Ways to Obtain Financing to Buy a Franchise
Ways to Obtain Financing to Buy a Franchise
• Dip into your savings. If you have been working for long and have quite a good amount of money in the bank, use a portion of it to finance your franchise business. But don’t use all your savings, because besides the start-up cost, there will be the cost of running the business till it starts making profits. Also saving for emergencies is also a must. But if your partner is working, you can surely take the risk of investing the money in starting a franchise.
• Use credit-card loans. The founders of Google did that and look where they are now! But there are certain things you need to remember in this regard. First, you must have a decent credit score. Also make sure you have enough provision to pay the monthly payments and won’t default.
• Ask relatives. Many of us hesitate to do that because of the fear of losing a friend or relative or just for the fear of being looked down upon. But both of the fears are baseless; if you proceed in a professional manner and promise them in writing to pay within a stipulated time-period, then there won’t be any question of refusal. And if you are genuinely interested in the business and sincere about your plans, asking for help won’t demean you. Remember that it’s always better to ask from the relatives than from the strangers.
• Go for bank loans. It’s the traditional method of getting money, but sometimes getting bank-loans becomes difficult for individuals who are new to the business. In that case, it’s better if you go for SBA loans, especially if you are starting a franchise of small business franchise opportunity. CIT Small Business Lending is one of many companies that offers SBA loans.
• Consider borrowing against your 401(k) or retirement funds. Companies like Guidant Financial Services offer programs to do just that.
These are some of the common methods of getting financing to make your dream of buying a franchise come true. Top franchises help their franchisees in getting finance, so if you are buying such a franchise, half of your work is done.
Ways to Obtain Financing to Buy a Franchise - To learn more about this author, visit Michael Hemenway's Website.
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Remember the famous shouting match between Tom Cruise’s character and Cuba Gooding Jr.’s character in the movie “Jerry McGuire”, which culminated in the phrase, “Show me the money”? That is exactly what your franchisor is going to tell you when you approach the concept in response to its franchise business for sale offers. So, when you are in the market to buy a franchise, first figure out the ways to obtain the money required for the business. To help you in this situation, here are some pointers:
• Dip into your savings. If you have been working for long and have quite a good amount of money in the bank, use a portion of it to finance your franchise business. But don’t use all your savings, because besides the start-up cost, there will be the cost of running the business till it starts making profits. Also saving for emergencies is also a must. But if your partner is working, you can surely take the risk of investing the money in starting a franchise.
• Use credit-card loans. The founders of Google did that and look where they are now! But there are certain things you need to remember in this regard. First, you must have a decent credit score. Also make sure you have enough provision to pay the monthly payments and won’t default.
• Ask relatives. Many of us hesitate to do that because of the fear of losing a friend or relative or just for the fear of being looked down upon. But both of the fears are baseless; if you proceed in a professional manner and promise them in writing to pay within a stipulated time-period, then there won’t be any question of refusal. And if you are genuinely interested in the business and sincere about your plans, asking for help won’t demean you. Remember that it’s always better to ask from the relatives than from the strangers.
• Go for bank loans. It’s the traditional method of getting money, but sometimes getting bank-loans becomes difficult for individuals who are new to the business. In that case, it’s better if you go for SBA loans, especially if you are starting a franchise of small business franchise opportunity. CIT Small Business Lending is one of many companies that offers SBA loans.
• Consider borrowing against your 401(k) or retirement funds. Companies like Guidant Financial Services offer programs to do just that.
These are some of the common methods of getting financing to make your dream of buying a franchise come true. Top franchises help their franchisees in getting finance, so if you are buying such a franchise, half of your work is done.
Ways to Obtain Financing to Buy a Franchise - To learn more about this author, visit Michael Hemenway's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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