7 Essential Steps - Financing your new Franchise
6/14/2007 - by: Joel Libava - President, Franchise Selection Specialists Inc.
- Make sure you have a formal business plan. If necessary, get the help of a CPA or other financial expert – and don't forget about your local small business development centers.
- Approach lenders you know: including your personal bank. You already have a financial relationship with them. See if they are eager to help you with lending options. And check if they're an SBA Preferred Lender.
- Complete your loan paperwork thoroughly. Include lots of detail. If you are not detailed enough in your application, your lender might feel you are not detailed enough to actually run your business.
- Be realistic – even conservative – in your income projections. If you end up doing better, fantastic!
- What if you were being asked for a loan? Would you loan money to you for this business? This helps you "sell" the plan to your lender.
- Keep on keeping on. Many get turned down on their first loan request. See what you did and to see what you missed. Work with a financial professional and submit your application elsewhere.
- Be easy on yourself. You're in a learning experience, and your patience is a great virtue at this stage in your business start-up.
author: Joel Libava, President of Franchise Selection Specialists Inc., brings a host of tools, skills, and real world franchise industry experience to his clients, coming from a franchise management background in the automobile and restaurant/hospitality industries.