Tips for Four Types of Job Seekers - continuation 3rd part
June 26, 2009 – 6:35 amWelcome back!
- Ferret out sources for start-up cash. Franchisors often provide start-up capital for their franchisees. Other owners of fledgling businesses will have a tougher time getting financing, though. The most common source of money for entrepreneurs are friends and family members. After you try tapping your circle, you may want to try your state’s economic development office, the Small Business Association, banks, or even venture capitalists -speculators whom you repay with money, equity in your business, or both. Once you go to serious lenders asking for money, you’ll need to have a business plan that sings and the expertise to pull it all off.
- Finally, before signing on with a franchise company, check it out. A franchisor is a business that licenses its concept to many business owners to create a uniform chain of stores or outlets. The most popular examples are food businesses, such as McDonald’s and Burger King. These titans typically require a pile of start-up cash, in excess of $500,000. Plenty of other franchisors ask far less, however -sometimes under $25,000. they typically include franchisors of decorating, cleaning, travel, and auto services businesses.
Because they require less start-up capital and the concept is already proven, franchises generally pose less risk than a business started from scratch. But never forget that a franchisor merely provides a foundation for your business; it’s no guarantee that your operation will succeed. For a listing of more than 5,000 franchisors nationwide, plus information on how to check out the financial soundness of a franchisor, call the International Franchising Association in Washington, D.C. (800-543-1038) and ask for the Franchise Opportunities Guide. For $21, they’ll send you a copy.
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