For many people who want to own their own business, franchising presents a wealth of opportunities. While franchising comes with the building blocks and a road map that can lead to success, these alone won’t guarantee that you’ll be able to get on the fast track to building wealth. First and foremost, you need to identify your goals, review your financial portfolio, and determine if you need to obtain financing in order to raise the capital you need in order to invest in a franchise. And if you’re unsure of how to do this, we’re here to provide some much-sought-after information.
Acquiring a loan is one of the most common ways of gathering capital. Loans can come from a variety of sources. One of the best resources at your disposal is the Small Business Administration. This organization is eager to help those who want to be small business owners. Aside from this avenue, there are banks and other financial institutions, such as credit unions, but these require a favorable credit rating and history. At today’s interest rates, SBA loans can also be challenging.
Another method of obtaining funding is to go into the franchising world with a small party of investors. These are people who join together to fund some or all of the total investment and, in return, receive a portion of the profits when the business breaks even. Finding investors can sometimes be difficult, but having a good sales pitch can generate interest.
If a well-established company currently employs you, there’s a very good chance that you contribute to a 401K. Depending on how much you’ve put into your 401k, you may be able to borrow against the account. If you have a 401k from a previous employer that has been turned over, that is another option. Some business owners sell or borrow personal assets such as homes, cars, or other personal assets to obtain financing for their first business. It can be a difficult choice depending on your circumstances but it can also be the opportunity to strike out on your own. If you already own a home, you might be able to borrow against the mortgage to obtain financing this way.
The business world provides a lot of opportunities. Financing is a very important part of the equation; in fact, it’s an essential first step toward determining if franchising is the right path to financial independence for you. If you’re thinking about entering franchising but are unsure of where to start, contact FranSave; we've helped many achieve their dreams, and we can do the same for you. Visit us at FranSave.com to get started.
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your jurisdiction. Franchise offerings are made by Franchise Disclosure Document only.