My HMO Journey: No rest for the wicked as we approach 2021
My HMO Journey: No rest for the wicked as we approach...
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!
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Personal Finance
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).
Grants
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.
Loans
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.
Community Development Finance Institutions (CDFI's)
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
New Enterprise Allowance
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).
Business Investors
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.
Crowd Funding
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.
Friends and Family
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.
