Financing your franchise dream

One of the premier reasons that people put forward for not starting an often well-researched franchise was their perceived lack of ability to finance the venture. Further investigation often showed that few of the would-be entrepreneurs had really explored all of the financing options available in today’s marketplace.

5. Think outside the box

Keep in mind that there are various ways to approach franchise financing. It is not a one-size-fits-all approach. For example, you may be in a jurisdiction where your pension funds can be used as a financing vehicle. This effectively means that you are self-financing your franchise.

Another alternative might be to consider forming a partnership to share initial set-up costs, or have a partner come in as the financial arm of the business.

Sometimes buying an existing franchise rather than a start-up in a new location can provide substantial financing benefits – therefore always consult with the franchisor regarding resale opportunities.

Whatever solution you decide upon, be sure to explore different financing avenues to find the right plan and options to suit your circumstances.The most important thing to remember when financing a franchise is that you are not alone. There are many ways in which you can receive advice, support and guidance, usually at no cost throughout the process.

Make sure you avail yourself of this to take the stress out of the prospect of financing a franchise that will enable you to start sooner rather than later.