Purchasing a new franchise? Consider your financing options.

Posted: 3/21/2016 12:53 PM by Interim HealthCare
Entering into a franchise arrangement is somewhat like starting your own business. It is a decision that needs to be taken seriously since it involves a considerable investment.&nbsp; Part of the decision making process includes understanding the level of investment and then evaluating your financial status to see if you need to secure additional funding.&nbsp;<br />
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Today, there are many franchise concepts for all price ranges.&nbsp; There are home-based franchises that usually require a minimal investment all the way up to large brick and mortar franchises that require a million dollars or more.&nbsp;<br />
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Here are some steps you need to take as you secure financing for your new business:<br />
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<li>Talk to your franchisor before searching for outside financing.</li>
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<li>Consider financing options including friends and family, reach out to them.</li>
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<li>Seek out lenders that understand not just small business but franchising as well.</li>
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<li>Be upfront with lenders and be prepared to explain every detail.</li>
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<li>If you lack liquidity, consider finding a partner with money.</li>
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<li>Consider equipment leasing to conserve start-up capital and improve the appearance of your balance sheet.</li>
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<li>Keep debts and expenses to a minimum. Many business owners take on too much debt, forgetting that cash flow must pay that debt.</li>
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<li>Avoid dipping into your retirement money or your kids&#39; college funds.</li>
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Any startup, even a franchise, is a risk.&nbsp; You need to be prudent and resourceful as you move forward.<br />
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<ul>
<li><strong><em>Source:</em></strong> <em>Entrepreneur</em>&#39;s <em>StartUps</em> magazine.</li>
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