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Where Can I Get Start Up Money For A Business

Written by: Candice Clem

Article Overview: Starting a new business can be tough, but if you have the drive and ambition, you can be your own boss and make great money running your own business. Now the hard part: where on earth are you going to find the money to start your business?

Where Can I Get Start Up Money For A Business

Particularly in our current economy, finding the money to get started can be the most difficult part of starting a small business. Small business loans are more difficult to obtain than ever, many private investors are much more scrutinizing about how to lend their money, and many potential small business owners are especially tentative about investing their own money to start even a humble home based business. Fortunately, if you know where to look and if you have the right business proposal, it is still possible to start a home business or small business of your own, even without spending any of your money to get the business off the ground. Franchises offer one of the best ways to start a small business in this economy, due to their proven business plans and strong track record.Additionally, many lending institutions are far more likely to lend startup cash to franchise businesses, because a franchise business opportunity offers the most financial security of just about any type of small business startup. Here’s a look at some of the best ways to finance your franchise business, as well as some of the best candidates for a new startup business in a sluggish economy.

Home Based Franchises
Probably one of the most accessible types of franchises, home based businesses offer all of the benefits of a well-established franchise business, but retain all of the tax incentives and cost benefits of running a business from the comfort of your own home. When it comes to the cost associated with starting a home based business, the good news is that most home business franchises cost less than $10,000 and have a modular quality that allows the franchisee to start with one unit and then continue expanding as the market or the drive of the franchisee warrants. Financing options can be as easy as connecting with the franchisor, who will most likely offer at least partial financing, but will often work best by gathering a few investors together and each pitching in 10%-30%. If a home based franchise sounds like a good option for you, check out a business for sale with Dr. Vinyl. This home based franchise is the world leader in automotive cosmetic and aftermarket services. With more than 25 years of experience, this home based business specializes in restoration and repair of leather, hard plastics, fabric, windshields and, of course, vinyl. No experience is required and Dr. Vinyl will provide you with all the necessary training, ongoing support and a strong track record and business plan that will aid you immensely in finding appropriate financing.

Retail Small Businesses
A more traditional picture of a franchise is a retail business, and retail small business franchises come in all shapes and sizes, with a huge variety of niche products and retail services. These types of franchises will generally require a larger investment than home based businesses, so a larger group of investors or a small business loan will be your best bets for financing. The beauty of a retail small business franchise, when it comes to fund-raising, is that small business franchises have a 90% higher survival rate after the 5 year mark than the average small business. The SBA also offers plenty of financial services to help small businesses get off the ground, and will provide you with referrals to banks and investors that will make the fund-raising process much easier. Rapid Refill is a great option for a retail small business, and the market is only growing as time goes by. Inkjet and laser printers can be found in literally every office and home study, and one thing that each of those printers have in common is that they all need plenty of ink. The trend in the printer industry lately has been to drastically slash the cost of a printer and jack up the price of ink. In some situations, it’s cheaper to buy a new printer that comes loaded with ink than to replace all of the cartridges needed to get your printer operational again. This has created a niche market of ink refills, and Rapid Refill has just the business to fill this need. Providing ink refills at a fraction of the cost of replacing ink, Rapid Refill can save small businesses hundreds of dollars each month, and their precision refilling system perfectly reproduces the quality of the original cartridges.

High Capital Franchises
This final category is the type of franchise that requires the greatest initial investment, but can also provide the highest rate of return on your investment. Due to the high return on these franchises, investors will be more than likely to want to grant you financing, especially if you choose a franchise with good brand name recognition. Take, for example, a fast-food franchise like Arby’s. If you’ve driven more than 10 miles on any given stretch of interstate, you’ve undoubtedly seen an Arby’s restaurant, and this brand recognition will not only earn you an instant client base, but will also make your life a whole lot easier when it comes to raising funds. With an initial investment as low as $500k, you will most likely need to get a bank loan to finance an Arby’s restaurant. This may be a scary prospect, considering the recent lending freeze of 2008, but consider that the average cost of a condo or home in a major city costs about the same price, and the risk for a homeowner defaulting on a high priced home mortgage is much higher than a group of investors with a nationally recognized restaurant chain. Rest assured, banks are still looking to lend money, and lending to a fast-food restaurant (one of the only industries that reported growth during the recession) will be a welcome change for most lenders.

Whether you choose a home based business, a retail small business franchise or a full-scale franchise chain such as a restaurant, franchising is your best bet to obtain financing in the current economy. Additionally, franchises are one of the few types of business that have shown growth in the past year and continually outperform the average small business startup in any economy. Take a closer look at any of the franchises that have peaked your interest, and if you haven’t yet found the franchise that seems right for you, keep looking at the thousands of franchise opportunities currently available.

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Article Tags: business franchises, business proposal, finding the money, franchise business opportunity, franchise businesses, franchisee, franchisor, home based franchise, home based franchises, lending institutions, private investors, running a business, sluggish economy, small business loans, small business owners, small business startup, starting a small business, startup business, startup cash, tax incentives



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