Starting brand new, buying a preexisting or go through a franchise?

[Angela H.]

I would like to open a food & beverage establishment, however I am not sure which direction would be best for me. I don't have much money to open a brand new facility and it feels like the chances of getting enough money are very slim. I do have good credit which I would think will make it easier to get a loan. With a franchise, I noticed most require assets and thing of that nature which I don't have. Then there is buying a preexisting business which seems like it would be easier to buy or at least cheaper. However, I know that I would have to be on the look out for debts that the previous owner may be in.
I am experienced in the food and beverage field and love it. If anyone could offer some advice I would greatly appreciate.

[Freelancier]

My business experience -- as opposed to food/beverage experience -- tells me that if you don't have a deep well of cash available, owning a business with significant overhead -- the location costs + equipment costs + staff costs -- has very high personal risks involved and you should find another path.

Consider catering? Lower start-up costs, lower staffing costs, lower equipment costs, decent enough profits and maybe the possibility of meeting someone who wants to bankroll your first restaurant.

[Angela H.]

At one point I was thinking about starting something like a food truck since I don't have the needed cash flow. Thank you for the tip.

[Freelancier]

A food truck definitely has lower costs involved than a fixed-space restaurant. Price out what it would take to lease and set up a truck, but before committing to the food truck costs, make sure you have a legal high-traffic location (or locations if you want to have it in one place for lunch and another for dinner) secured -- including all permits that you'll need to park and operate at that location. Without those, you just have a truck sitting in your driveway or being towed by the police.