If money were no issue, what would you do in life? What kind of job would you have? How would you live? What would you do in your free time? What type of expenses would you have? For many of us, this is a fun conversation starter, but not a real possibility. That’s because, no matter how big we dream, money is still an issue. In fact, it drives much of our days. We work in order to make money, and then we use money to buy things we want and that we need.
And when it comes to making big changes, those, too, are fueled by dollars. The way that we buy new houses, cars, or start a new business – those too are all determined by cash flow. You need enough of it to get what you need and/or want. So when big purchases come into play, such as a franchising business, it’s easy to see why folks can become stressed or overwhelmed at large dollar signs.
But that hesitation also might be misplaced.
Did you know there are many ways to fund your next business venture? When looking to start or purchase a franchise location, there are many financial options. New or potential franchisees can opt for a loan. They can work with investors, they can use their own possessions as collateral, they can borrow money that they already have stored away (for instance in retirement accounts or savings), and they can find others who will put stock into their ideas. Whether or not those people “have a say” in daily decisions is up to individual relationships. The point is, however, that there many ways to go about finding dollars that can help you get your franchise up and off the ground.
How to Find Franchise Funding
Before you ever get started, you likely want to explore your options for getting your franchise started. While we are here to help every step of the way, there are many other resources, too.
Talk with your potential franchising brand. What do they recommend for obtaining necessary funds? Do they have a lender of choice or offer financing themselves? You should also talk with your spouse or financial partner, as well as family members who might be involved in your finances.
Besides, you never know who might be looking for an investment opportunity. Mention your finance process – without specifics – to close members and see if they offer any help toward your goals. Don’t push the point, of course, but you never know who might be ready to help.
Even with no expectations for dollars from others, be upfront about what your plans are. While you might not want to go into specifics, you can get great advice from those around you. Financial advisors, bankers, and accountants are also good resources. If you have any or all of the above as trusted contacts, consider talking with them to get some insight about the industry you’re headed into, what they think is a good first step, and more. Of course you don’t have to follow through on this advice, but it can be a good place to gather information in going forward with your franchise business.
Depending on where you live, there might be options for reduced rate loans, grants, or stipends. Many communities offer incentives for new business owners, which can help ease the burden of starting out. Talk to your local Chamber of Commerce or city officials to see what might exist in your area and how you can apply. Take note that this is often available in rural areas or parts of the town that are less populated. Check to see if you could qualify for additional funding; even a small stipend could make a huge difference in how you’re able to open or run your upcoming business.
Find a Way to Do What you Love
No matter your situation, there are plenty of opportunities to find funding for your franchise.
Explore your options, talk to others, and find a good that will work for your finances, as well as your franchising brand.