While owning a restaurant seems cool and trendy, the reality is restaurant industry is rough. Every month new restaurants showed up and closed down without mercy. Having a great passion for food along with skill and opportunity are not enough to keep your restaurant business to survive in the competition. You need to make sure you have enough working capital for your daily operations.

Day to day expenses for restaurant business usually involves payroll, food supplies, rental fee, repair and maintenance of assets such as kitchen equipment, plumbing, roof or other facilities. Restaurateurs must prepare enough capital to cover these expenses even when the sales figure is low. This is why many restaurants failed in their first year of business, because they didn’t have enough working capital to cover their basic operational cost while bearing the negative sales performance.

If your restaurant managed to get through this stage and survived from downturns, that means your business has a chance of success in the industry. When you’re at the this stage, you need to start thinking of growing your restaurant. Usually, this is the time for restaurateurs to decide which funding option would be best for their business.

Yet, before deciding on the best ways to fund your restaurant, you have to understand that timing is important when you plan to expand your restaurant business. You need to be sure that the business plan is in line with your financial situation, consumer trends and the economy. On top of that, you also need to make sure that your business is ready to grow.

There are several signs to see if your restaurant is ready to grow:

1. Increased number of customers
When the number of RSVP guests is higher than the walk-in customers, it means your business has gained loyal customers and built its reputation. If you start having queues outside your restaurant due to lack of seating space, it’s high time for you to think about expansion. Whether it’s expanding restaurant size, or adding more staff, these indicators are signs that your business is ready to grow.

2. Additions in menu and services
Due to popular demands of your loyal customers, you are now serving breakfast menu along with the existing lunch and dinner menu. You also added more items into your bar so your customers can enjoy “Happy Hour” time in your restaurant. As a restaurateur, you must be responsive to what your loyal customer’s want. Adding new menus or services into your restaurant requires bigger working capital to support the growth of your business.

3. Healthy cash flow
One major sign that your restaurant is ready to grow is the healthy cash flow your business have. When you are able to keep a steady cash flow for your periodic expenses, that means your restaurant has gained enough loyal customers and built your brand among the competitors. Healthy cash flow will help you get more fund for your expansion plan, because it gives trust for lenders that you will be able to make payments.

4. Have a good business plan
Your next plan for your restaurant is to add a semi outdoor area so your guests can dine while enjoying the view from the park across your restaurant. Getting a house DJ is another plan to bring younger customers to your door, so they can enjoy dancing night out at your restaurant after hours. This means you have to improve  your sound system equipment, hire a local known DJ, and  set a dance area in your restaurant. These business plan will help your restaurant to grow bigger than you are before.

When you know that your restaurant is ready for bigger plan, it’s time for you to find the right funding partner to finance these plans. Since traditional banks are not keen in giving loans for restaurateurs, your best choice for funding is a Merchant Cash Advance.

Merchant cash advance is ideal for your restaurant’s funding because it doesn’t need you to provide lengthy paperwork, it’s easy approval and you get the money within 48 hours after you apply.