Considering investing in a franchise? You’re already on the right track to success! You probably have some questions in your head, so we put together 7 things to know about investing in a franchise.
- Money. Acquiring capital is easier than you think. Most people think you need tens, hundreds, or millions of dollars to invest in a franchise. The truth is, yes you do need capital, but you would be surprised at how much capital you have access to. There are multiple sources of capital that you can use to open a franchise.
•Lines of credit.
•Small Business Administration Loans.
The general financial criteria of someone looking to open a franchise is having a minimum of $100,000 net worth, $50,000 in liquid assets, and a credit score of 700 and higher.
- You can control your own time. If you want to stop trading time for money, opening a franchise can free you from working long hours for someone else’s business. Putting your biggest priorities first instead of work can be a perk of investing in a franchise.
- Investing in a proven business system gives you a head start if you open a franchise. Franchising gives you a short cut because the system is already created for you. It can be seen as an unfair advantage because you do not have to waste time in trial and error.
- Less decision risks. You do not have to waste time doing research, risking wrong decisions, and becoming overwhelmed with the business if you decide to open a franchise. The guide given to you when you open a franchise has already been through the mistakes and can relay the information to you, ultimately avoiding struggle.
- You will need to commit three major resources: Time, Energy, and Money. It will take some time to go through the process of figuring out if investing in a franchise is right for you. Energy will be used deciding which franchise company is the best fit. Money is needed for the start and can be a major commitment for some. However, investing these three major resources in the beginning is beneficial for the outcome when the franchise is yours.
- If you talk to the right people, you will never be alone during the process when opening a franchise. When starting the process, you will need to form a team of trusted advisors in your corner. You will find a franchise consultant, a franchise attorney, an accountant and a financing company to assist the whole start-up process.
- Know your goals beforehand. There are over 4,000 franchise companies to choose from. It is important to ask yourself: What are the characteristics of the business you’re looking into? Knowing your likes and dislikes will aid in the process of finding which franchise you like best.
If you think opening a franchise after reading this article sounds right for you, here is a link to book a call with Giuseppe. Call (908) 873-6134 or email email@example.com for more information.