Franchises are very profitable avenues of business for you to explore. When you buy into a franchise, not only are you cutting the amount of work you have to do as an individual down by a significant amount, you’re also buying into a successful formula, a money making machine, and a business that does everything they can to make sure that you succeed.
Now that sounds a lot better than slaving away for years to perfect a business model, establish a recognized name and product, find or build a space, and acquire all of the legal licenses you need to continue business. With a franchise, some of that is still required, but you’re basically taking somebody else’s hard work that has proven successful, and you’re cashing in. That’s a smart way to business, if there ever was one.
If you’re looking to start a franchise, but you don’t know how you’re going to come up with the money you need, here are ways you can do just that:
Find a Company That Offers Painless Financing
People understand you’re not going to have the kind of money it takes to start a franchise on hand. The beautiful thing is, there are companies out there that will let you finance with your 401(k). You won’t have to pay penalties and you won’t have to worry about paying off a crazy loan with added interest.
Take Out a Loan
If the company you end up choosing to franchise with doesn’t offer financing, you might be forced to turn to the more traditional route of taking out a loan. Don’t fret, just be patient and find the best loan you can. Don’t stop at one loan offer, check out all places that come your way that offer loans. Some might give you a much better interest rate, and some might not even require that you make a payment for a year.
The loan sharks are a business just as much as you are. They offer deals to bring the fish in. Your job as a fish seeking a loan is to not bite until the right hook comes your way.
Get a Partner or Two
Some franchises might have restrictions on how many partners there can be in a single location, but if they don’t, find buddies that you trust, know have great business sense, who have cash just itching to be invested, and go into business with them.
When you broaden the pot, you’re also broadening responsibility. You can all buy in, just make sure that the relationship is going to be one that isn’t volatile from the start, and you’ll be sure to find great success.