There are several ways in which to start your own business. If you have a unique talent or invention that is marketed well and is something that people have a need for, you could create a business that is quite lucrative. However, business ownership can be yours without having to dream up a concept. Own a franchise. Prior to starting the process, your due diligence is required by gaining as much information as possible about the type of franchise you want. Also, be sure that you have access to the proper financial resources that will get you started and provide you with the ability to maintain your franchise business.
According to the International Franchising Association, the costs for starting a franchise will depend on the kind of business and several other factors. These costs could range from less than $20,000 to more than $1 million. Once you understand the costs involved and your financing options, you can better determine if owning a franchise is a suitable choice for you.
Self-financing is usually the first consideration for funding the purchase of a franchise, if feasible. This method is utilized by accessing all of your liquid and semi-liquid assets. This would include your available cash, stock investment returns, your home equity and other resources you have that produce cash. When choosing this option please know that your available capital will be tied up in your franchise business. Only you can determine if this is the proper choice by weighing the "hard cost" of other types of financing.
If your funds do not add up to the required amount needed for your franchise purchase, a slower, but very effective method of self-financing is accomplished by opening a business ownership account. Start by depositing no less than $500 in this account per month for a period of 6 months to a year. By using direct deposit you can be assured that your deposits are placed in your business account every month. As you build your account, bankers and franchisors will see you as a serious contender and will extend other financing options to you. Even if you have to save for a few additional months, you are now well on your way to franchise ownership.
Another option to be considered is a bank loan. This method is rather convenient and can be attained easily if you are in possession of the required collateral in the form of home equity to cover your loan amount. It is also referred to as 'setting up a line of credit." By requiring collateral on your loan, the bank is more assured that you will live up to your end of the bargain to avoid seizure of your property, thereby protecting both you and the bank.
A debt financing loan is obtained from financial institutions, such as savings and loans, banks or commercial finance companies. A great asset to small business owners is the U.S. Small Business Administration (SBA) that provides crucial information on writing a loan proposal and other programs to assist small business start-ups. Visit their website at www.sba.gov for recent information.
Your retirement savings account is a viable asset for investing in your franchise purchase. There are financial professionals across Canada and the U.S.; qualified to structure your retirement plan as a corporation. This is done by using your retirement account as the investment vehicle in your franchise. It will ultimately provide your franchise purchasing capital by taking ownership in your franchise and purchasing stock like a functioning corporation. Along with the profitability of your franchise, your retirement account will also experience tax deferred gains.
Franchising is definitely a successful business model, but you've got to know what you're getting inti. You should probably start by hiring an accountant, and ensuring your finances are in order. Then the next step is to put your accountant to work for you investigating the finances of prospective frtanchises. Mistakes are routinely made, but if you work with qualified people your chance of success certainly improves.
According to the International Franchising Association, the costs for starting a franchise will depend on the kind of business and several other factors. These costs could range from less than $20,000 to more than $1 million. Once you understand the costs involved and your financing options, you can better determine if owning a franchise is a suitable choice for you.
Self-financing is usually the first consideration for funding the purchase of a franchise, if feasible. This method is utilized by accessing all of your liquid and semi-liquid assets. This would include your available cash, stock investment returns, your home equity and other resources you have that produce cash. When choosing this option please know that your available capital will be tied up in your franchise business. Only you can determine if this is the proper choice by weighing the "hard cost" of other types of financing.
If your funds do not add up to the required amount needed for your franchise purchase, a slower, but very effective method of self-financing is accomplished by opening a business ownership account. Start by depositing no less than $500 in this account per month for a period of 6 months to a year. By using direct deposit you can be assured that your deposits are placed in your business account every month. As you build your account, bankers and franchisors will see you as a serious contender and will extend other financing options to you. Even if you have to save for a few additional months, you are now well on your way to franchise ownership.
Another option to be considered is a bank loan. This method is rather convenient and can be attained easily if you are in possession of the required collateral in the form of home equity to cover your loan amount. It is also referred to as 'setting up a line of credit." By requiring collateral on your loan, the bank is more assured that you will live up to your end of the bargain to avoid seizure of your property, thereby protecting both you and the bank.
A debt financing loan is obtained from financial institutions, such as savings and loans, banks or commercial finance companies. A great asset to small business owners is the U.S. Small Business Administration (SBA) that provides crucial information on writing a loan proposal and other programs to assist small business start-ups. Visit their website at www.sba.gov for recent information.
Your retirement savings account is a viable asset for investing in your franchise purchase. There are financial professionals across Canada and the U.S.; qualified to structure your retirement plan as a corporation. This is done by using your retirement account as the investment vehicle in your franchise. It will ultimately provide your franchise purchasing capital by taking ownership in your franchise and purchasing stock like a functioning corporation. Along with the profitability of your franchise, your retirement account will also experience tax deferred gains.
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