Rockland 70
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starting a restraunt buisness.?
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?
Your grandpa needs to be really careful. He should NEVER invest in anything until he has all the facts, and he should certainly never invest without a well written business plan, a contract drawn up by a lawyer, and good advice by local business professionals.
Restaurants are very volatile businesses. Does your grandpa have experience in operating a restaurant? Does his potential partner? If not, will they be consulting someone who is an expert in the industry?
And what does he know about this potential partner? A business partnership is an important relationship - if he doesn't know this guy he will need to spend some time determining if they are a good fit for each other. He definitely should not rush into a business relationship and invest 70k with a guy he knows nothing about.
There are a thousand factors that go into the success or failure of a restaurant, and your grandpa will want to make sure that he has done his due dilligence when it comes to research, support, and covering his bases.
Having the lunch meeting tomorrow is a good first step, but he should be cautious, ask a lot of questions, and make sure he is taking all of the proper steps.
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