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Old 10th November 2005, 08:37 AM   #1
maghikschtik
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Default Tips on Funding to Start up a Franchise

How the heck do you get funding to start up a franchise if you dont have any money, but they require you to put 25% down..Looking for funding gets tedious.

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Old 10th November 2005, 08:45 AM   #2
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One route off the top of my head that I have seen others take ... is to look for a business partner who has that $/asset - trusted family & friends come to mind. You can establish a partnership w/ someone who has money to invest and in return they get a portion of the business. You provide your hard work for your share/portion of the business.

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Old 10th November 2005, 08:48 AM   #3
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my prob is family wont do it. they want me to stay and work for them. Ill keep diggin around. Im wondering tho.. if a local college might have connections.. hummm ( its early in the morning and im thinking off the top of my head ill stop now )

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Old 10th November 2005, 06:37 PM   #4
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Interesting idea..
I am applying for graduate schooo soon. Now "assuming" ( gawd i dont wanna assume) i get accepted.. The place where i work is going to help pay for grad school..., take some of the student loans to help put the down payment on the franchise.. Of course this seems like a long way away and still feels like dreaming at this point

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Old 13th November 2005, 05:36 PM   #5
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Hello maghikschtik,

You’d better be careful about using student loans for anything else than their intended purpose. I believe there are some legal issues involved here that could carry some penalties.

If you are looking to attend graduate school, where will you find the time to start, operate, and bring a new business to fruition while maintaining your school work?

Capital can come from many places, but they all require planning. Seeing as you are looking to open a franchise a lot of the hard work is already done for you, but you will still need a business plan. You may want to consider a venture capitol firm. The backing of a strong franchise can often help you to receive funding, but you still need a solid business plan complete with financials.

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Old 14th November 2005, 11:27 AM   #6
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Quote:
You’d better be careful about using student loans for anything else than their intended purpose. I believe there are some legal issues involved here that could carry some penalties.
Also, you can't declare bankruptcy out of a student loan. They'll much like the IRS in that they can garnish wages w/o any warning/cour proceedings at all. Tread very, very carefully there - if at all.

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Old 10th February 2006, 02:35 AM   #7
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You could give http://www.vfinance.com a shot. I don't have any experience with them, but I used to get their newsletter and they appear to be pretty solid.

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Old 7th April 2006, 12:10 PM   #8
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Well, there's a lot of small business financing going on at prosper. like this one who just got out of college and got a loan of 10,000 for only 14%! Here is a link https://www.prosper.com/public/lend/...listingID=1487. Prosper is people-to-people lending, so a lot of times it's fairer than typical corporate financing.

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Old 4th June 2006, 05:34 AM   #9
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My opinion would be that if you are looking for business funding, especially 100%, the very first place to start would be to have a very solid business plan.

Not just talking about one of those nice business plans you can pay someone to type up for you. But a clear, definitive plan of how you will operate it.

My wife and I went thru a lot of trouble to come up with a down payment to buy a franchise. We came up with the money, had cosigners to help with net worth, etc. Wife had managed at a company owned store of the same franchise that we were buying, so she was familiar with everything.

Well, while waiting for approval my wife was working side by side with the owner learning the "owner" side of things. What it came down to, while I love my wife to death, was she was in way over her head. We got approved to purchase it, but during the closing found out the owner greatly overstated her profits. This let us get out.

Because we had the money does not mean we were ready to buy the business. We did not have a CLEAR concise business plan on how she was going to run everything.

I hope you avoid the same issue if you do get funding.

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Old 4th June 2006, 05:21 PM   #10
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If you're in the USA, I strongly recommend you check out SCORE (the Service Corps of Retired Executives). They can give you free business advice and help you set up a business plan, which you'll need to get outside financing. If your proposed business appears viable, they also offer low interest small business loans.

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