Starting a restraunt buisness.?

Question

my granpa is a very hard working man. the owner of his company (his boss) said that they were going to move the company to a different location. instead, the "boss" decided to close down his company. by the way it's an R.V. company called dan gamell (how ever you spell it) rockland R.V.s . Now every one is currently unemployed. Now, there's a man who worked at dan gamel (and a past company owner) who was thinking of starting a restraunt and asked my granpa to be his right hand man. he put in 70,000 dollars into the restraunt and wants my granpa to invest 70,000 dollars into the restraunt aswell. my granpa's not the richest man and being unemployed is horrible for him (he's never been unemployed). should he invest 70,000 dollars into the restraunt.??

p.s. the company is closing tommorow june/26 / 08 and he's meeting the guy tommorow for lunch to descuss the restraunt buissness.

any ideas on what he should do?

Answer 1

the economy does not seem strong now.  there will probably be a shake out period where a lot of businesses will close, and during that time it would be best, but that time is not now.  food prices are high, and gas is still breaking new highs which will be passed on to food costs.

I am a high risk taker, and I would not open a business now.

Answer 2

Absolutely not until a business plan is written and a lawyer is consulted.  This is a terrible time to open a business, and the restaurant business is the hardest to be successful in..most fail within a 1 1/2.  There needs to be some thought as to what it is going to cost to open this, run it, pay for licenses, make sure all regulations are met (health/safety, taxes, employee wages, food shipment, kitchen set up, etc. etc.).  This is not as simple as one would think.    Your grandfather is going to lose 70k very quickly if he walks into this without consulting a lawyer that is familiar with business start ups.  

Lots of info at sba.gov...and also a list off that page of SCORE counselors who assist in writing business plans, and making you aware of risks, regulations, etc......

Answer 3

Good video for starting restaurant business

http://www.kse01.com/restaurant_business...