In today’s economic climate starting a new business is daunting, even more so with difficult socio-economic factors. With a statistic as high as eight out of every ten new businesses failing it is easy to see why people are wary. To own a business without running the risk of becoming one of the unlucky 80% you should consider buying a franchise.
Financing a Franchise
Start-up business costs are through the roof. Depending on what industry you plan on going into there will be certain additional costs for a variety of permits, locations and products. Generally speaking, you will have to have the capital to fund:
- Location costs
- Loan Repayments
- Employee expenses and wages
- Research expenses
- Licenses and permit fees
And that is just to name a few. With a franchise all expenses that require financing will be comprehensively laid out in a clear and detailed way so that no costs come as a surprise and you are always financially prepared. Not to mention the fact that you will be working on an internationally proven business model.
To finance a franchise will cost you a substantial sum of money, but every cent is documented and you will know exactly what it went towards paying for. Every expense should be recorded and you will see what your payments are funding every step of the way. The framework provided will allow you to easily slot in your organisational style in order to stay on top of things at all times.
If you do not have the capital to finance a franchise you could always consider taking out a loan or entering into a partnership. Because you will be working with a recession-resilient business model and thoroughly tested system (if you choose the right franchise), you will soon make back any money you need to pay back.
Reaping the Benefits When you Buy a Franchise
When you decide to finance a franchise be sure to do so with the intention of buying a franchise that will provide better returns than that of a start-up business. Do your research and don’t enter into any financial agreements lightly. That being said, if you find that the safety net provided by a franchise shows reliability and stability and sets you at ease, go for it!
Franchises will provide training and support because, at the end of the day, if you do well so will they. This mutually beneficial business agreement is a great way to be your own boss without taking on more financial burden than you can bare.
If you are a business-driven individual and enjoy working with people, this is the franchise for you!