Where To Find The Money To Open A Franchise
Media reports have focused on economic and employment shifts, creating a perception that funds are tight for home and business loans. These economic and job shifts have impacted your ability to realize your goals. The American Dream has long included owning a business, working for oneself, and creating financial wealth.
I talk to people all the time (as recently as THIS MORNING) who are Dreamers and Builders and want an Exit Strategy from their jobs. Their bright future is defined by working for themselves rather than working for The Boss, who can pull the rug out from under their dreams at any given time.
But I hear this objection a lot: Hey, I would love to open a franchise business, but I only have $$ this much cash to put into it. I can’t afford to open a franchise business right now.
I’m no financial wizard, but since age 30, I have ALWAYS bargained on my ability to follow a system and make money running a franchise. I started with one Great Clips salon, built into a five-unit asset and sold it for 7 figures. That was 20 years ago! You better believe I am following the same recipe and leveraging the same financial strategies as when I opened my first location in 1993.
Let’s look at what my options were back then and really can be leveraged by you:
Retirement funds can be tapped into.
I’m not saying to use all your retirement money, but there are tax-free legal ways to borrow against your future, especially if retirement isn’t really in your vocabulary.
I would bargain and bet on myself sooner than the stock market if you’re like me. Did you know you can borrow against your equity positions? It’s your money, leverage it!
You’ve been paying your mortgage, and now your asset is worth something. Look into the value of your home and whether your equity is enough to give you a down payment on a business to open a franchise.
I had to work REALLY hard to get my parents to loan me money to expand. They wanted proof that I could repay them because it impacted their retirement plans if I failed. I won, and they got their money back with interest!
Small Business Administration (SBA) loans:
The SBA loves franchising. They have preapproved hundreds of franchise concepts all across the country, in many different industries because franchises are predictably successful to operate.
In-house and/or Third-Party Financing:
Some franchises offer financing for business licenses, fleet equipment, etc. This can be discussed with the franchise companies when we engage with them.
Many companies offer compelling financial advantages for US military veterans.
If you’re qualified for any of these options, let’s talk about a strategy that works for you to open a franchise. You can schedule a call or follow me on LinkedIn. Let’s make YOUR dream of business ownership come true!