NAME(S): Mark and Debbie Greening JOINED PPP: May...
Whilst you may have the means to fund your franchise, the majority of the time franchise buyers will need access to other financial sources. Below are a few options to get you off your feet to start-up!
Assess how much personal finance you have to contribute, in order to minimise the amount borrowed (even if you secure a grant or investment, it may not cover 100% so you'll need another source).
You may be eligible for a government grant; check with your local authority (n.b. Scotland, Wales and Northern Ireland have their own backed-schemes). You may also be able to find a private grant.
Perhaps a loan is the best option. Ensure you have thoroughly researched the best interested rates and avoid 'payday loans'! HSBC and NatWest bank both provide a lot of support to franchises.
Independent organisations who aim to drive wealth into communities or disadvantaged areas. CDFI's can provide individuals or small businesses with loans. Find out more: findingfinance.org.uk
If you've been on jobseekers allowance for 3 or more months, you may be able to access a small loan to help with start-up costs. Check with your local job-centre (n.b. £1000 max - suits low cost).
Maybe your idea is appealing to a high net worth investor. Research 'Business Angels Association UK' to start with. Ensure you have a well thought out business plan, solicitor and adviser in place.
With the recent surge in online crowdfunding avenues, such as crowdfunder, there is a great opportunity to pitch your idea to hundreds of potential investors. Research the cheapest rates.
If you are lucky enough to have a friend or family member willing to invest, still treat this as with any other funding means. Determine whether they would like shares in business, draw-up a contract etc.