Growing your business with the assistance of a bank loan, investor, or a combination of the two, is the logical — and sometimes, the only — option for new businesses. Ideas need capital to get off the ground, and an injection of cash is often the primary catalyst for growth. However, these options don’t come without disadvantages. You may struggle to even be eligible for bank loans, and being tied to ones with higher interest can force you to face the pressure of paying it back within a comfortable time frame to avoid generating additional debt. The immediate reward isn’t always worth the long-term uncertainty.
Fortunately, in the food industry, there’s a lot more room to go about unconventional ways to grow your business. You can be cheeky, take risks in your marketing strategies, and choose daring brand strategies that get people talking. Word of mouth is a massive contributor to growth, and, in the best cases, thinking smart will take you further than working hard.
Regardless, this momentum doesn’t come without financial help. Money is what forms the foundation, after all, but it doesn’t have to come from the traditional avenue of banks or investors. Jonathan Almanzar, co-founder of Chick’nCone, offers his five strategies and philosophies to consider to build a food chain without being tied to traditional sources of income.
Risk and Commit
“Risk and commit means taking a step that can never be recalled,” Almanzar says. “It’s not for the faint of heart,” he mentions, “but it’s a viable option when you can afford the risk of little or no return.” It might mean making a big purchase that will leave you with less of a financial buffer or safety net, or perhaps it’s taking a big gamble on a purchase you believe will boost your business.
“If you want to build something without traditional strings and funding, then you are going to have to take a risk and commit to it,” Almanzar adds. It’s not the same way you commit to a fundraiser or booster club, but rather knowing this is a step that can never be recalled. That isn’t to say this decision should be made out of the blue. Maybe you have seen your biggest growth period ever, or you have confidence that the business is about to see a boom — that’s when you might decide it’s time to take that risk you have been holding out on. “Burn the bridges, burn the ships, there’s no going back,” Almanzar says. In other words, it might just be your best decision yet.
Have Incredible Flexural Strength
This refers to the amount of pressure a body can take before failing. “Growing a food chain takes more than grit; it takes the ability to endure,” Almanzar says. Pressure, demands, possible complete financial ruin, and making the decisions that will place you in harm’s way must be made, he insists, adding that it’s the only way to see growth and avoid plateauing. You might experience peaks and lulls, but ask yourself if the possibility of failing is scarier to you than the prospect of giving this venture just 50 percent.
“One of my favorite sayings from early on was, ‘while we don’t make a lot of money, we spend a lot of money’,” Almanzar says. Sometimes, the jump has to come before you are fully ready for it, and you’ll soon realize that the perfect time never arrives.
Build a Community
“You are going to need a community, not just customers.” Almanzar says that brands should offer ways for the community to take part to help build the brand, and to be a part of something — this might be community fundraisers, GoFundMe, or social media promotion.
When you give your customers a reason to be invested in your brand beyond the food — whether it be through the causes you support, how you supply your goods, or the ways you give back — you are building a community that will be invested in your growth too. By showing your appreciation to this community through rewards, perks, and gestures of gratitude, you will find people who will return and advocate for your success.
Be Incredibly Creative
There are a myriad of ways to fund your business. Bold marketing is the perfect example.
“Decide on a strategy that suits your brand, and if you can’t find one that fits, dream it up. That’s what we did,” Almanzar says. We have seen with the boom of TikTok over the past couple of years that it’s creativity and fun ideas that win people over. The best thing about this strategy is that social media is free. All you need is consistency and creativity. For food chains in particular, it helps to learn how to make your meals look irresistible — a good camera and a witty caption can go a long way. As for what winning creative strategy you will come up with, that’s for your brand to dream up.
Bonus: Be Rich
“There’s an old saying that if you want to make a small fortune in the restaurant industry, start with a large one,” Almanzar quips. If you are lucky enough to have a nest egg, inheritance, or savings for a rainy day, your venture into the food industry might be the perfect time to put it to use.
If you have that money, but you’re in two minds about whether to put everything into your business, Almanzar says it’s better to just do it. “Then the path to building a chain of restaurants without being tied to banks and investors just got exponentially easier.”
Release ID: 272645
