Hello. My name is brian and I am a first time poster. Here is my situation. I am 51 years old,retired and I want to fulfill a longtime dream of owning my own cafe.I am very motivated and I am always the micromanager wherever I work.I love to cook and bake and I am told that I am good at it.I hear that I should be a cook a lot.I don't want to cook in a busy restuarant. I would rather have a small place where I could cook or bake if I want.I want to buy an established cafe or coffee shop with coffee and desserts and maybe sandwiches.I would buy from the past owners vendors and slowly add my own food I make.Just to start out slow and make enough to live on for now.I haven't started looking or a place yet.I want to make sure I know what to expect before I go that far. My question is regarding financing. I do not have much money saved up but I do have around 100,000 to 150,000 in equity from my home. Is it possible to get a loan using home equity? I am hoping to do all of this for under 100,000. Is this a realistic figure? I am very driven in all that I do and I am somewhat anal about order.I am also used to working 12 hour days and weekends so that part I can handle.

I think your figures are realistic. And yes, you can use your home equity for start up funds. You can also apply for an SBA backed loan. They require that you come to the table with 30% of your own money (the home quity is good). You will also likely need to put your house up as collateral.

However, that in itself will not get you the loan. Experience in the industry is also a big factor. The fact that you love to cook and bake won't mean anything to the bank if you don't have actual experience running a restaraunt or cafe. Then again, if you can buy an existing business that too will make a difference. An existing (hopefully successful) business stands a much better chance than a new start up.

Go for it! Write you business plan first. You must not approach a lender without your completed business plan. Look below for help with that:

http://smallbusinessstartup.biz/plan/

Thank you both for your input. I appreciate the information.

Brian