10 Tips to Financing a Franchise – by Franchise Direct

From childhood we learn the virtues of independence, hard work and entrepreneurship. As the boss looks over our shoulders in our twenties; a work life balance disappears in our thirties and the neighbours tell us about their cruise in our forties, the dream of starting a business can become a dull ache of desire. But how do you actually go about raising the cash and ironing out a concrete business model?  Here are some tips by Work Your Way’s Sponsor Franchise Direct

Trying to pinpoint market trends, product designs and advertising campaigns can be difficult whilst trying to juggle the business of everyday living.

Franchise businesses offer a way to get into business for yourself, but not by yourself with the training and support of the franchisor. These are the people that cried the tears and made the mistakes, so you can get to work and start smiling as your own boss.

With a tried and tested business model, franchising can prove less risky than starting up on your own.

However, with credit harder than ever to come across, many wheeze a resigned sigh at the thoughts of a bank manager granting their entrepreneurial wishes.

Small and medium sized businesses throughout the country are choking from a lack of credit. Like water to a sunflower, it’s hard to get a business to grow if you can’t get credit flowing.

Franchisors have been forced into finding a smart way for franchisees to fund their business, and there’s never been as many innovative franchise packages out there as in 2012.

1. Many franchisors, from the big fish like McDonalds, to a small t-shirt franchise, have arrangements with many of the high street banks like Lloyds TSB and HSBC. Through these partnerships, you can borrow up to 75% of the investment price, so for a £10,000 t-shirt franchise you’ll only need to personally invest £2,500. These banks have specialist franchise and small business departments, and they know their franchisor has a successful business model that’s been tried and proven. Franchisors will maintain good relationships with the banks, meaning you have a better chance of securing funding to start a franchise business than to start out on your own.
2. Buy-in and royalty fees, the amounts you pay a franchisor for their support and use of their brand, have been slashed across the board as franchisors seek to make up for the credit crunch, and many franchises are offering special discounted rates with minimum investment levels 30-40% lower than pre-recession times. A handful of franchisors, especially in the service sector – such as cleaning and recruitment businesses – are even offering fee free franchising for the first six to twelve months to get you off to the best possible start.
3. A third option for starting a franchise business has been piloted by a number of product-based franchisors who are offering working capital and start up loans to franchisees, so you can borrow directly from the franchisor.

Whether your budget is £2,000 or £2m, with a sense of determination and motivation it’s possible to start your own business, with a model that works and a helping hand to get you from your first day to the end of your first year.

Steps To Owning Your Own Franchise Business

1. Talk to your partner and family. It’s important to have their support.

2. Assess the amount of cash you have available to invest. Will your partner be able to cover living costs for the first few months or do you need to save for this too?

3. Decide if you want to work full-time or part-time, with premises or from home. What are your key skills and what areas interest you?

4. Based on your needs, search for franchise opportunities within your budget and location.

5. Make contact with franchisors you are interested in, arrange a meeting and gather as much information as possible. Ask to talk to current franchisees.

6. Put together a comprehensive business plan, the franchisor can help you with figures and projections.

7. If you’re seeking finance, arrange a meeting with the bank manager.

8. Once your solicitor has reviewed the franchise contract, and you are happy, sign off on it.

9. Undergo the initial training, this can be residential, classroom or on the job training.

10. Whoop! You are now ready to start trading. Proceed directly to Go and start earning!

Franchise Direct UK is a dedicated resource with a wide list of businesses for sale and franchise opportunities for sale. View an impressive article index relating to franchising, franchisee success stories and more. Find your perfect franchise opportunity at http://www.franchisedirect.co.uk/

Be Independent, Be mentored, Be a franchise

Find A Business Idea That Works For You – Think Franchise Direct

Francise Direct is the UK’s leading franchise directory website.  With hundreds of franchises to choose from, you can easily search by industry, price range and location. We even have a dedicated Stay At Home section and a comprehensive franchise and business information centre. Read our success stories and find the right franchise for you

Starting your own business can be the most exciting thing you’ve ever done, but like all adrenaline rushes, it comes with a strong dose of fear.  Franchises offer an antidote to the fear of being bitten – a business model that has been proven to work, and turn a profit.

You want to be your own boss running your own business, but are not sure where to start; what resources you need; how to market products and services, how to hire and train employees etc. Don’t despair – a franchise opportunity could be the right choice for you.

Franchises cover a diverse range of areas, including:

• Dog-walking,
• baby yoga,
• care of the elderly,
• web design,
• travel agency,
• domestic cleaning,
• chocolate gifts,
• legal and accountancy,
• French gourmet wine and cheese,
• charity fundraising,
• magazines,
• photography,
• fashion design and even …
• Botox.

For those who don’t know where to begin, a franchise offers safer entry into the business world, offering a fast route into business ownership, with other business owners mentoring you through the start-up process. Even after you open your doors, franchisors continue to offer support and guidance as you blossom from small businesses to a corporate giant.

When we think of the word ‘franchising’, American fast food corporations come to mind, but franchise business opportunities are as wide and diverse as you want them to be.

A Small Business with Flexibility

Many low-cost franchises are home-based. With a small home business you can be your own boss and work towards your own dreams, instead of being a worker drone that brings honey to the queen bee.

In an economy that’s just coming back from the brink, working from home offers a safety net for many businesses whilst they are starting up. For others, having a home-based office is a permanent solution to their working requirements, i.e. a web design business.

Working at home means that you can be there for your family for the important moments, like those one-time only first steps. Many franchises allow you to start off small, working from home part-time and eventually expand as your business and your family grows.

This business model is, however, governed by a contract. It is important for anyone deciding to start a business by becoming a franchisee to remember that in franchising, a person is tied into a partnership arrangement for a defined period of time.

You also pay license and advertising fees to the franchisor. You may also be contractually obliged to do things exactly how the franchisor wants them done. Franchise agreements can vary from business to business, so make sure to get your thinking cap and do some researching before committing a signature to the franchise agreement.

The first step in the adventure of becoming your own boss is researching the opportunities available and what different business models are out there.

For more details, please visit the website at www.FranchiseDirect.co.uk