New York, NY – Chef Russell Jackson, renowned for his Michelin-star nominated Harlem restaurant Reverence, recently shared his journey in securing funding for his fine-dining business. Featured in a Yahoo Finance video series, The Big Idea, Jackson’s story offers valuable insights into the challenges and strategies of financing in the restaurant industry, a sector employing over 15.5 million people in the U.S., according to the National Restaurant Association.
Jackson’s narrative is one of determination and resourcefulness, showcasing his path from national TV competitions to establishing a unique culinary destination in Harlem’s Strivers’ Row. The discussion with Elizabeth Gore, co-founder and president of Hello Alice, emphasized three key funding strategies.
Firstly, Jackson advises against relying solely on personal networks for initial capital. While he initially financed his venture through friends and family, he suggests exploring other avenues first. Secondly, Jackson highlights the complexities of partnering with private equity investors, noting the potential loss of business control despite the financial benefits. Lastly, he advocates for pursuing loans and grants. He utilized a matching loan from the U.S. Small Business Administration, specifically recommending the SBA 7(a) loan and emphasizing the importance of maintaining a credit score in the 600s or higher.
Gore, through Hello Alice, has connected numerous entrepreneurs to small-business grants, which she describes as an underutilized resource, especially beneficial for women, people of color, and underserved communities. Despite Jackson’s decision to place Reverence on hiatus, his insights remain crucial for aspiring business owners across various sectors.
For those looking to start a business, Jackson’s advice is clear: explore all funding options and remain persistent.
See the full story in finance.yahoo.com.
