By Pete Gilfillan
The leap from investigating a franchise to buying one requires a reality check from any potential investor. There are three main components that will determine if you are financially solvent and solid enough to buy into the franchise you choose: your net worth, your liquid capital, and your credit history.
With your business plan in hand, it’s time to tap all your available resources to find the best available financing at the lowest cost to you. As you enter this phase of capitalization, keep in mind that there are lenders, accountants and attorneys who specialize in franchise financing. In some cases, they represent your best chance of a smooth, successful financing experience.
Most franchise companies require a minimum level of liquid capital. They know that businesses often fail because they are undercapitalized, and they want to be sure franchisees are set up for success.
Financial security. Career stability. On the most basic level it’s what we all work for—the ability to hit the pillow at night knowing we are, and will continue to be, able to provide. It’s easy to think that once you’ve got a corporate job and a substantial paycheck, you’re set. But in this day and age, that’s a myth. The fact is, the kind of career and financial stability provided by corporate employers gets more fickle and fleeting with every passing year. As a franchise consultant who’s worked with countless candidates who got caught unprepared by corporate moves that pushed them down or out, I know from experience that if you want true career and income stability, you might want to start thinking about building it for yourself.