With so many Americans losing their jobs due to companies either closing or down sizing more people than ever are looking to start their own business. One of the first ideas that come to mind is why not start a franchise in your home town. Before you even start to look for financing I suggest you do your homework and look into all of the available franchises and decide which one would be best for you and what the start up costs would be,every franchise is different so before you go look for the money check to see what you will need.
First, now you have chosen the franchise you are interested in you must check to see what the exact fees you will need to open your business. You want to see if their will be advertising fees that the franchiser charges you many people don’t realize that this occurs. Also and very important you must look into royalty fees. These vary from franchise to franchise.
Second, Does the franchiser you have chosen provide any financing. Most franchisers don’t provide any, but you will be surprised that a few do, such as Subway. Southland Corporation 7-Eleven will help you with inventory, accounts receivable and payroll. You may want to look into these franchises if they interest you.
Third, if you are fortunate enough to have great credit you may want to go the bank. Remember that banks today are very tight with the money they lend. Some banks may give you a second loan on your house. Before you do such a think think hard.
Fourth doing your homework is very important when you think franchise. You may want to check out the Small Business Administration’s franchise registry. The SBA can rduce the risk to banks for certain franchises. You may also want to check if the franchise you have chosen has some affiliation with some loan program. Also if you are a woman there are many programs today loaning money to women who want to start their own businesses.
Fifth, as hard as it may be to ask see if there any family member who would like to be your partner or lend you money. If you don’t ask you will never know.
Sixth, you may want to one of the may want to go to one of the many franchise brokers out there. They are familiar with companies and venture capitalists that may want to get involved with you.
Seventh, choose a franchise that is more affordable they run the gambit of start up cost. Perhaps it may suit your budget better to look at a newer less established franchise. If you want to make a whole lot of money from the start it will cost you more money. Many franchises have began as start ups and done very well.
Lastly, and I only suggest this after much thought and advice from your financial adviser. You may want to look at your retirement account or IRA. Just remember this can be very risky and done only after a lot of thought.