I’d like to call your attention to a series of video tutorials I did not that long ago as a donation to this community. They are all here and I’d like you to be aware of them. They are organized into modules, 2-10 minutes each. You can pick and choose and jump around, or run through them in the original order. They are here as a resource for you. (Note: the text in bold here highlights links to the videos)
I traveled across the U.S. and around the world, and kept meeting unconventional entrepreneurs -- people who had started a business almost unexpectedly, usually without a lot of planning and almost always without a lot of money. Most of them did so for $1,000 or less, and half of them did so for $100 or less. My goal was to tell their stories in a way that readers could use in their own quest for freedom.

In most cases, franchise owners provide technical support, equipment, and other necessary materials to their franchisees. Also, fellow franchisees can merge and share best practices, business approaches, and marketing strategies to colleagues whose business acumen and management skills are still developing. Simply put, there are a lot of good reasons why starting a business by buying a franchise will be a success.


Jeff White is a staff writer and financial analyst at Fit Small Business, specializing in Small Business Finance. As a JD/MBA, he has spent the majority of his career either operating small businesses (in the retail and management consulting spaces) or helping them through M&A transactions. When he is not helping small businesses, he spends his time teaching his five kids how to become entrepreneurs.

You can arrange to borrow from ordinary commercial banks or credit unions for your new venture. According to the Small Business Administration (SBA), new franchise owners have a higher tendency to borrow from commercial banks than new business owners. Lenders prefer advancing cash to new franchises over other new businesses since they already have trust in the brand and business model of the business being funded.


It’s often easier to get started with a franchise compared to an independent business because a franchise comes with a proven concept, brand recognition, and customer base. Although the success rates of individual franchises vary widely, as a whole, franchises perform better than independent businesses in the long run. According to a report by the International Franchise Association, about 12,000 franchises open their doors every year!

At ApplePie Capital, we are committed to fair lending. We make our commercial credit products and services available to all qualified applicants on a consistent and fair basis. ApplePie Capital does not condone or tolerate discrimination against any applicant on any prohibited basis under the Equal Credit Opportunity Act or any applicable state or local law. Fair lending principles are integrated into our corporate policies, lending operations, staff training, marketing efforts, and third-party lending relationships.


A ROBS isn’t a loan, so there’s no debt or interest to pay back. This lets ROBS-financed franchises conserve more of their income, and as a result, they may be more successful in the long run. You do have to pay monthly administration fees when you do a ROBS, but compared to a loan the monthly fees are about 11x cheaper! This sets you up for a greater chance at long-term success than other financing methods.
Offering medium-term installment loans with repayment periods as long as 5 years, Funding Circle is a lending partner for established franchisees with a strong credit history. Specifically, you’ll need to be a franchisee with a business at least two years old and have a credit score of at least 620. For qualified applicants, Funding Circle has the advantages of offering faster funding than a bank loan would, as well as offering relatively low rates and fees.
The good news is both traditional and alternative lenders are making more loans. A strong economy and record low unemployment rates in 2018 are making all this possible. But a good credit score still carries great value, and if your score happens to be on the low side, here are some lenders you can take a look at when it’s time for getting a small business loan.
He has been on the full-time faculty at Rice University, the University of Arizona, and the Hong Kong University of Science and Technology (HKUST). He has also been an Executive MBA lecturer at HKUST, SKOLKOVO (Moscow School of Management), China Europe International Business School (CEIBS), the University of Illinois (US), and INSEAD (Singapore and Paris). Professor Kay Stice has received awards for high-quality teaching at Arizona, Rice, and Brigham Young University, and he was twice selected as one of the top ten lecturers at HKUST.
But not every small business is positioned for success. In fact, only about two-thirds of businesses with employees survive at least two years, and about half survive five years. So you may be in for a real challenge when you decide to take the plunge, ditch your day job, and become a business owner. The stage is often set in the beginning, so making sure you follow all of the necessary steps when starting your business can set the foundation for success.
1. Understand how credit works. There is such a thing as a business credit score, which factors in things like whether your business makes late payments or is in debt. Be sure to also remember that as a business owner, you basically are the credit representative of your company. Your personal credit score, factoring in things from credit cards to car payments, is a big factor when a bank is deciding whether or not to lend. Don’t lose heart; there are positive things you can do to build up credit.
You’re applying for a business loan, and you may even be organized as a corporation or LLC. However, lenders will almost always want to hold you personally responsible for the loan. If they don’t do that and the business fails, there’s nobody left to repay them. But if you make a personal guarantee on the loan (which is likely a requirement), they can go after you personally, and your personal credit will suffer if you don’t repay.
So what’s the catch? You must have an eligible retirement account (Roth IRAs are not eligible, but most tax-deferred retirement plans are), and generally speaking, you should have at least $50K in the account to rollover. This means that ROBS are often not an option for young franchisees who haven’t had sufficient time to save money in a retirement account. In addition, there is a risk to doing a ROBS. If the franchise fails, you could lose your retirement funds.
When starting out, your product or service has to be at least good if not great. It must be differentiated in some meaningful and important way from the offerings of your competition‎. Everything else follows from this key principle. Don’t drag your feet on getting your product out to market, since early customer feedback is one of the best ways to help improve your product. Of course, you want a “minimum viable product” (MVP) to begin with, but even that product should be good and differentiated from the competition. Having a “beta” test product works for many startups as they work the bugs out from user reactions. As Sheryl Sandberg, COO of Facebook has said, “Done is better than perfect.”
A number of costs go into the launching a franchise. Initial costs include paying for professional advisers such as a lawyer to look over contracts and an accountant to advise or manage your finances. You’ll also need to invest money up-front for anything your business will need: real estate or lease payments, inventory, equipment, supplies insurance, licenses, recruitment, employee preparation, and signage. A grand opening event and initial marketing expenses will also add to your startup costs. You’ll also want to account for ongoing expenses such as professional services, supplies, employee pay and benefits, rent or property taxes, utilities and maintenance.
StumbleUpon recently published an excellent business plan guide; also consider reviewing startup information provided by the IRS. Help from experienced mentors is free through organizations such as SCORE, an organization of volunteer business mentors who provide specific advice and resources to newly created and growing businesses on a no-cost basis. There are many other organizations, such as your local chamber of commerce, that can also provide mentoring and guidance.
Real estate investment is a great business. However, the SBA will not guarantee loans for business that do what they consider speculation. Unfortunately, real estate investment is considered speculation. We may be able to get you a non SBA business line of credit up to 150K. If you are interested, please fill out our pre-qualification form and we will schedule a call to go over your options. https://keycommercialcapital.com/prequalify/
When you're searching for B2B partners, you'll have to choose very carefully. These companies will have access to vital and potentially sensitive business data, so it's critical to find someone you can trust. In our guide to choosing business partners, our expert sources recommended asking potential vendors about their experience in your industry, their track record with existing clients, and what kind of growth they've helped other clients achieve.
We designed this workshop to help you, a new business owner, understand and meet your federal tax obligations. This workshop is constructed so that the first three lessons... What You Need to Know about Federal Taxes and Your New Business, What You Need to Know about Schedule C and Other Small Business Taxes and Tax Forms; And How to File and Pay Your Taxes Electronically are for everyone, no matter what kind of business you have or whether you have employees.

So what’s the catch? You must have an eligible retirement account (Roth IRAs are not eligible, but most tax-deferred retirement plans are), and generally speaking, you should have at least $50K in the account to rollover. This means that ROBS are often not an option for young franchisees who haven’t had sufficient time to save money in a retirement account. In addition, there is a risk to doing a ROBS. If the franchise fails, you could lose your retirement funds.
6. Create local awareness and establish a network. Join chambers, business associations, community groups, etc. Find ways to get involved. Networking is a great way to capture business leads as long as you don’t come on too strong. It allows you to meet new contacts and create more brand awareness and new referrals. Sponsor sporting events, nonprofit events or anything that is for a good cause. Get your name out there while also being a good community steward. Give away SWAG (promotional items with your business name, logo and contact info on them). T-shirts are a great example of free walking advertisements for your business.

Though the fastest growing entrepreneurs were entering this business model are Millennials. Franchising at a rate that cannot be ignored; the latest Census data shows that 66% of Millennials are interested in entrepreneurship, nearly making up 30% of all entrepreneurs are between 20-24 years old, and over 25% are self-employed. Additionally, they launch 160,000 start-ups each month motivating the IFA (International Franchise Association) to start the NextGen Franchise initiative that recognizes and supports young entrepreneurs.  The IFA is going as far as reaching out to this generation while their still in school, introducing them to the benefits and possibilities of franchising offered through education, scholarship, and leadership. Another age group making up a large part of the market are the baby boomers and seniors. More services being developed are quality of life/wellness products, patient advocacy, non-medical home care, and respite care. And lastly, there are an increase in businesses interested in kids and child enrichment that is thriving and showing no signs of slowing down. Each has displayed an interest in getting kids moving, reading, thinking, and believing in themselves. These businesses have provided a sense of accomplishment and community within a supportive environment. Therefore, a trend of development centered around fitness, sports, music, art, STEM (science, technology, engineering, and math), tutoring, and child care have grown immensely. However, with the trends centering around technology, the food industry, and the distinct influence of individual age groups, franchising is proving to be a flourishing industry with a positive future.


If you identify areas of weakness, you’ll need to make a plan for dealing with them. If you don’t have a head for figures, perhaps you could partner with someone who does. Or you could hire an accountant, or improve your own skills by checking out some of our super-simple accounting tutorials or doing other training. If you’re no good at designing websites, hire someone to do it for you.
Visuals – As Instagram is a visual platform, special attention has to be given to the visual aspect of your posts. As well as choosing a color scheme to match your brand, you should also use a consistent filter. Using the same filter for your posts will help users recognize your images. For instance, Madewell’s Instagram incorporates its color scheme for consistent images and branding.
Approximately 75 to 100 franchisors are offering or working on offering creative financing programs for start-up franchise owners or those looking to expand. Programs range from zero-percent financing for a limited-term, lower license fees, reduced royalties and minority stake ownership by franchisors in multi-unit outlets. Each brand has its own offering, so down payments and collateral requirements will vary.

So what’s the catch? You must have an eligible retirement account (Roth IRAs are not eligible, but most tax-deferred retirement plans are), and generally speaking, you should have at least $50K in the account to rollover. This means that ROBS are often not an option for young franchisees who haven’t had sufficient time to save money in a retirement account. In addition, there is a risk to doing a ROBS. If the franchise fails, you could lose your retirement funds.


1. You can do it because others are doing it. Think the country is dominated by big businesses run by people with MBAs? Wrong. 99 percent of businesses in the US are small businesses, and they employ 80 percent of the population! You don’t need any “special” training to run a business. You just need an idea, the desire to learn and adapt, and the ability to take action!

Many traditional lenders provide funding to franchisees, so this should be a top-line option for those looking for a loan. Each lender will have different eligibility requirements and loan products so examine documents in detail before signing on the dotted line. You will need a good credit rating, a solid application package, a down payment and some form of collateral.
Overcoming this problem is easier than it used to be, thanks to the plethora of marketing opportunities on the internet. Many of them, of course, are free or low cost, but don’t forget that your time is also an investment. So don’t make the mistake of signing up for every social media site out there and letting your valuable time dribble away in tweets and status updates.
I am looking into opening a truck parts supplies shop/ body shop repairs/painting. I currently own one semi truck and use it for hauling agricultural products. my credit score is in the 600’s. Would I qualify for some type of loan? The local banks in my area have not qualified my for a small business loan, while others with worst credit than I get approved. The town I live in is small, so it’s like you have to know someone to get approved. If you know what I’m saying.
If you identify areas of weakness, you’ll need to make a plan for dealing with them. If you don’t have a head for figures, perhaps you could partner with someone who does. Or you could hire an accountant, or improve your own skills by checking out some of our super-simple accounting tutorials or doing other training. If you’re no good at designing websites, hire someone to do it for you.

United Capital Source offers franchise business loans, or franchise financing, to help franchise owners invest in growth, open new locations, and stabilize revenue amid upcoming bills or deductions. We understand that franchises deal with an above average amount of weekly and monthly expenses. This is why our franchise business loans tend to carry repayment systems that are different from those assigned to an independently-owned business. Terms will be structured to ensure your deductions do not prevent you from paying your rent and employees at the end of the month.
Traditional bank options include term loans, lines of credit and commercial mortgages to buy properties or refinance. Through banks, the U.S. Small Business Administration provides general small-business loans with its 7(a) loan program, short-term microloans and disaster loans. SBA loans range from about $5,000 to $5 million, with an average loan size of $371,000.
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