10 Steps to buying a Franchise Business – Step 2 Evaluate your Finances

Bees are careful to conserve their precious fuel during the hunt for new fields and harvest of resources in order to avoid depleting themselves. They factor in the costs of collection for maximum production at a minimum expenditure of energy. They never compromise the long-term success of the organisation by exhausting their capacity to perform.

Being passionate about what you do, doesn’t always mean you are making money out of it. Ultimately, we are all in business to make a profit, even charities have to make some profit otherwise we would just be living on fresh air and love…

The reality is that we have bills to pay, families to feed, employees who are depending on us to make a profit so they can earn some money and the financial planning is an important part of a successful business.

So getting the figures right is so important for the success or failure of your business. Every product you buy, every store you visit, every media message you receive, every choice you make in our consumer society has been shaped by the forces of marketing. Profit maximisation through customer relationship marketing is invaluable to understand, measure and implement.

During the process of evaluating if a Franchise business is right for you, you will need to define how much money do you need to live, what would you like to earn to pay for your mortgage, food, kids… You may already be seated on a mountain of cash or you may know someone who may wish to invest, or will you get a business loan to get you started.

There are so many ways now to raise funds, look at for options; your council may be offering a start-up grant, this is an excellent way to gain cash without paying too much interest. You may want to look at loan, remortgage or personal loan, shop around see what they offer you. As well as the initial franchise fee, you should also think about including a working capital to pay the bills for business between 12 to 18 months.

Whatever way, financing your business need to be something you sort out early in the process so you can be sure that you have no cash flow worries especially in the first year of the business.

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