business card and visit a lot of network events, I’d say.

    #24622
    Avatar photoFederico
    Participant

    Thank you V

    #24624
    Avatar photoMichael M
    Participant

    How much investment would you need? Maybe I know someone who could help.

    #24628
    Avatar photoFederico
    Participant

    Really thank you Michael i’m preparing a simple bussiness plan, it’s the first time for me.

    How much you think I need for the startup? I know that i must take care of many factors like location, size, etc…

    #24630
    Avatar photoJerryS
    Participant

    Tons of money. All resturant owners had to dish out over 100-250k rmb just to have the keys open given to them (transfer fee). There’s this french cafe, transfer fee was about 250k rmb.

    #24632
    Avatar photoFederico
    Participant

    So for a small bar/pub maybe between 50k or 100k… it’s realistic?

    #24634
    Avatar photoMichael M
    Participant

    I don’t claim to be an expert but these are my two cents.

    Actually for a lot of Chinese business people they don’t really care about the transfer fee, they care about the rent.

    1) Because the transfer fee is a fixed one off payment, and you will get the transfer fee back (often even higher) when you leave the property.

    2) Because rent is ongoing and part of your overhead costs, so the lower rent is the lower your overhead and greater potential profit.

    Also I think most importantly here is that transfer costs are high in the most sought after locations and areas and properties which are already developed. Transfer fees are also higher for properties which are fully decorated or have expensive kitchens or other specialized modifications made by previous tenants.

    It seems like Federico just wants to open a small cafe with some simple food and drinks, this could be done in a more basic location than would be needed if opening a full restaurant and also require less space, much less require a fully fitted restaurant to take over from. A small cafe could also be more flexible about the location, and choose an area with cheaper rents and low transfer fees to set up the cafe.

    For a much lower investment I think a niche and quality small Italian cafe would attract a loyal customer base, even in a lesser location.

    BTW, Federico, how is the hostel going?

    #24637
    Avatar photoFederico
    Participant

    I understand, I must prepare a complete business plan for check first investment that i need… maybe for a budget around 50k rmb it’s more simple find investors… I have many questions, change from to be a worker to a little “Lǎobǎn” need time…

    About guest house we have many chinese customer but not every time like this business provides. I want offer more services but still need a budget.

    Like offer free heating conditioner (that i think it’s normal) but for now I must ask to customer a little fee.

    And HostelWorld.com didn’t give me help, maybe because out of China isn’t holiday time or because there is a lot of competition.

    #24658
    Avatar photoAl the Dead
    Participant

    Well i dunno if that of any help, but: for a quite a large bar/tea house withing the 1st ring road, with quite a crappy location it took 200k tranfer fee, around 150k for refurbishing and another 200k for a initial rent period.

    Since you have what seems to be a small cafe (ya know, like those family chinese restaraunt all around, ya?) this probably be about 4 times less than that if not more.

    All imho, im but a “poor” student here atm 😀 Havent even started to try and examine business possibilities here.

    #24663
    Avatar photoFederico
    Participant

    I checked and it’s normal that between a private rent and business rent, we have a big difference.

    For example I live in a place around 200mq (my house and guesthouse) and rent it’s 4,500rmb; same size for a business use maybe rent is 20,000 rmb.

    So this is the first big difference.

    Sure like you said Alexey I want a little bar/pub like chinese restaurant, but still to be a little expensive for my pocket.

    A friend said to me: first important step it’s make a business plan! if you don’t do this, it’s better that you go to Macao’s casino and you have a better chance of making money!

    #24671
    Avatar photoIan
    Participant

    You could start one of these small home cafe/restaurant places. That could be an option.

    #24674
    Avatar photoFederico
    Participant

    Thank you Ian, this is another way to start…

    #24686
    Avatar photoCharlie
    Keymaster
    Quote:
    You could start one of these small home cafe/restaurant places.

    I think this is a great idea. You see so many restaurants open and close in China, you’re taking a huge risk. You can drastically reduce that risk by testing out your business first before your drop 200k rmb into it.

    I look at what Mike did with Mike’s Pizza Kitchen and to me, that is brilliant. He operated a home-based business at very low risk and spent a few years learning and improving. When the business was stable, profitable, and had proven demand, he opened a restaurant in Tongzilin.

    Because years of groundwork had been laid before the restaurant had even opened, he probably won’t ever have to worry about closing because of a lack of business.

    #24689
    Avatar photoFederico
    Participant

    This is my first idea, take a rent for a “private use” and after offer a service, but this is dangerous?

    #24691
    Avatar photoIan
    Participant

    Speak to the guys at the living room in the soho building or Mike. Maybe they can give you some advice.

    #24692
    Avatar photoCharlie
    Keymaster
    Quote:
    This is my first idea, take a rent for a “private use” and after offer a service, but this is dangerous?

    It’s less dangerous than spending 200k to begin with. Start small and expand your business along with your customer base. A lot of businesses in China throw in everything and then fail because they skipped important steps of developing the business. There are many recent examples but look at the Xiong Mao club – an incredible space by any account, but they skipped multiple steps of building their following and business before opening a gigantic venue that they could not possibly fill on a regular basis. Start small and focus on becoming profitable.

    #24710
    Avatar photoFederico
    Participant

    I believe that small (my idea from the begin) and focus it’s right way, but my question is about governamente rule.

    I know if you take a “private rent” you can’t use this for business. I speak about this problem.

    And if I choose “business rent” price it’s more than double price!

    I haven’t 50.000rmb but it’s possible open a little bar with this money?

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