Remote and flexible working options during the pandemic have made many employees around the country think about the potential of starting down a new path. Franchise ownership is just one opportunity that has many excited about the prospect of accumulating wealth and enjoying more work/life balance. But how do you know what type of franchise matches your goals, strengths, and weaknesses?
As 2021 rages on, many who found themselves having to get creative with working restrictions due to the pandemic are anxious to return to life as we knew it. But not all are excited about going back to the daily grind. That has workers around the nation considering the potential of becoming a business owner. Business ownership is a risky proposition. Luckily, opportunities like franchise ownership can help reduce the risk of going at it alone. However, with every new opportunity comes inherent risk. If you are ready to start down the path to franchise ownership, these are the best ways to mitigate your risk.
Starting any business comes with inherent risks, but buying a franchise is less of a risky proposition than starting from scratch with a new concept or idea. When you buy a franchise, you buy into a proven business model where the marketing and branding are done, making it possible to start realizing profits earlier on than starting a business from scratch. The type of franchise you buy dramatically impacts your success and profitability. If you are ready to invest in a franchise, pay heed to these top four mistakes and avoid disaster.
Whether you’ve dreamed of owning your own franchise business for years or have recently decided that you need a new path forward, realize this dream takes funding. If you aren’t sitting on a sizable nest egg, you may need to consider some innovative funding strategies to get your dream of owning a franchise off the ground. Your options include dipping into your retirement funds, applying for a small business loan or a conventional loan, taking out a securities-backed line of credit, or accessing the equity in your home.
How can you decide which of these choices is suitable for you, your family, and your dream? A lot depends on your timeline, your risk tolerance, and your credit history. But there are other factors that you may need to consider as well. Additionally, you may find that a combination of several funding options is best. No matter what route you take to fund your franchise, it’s essential to be realistic about the amount of capital you need. Too many entrepreneurs underestimate the figure necessary to ensure their successful launch, thinking they simply need enough funds to get the business up and running. But the reality is that it often takes much longer than you realize for a new franchise to break even and turn a profit. Until that happens, you may be left unable to make necessary investments in the business or even pay yourself a salary without the proper backing capital.
Read on to learn more about what options are available to help you fund your franchise business.
Has money held you back from realizing your dream of owning your own business? Financing a franchise may not be the impossible task that you think, especially once you understand the ins and outs of finding a franchise that fits your budget and how to apply for financing to make that dream of business ownership a reality.
To start, be sure you know not only the total estimated costs of opening your chosen franchise business but also the realities of the franchise’s revenue generation and how long it typically takes the franchise you have chosen to generate a profit. Armed with this information, you can begin your search for a franchise loan and a franchise that fits your dreams and budget.
As we return to a post-pandemic world, many wonder what the stock market will do and how the recovery period will affect their retirement accounts. Although no one can ever say for sure what the best place to invest money for your future is, there are ways to minimize risk while maximizing asset accumulation.
The problem is that the closer you get to retirement, the less risk you want to assume in your investments. But if you don’t have enough and are inching along, you might have to scale things back after retiring. The good news is that funding a franchise might be your ticket to living more than comfortably during retirement without assuming a significant amount of risk.
When you work for someone else, you are doing just that - working for their wealth accumulation. The only natural way to build personal wealth is by working for yourself, either by starting your own business or buying into a well-established franchise. When you own your own company or franchise, you no longer work for someone else’s financial health - you build your own.
Achieving a comfortable life can be a challenge in today’s economy for workers of all ages and levels. Economic uncertainty can mean anyone is at risk of a layoff, and older workers often struggle to find employment that reflects their experience and salary expectations. But there is an option that puts you in the driver’s seat and can provide a secure future for you and your family — owning a franchise. When you invest in yourself, you open up a world of possibilities. But where can you find the necessary funds to establish your franchise? What are your options?
As we roll into 2021, we remain optimistic that things will soon return to normal. But not everyone is ready or willing to go back to the status quo. Many who were forced to remote work or changed from full time to flex-time out of necessity are considering switching gears rather than heading back to the same daily grind.
There appears to be a surge in those willing to try their entrepreneurial legs out by becoming a business owner and finding more work stability and freedom. Franchising is an excellent way to realize your dream of business ownership without all the risks associated with going it alone.
If you are ready to take the leap, don’t do it out of faith; do it because there is a proven track record of success. But where do you even begin? Many entrepreneurs worry that franchises are too expensive, and they won’t be able to come up with enough capital on their own. The good news is many franchise opportunities are not only within reach; they are under $100,000, which for the average person, is economically doable.