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Do you want to invest in a franchise business? Has being a stay at home mom taken a toll on your bank account? Most of us are strapped for cash now days- with the economic downturn and the widespread lay-offs. The reason that most entrepreneurs choose to buy a franchise is because the initial investment is much smaller than that required to start a new business. This coupled with the instant brand recognition, technical support, training and work at home options make investing in a franchise appealing for moms. Remember, franchisers need you! That's right - the very reason that franchises can be "bought" is because franchisers want to expand their operations, and raise capital. So they will help you .Here are a few tips to help you raise the capital you need to start your very own franchise business- Have a Business Plan This is crucial. You must research all your options and compile a detailed plan on how you intend to operate the franchise business, what makes you the ideal candidate, the expenses and costs you expect, how you intend to payback the loan and your projected income for at least three years into the future. This requires a lot of thought - you will have to weigh the risks involved to figure out if your plan is viable. There are many franchise opportunities for you to choose from- but be wise. Choose a franchise that you believe in, one that you are sure you can make money with. Then, get started on your detailed business plan, with the help of an accountant. Be Confident You have a business plan, now sell it. You have to convince your investor or lender to believe in you and your capability to make the franchise business profitable, and to return the loan. Be professional - your personality, attitude and credit records will matter to your investor. They will pay close attention to you to ascertain whether you are a "safe" investment, despite the obvious risks involved with starting a business. So be prepared to make a good impression. Consider asking family and friends This may be the "obvious" option for some, and the last resort to others. But this may be your best option. Why? Because there will be no interest involved and they will understand why this venture is so important to you. Don't take it for granted that they know you, so you need to be "professional". Present your business plan, show them that you know what you're talking about, and they may invest in you! Most often, the loan you receive may not help you cover the whole cost, but it still helps narrow the difference. Bank loans and Other Investors In your quest to raise capital, you may consider applying for a bank loan or looking for other investors. Look up your options in terms of banks that offer such loans, companies that may be interested in investing and other probable individual investors. Before you approach them, determine if you will be able to afford the monthly costs- after all, banks and investors are looking to make a profit- so the interest rates may be high, translating in to higher payments each month. Present your business plan, along with your accountant to convince them that you're a worthy investment. Negotiate Negotiate with your investor to achieve your goals. Make sure the points you make are valid, and you may win them over, whether it's your family, the bank or your potential investor. Most franchisers offer help to set up in the form of financing, or easy payment plans that are deducted from your net profit. Your business plan will go a long way in persuading them to make you a part of their team. Always keep in mind that the price you pay initially to set up and start off is not the total cost involved. In addition to royalty payments to your franchiser, you will be faced with running costs such as rent, hiring and utility costs. So, you need to project a total dollar amount slightly higher than you would normally expect to see you through the ups and downs of starting a business. When you have prepared a good business plan, finding the necessary financing may not be as hard as you think. All the best! Bio: Bizymoms has been helping women start work at home businesses for over 10 years. Now, with our Franchises for Moms section giving great home business ideas, women can start their own franchise business! TO LEARN ABOUT BUDGET STRETCHER PREMIUM Giving You The Power To Control Your Money |
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