Whether you’re looking at buying into a franchise or asking yourself “how can I franchise my business?”, the question of money is always important. Let’s take a look at some of the different ways people handle the finances needed for franchising.
Start small
Some franchises cost several hundred thousand pounds to invest in, while others simply require a few hundred pounds. It is wise to start small and build up your success and financial reserves. This can be a very healthy, sustainable way to build a business, and it gives you a cash base to grow and evolve into other opportunities, such as a bigger delivery geography or another franchise.
Look at finances
Some lenders will offer specific business finance for would-be entrepreneurs looking to buy into a franchise. You can look at business loans to cover the cost of a new franchise, either wholly or partly, or see what offers the franchisors are offering. Some may offer financing themselves, while others may offer staged investment opportunities so you don’t have to bear a hefty upfront cost. Look at banks, alternative lenders and digital lenders as they are often more flexible.
Move up in the world
Other successful owners will look at how to franchise my business to free up funds for further investment and to monetise their existing success. There’s an active resale market for franchises, too!
These are just some of the methods available to finance a franchise, so look broadly, plan your finances carefully, and create a plan that helps you successfully move into the franchise ownership world.
