Whether you're starting an online business or a brick-and-mortar model, figuring out how to start a business takes time and research. Starting a business involves planning, making important financial decisions and completing a series of legal activities, such as choosing a business structure. Before you can decide how you want to structure your business, you need to know what your options are. Each business structure has advantages and disadvantages, and choosing the right one depends on your unique situation. The most common ways to organize a business include, limited liability company (LLC), corporation, nonprofit corporation, partnership, limited partnership, limited liability partnership, and sole proprietorship. LLCs are a popular choice for small business owners because they offer personal liability protection with great tax and management flexibility, while incorporating a business protects your personal assets and is preferred by outside investors. LegalZoom has all the resources you need to start a business and maintain it. Whether you want to form an LLC or trademark a business name, LegalZoom offers services to help you get it done fast and affordably. LegalZoom can also help you obtain the necessary business licenses and permits for your new business. Get the peace of mind you need when starting a business by letting LegalZoom take care of the details while you focus on the parts of your business that matter to you the most. 

If you do decide you’re going to need space, consider the number of employees you’re going to need and the equipment that will fill the space—chairs, photocopying machines, a fridge, a coffee machine, a reception area, a meeting room, and so on. Furthermore, how quickly do you expect to grow? If rapid growth is in the books, rent a space where there is room for growth and so that you don’t have to change your business address.
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/
You should specifically start your search for a lender that has experience funding franchises. Some major banks such as Bank of America, HSBC, and PNC have specific programs targeting franchisees. Smaller institutions specialize in franchising in specific industries, such as restaurant franchise funding from Oak Street Capital, and hotel funding from Access Point Financial.
Create a logo that can help people easily identify your brand, and be consistent in using it across all of your platforms, including your all-important company website. Use social media to spread the word about your new business, perhaps as a promotional tool to offer coupons and discounts to followers once you launch. Be sure to also keep these digital assets up to date with relevant, interesting content about your business and industry.
We are often asked by franchise owners, “What do I need to qualify for franchise financing with Balboa Capital?” Well, they couldn’t be more happier with the answer to that question. If your franchise has been operating for at least one year, and it generates $300,000 or more in annual revenue, the chances are pretty good that you will qualify. We will just need to review your credit to make a decision.
Able Lending may also lend you additional funds based on your qualifications and how much you can raise from the people you know. If you can raise up to 10% of your total loan amount from people you know, have a 600+ credit score, have been in business for at least 1 year, and have $100K+ in annual revenue, then you could qualify for a loan through Able Lending. Either way, they can fund you for up to $1,000,000 in as quick as 1 week.
After all, small-business loans can help you get from A to B, providing vital capital to jumpstart your business expansion. Yet these loans are also notoriously difficult to get; and, should anything go south with your business, you may lose the collateral you put up for the loan. What's more, to qualify for most bank loans, your company will need to have been in business for at least one to two years and meet annual revenue requirements -- to name just some of the criteria required.

Dana has worked on domain name disputes, beginning with complex multiparty cybersquatting actions in 1999 prior to the adoption of the Anticybersquatting Consumer Protection Act. Dana's trademark work has included the brands of many Las Vegas resorts, such as Bellagio, Mandalay Bay, Wynn, Palms, Treasure Island, Station Casinos, Golden Nugget, and Stratosphere. Dana has also worked on hundreds of trademarks for noncasino clients, including Sunbelt Communications, Teligence Communications, University of Nevada–Las Vegas, HyLoft, iGolf.com, and many others.
Whether you're starting an online business or a brick-and-mortar model, figuring out how to start a business takes time and research. Starting a business involves planning, making important financial decisions and completing a series of legal activities, such as choosing a business structure. Before you can decide how you want to structure your business, you need to know what your options are. Each business structure has advantages and disadvantages, and choosing the right one depends on your unique situation. The most common ways to organize a business include, limited liability company (LLC), corporation, nonprofit corporation, partnership, limited partnership, limited liability partnership, and sole proprietorship. LLCs are a popular choice for small business owners because they offer personal liability protection with great tax and management flexibility, while incorporating a business protects your personal assets and is preferred by outside investors. LegalZoom has all the resources you need to start a business and maintain it. Whether you want to form an LLC or trademark a business name, LegalZoom offers services to help you get it done fast and affordably. LegalZoom can also help you obtain the necessary business licenses and permits for your new business. Get the peace of mind you need when starting a business by letting LegalZoom take care of the details while you focus on the parts of your business that matter to you the most. 
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To ensure success for both entrepreneurs and investors, Plum Alley requires businesses that crowdfund to secure at least 30 percent of their goal during a one-week “private” campaign before opening the crowdfunding to the public. This ensures investors that the business already has some financing, making it more likely they will reach their goal since research indicates that businesses who get 30 percent of their funding goal within the first 48 hours of crowdfunding have the most success.
A lender is primarily concerned about the ability of the borrower to repay the loan. To the extent that a security interest can be given to the lender on company assets (company equipment, property, accounts receivable, etc.), the borrower should be able to increase its chances of getting a loan on favorable terms. Some lenders may insist upon the personal guarantee of the principal owner of the business. That is best avoided if possible as it puts the owner’s personal assets, and not just the business assets, at risk.
On the other hand, food trucks and vending machines are trends helping to mold the industry even though they are not new concepts. The consumer desire and such convenience have become overwhelming, thus inspiring a more innovative variety of food trucks and vending machines. Their market typically consists of business parks and buildings, transit areas, tourists spots, sporting, cultural, and other entertainment events, and tertiary education institutions. Thus, for example, the vending machine company named the Burrito Box, makes all their food off-site and franchises refill the contents daily. With this approach, consumers get the same quality of food that they would get out of fast-casual restaurants. As follows, the capital it would take to start up a company of this sort ranges from $50,000 to $250,000, but it all depends on how equipped the truck comes. Its also important to mention that since consumers have demanded more artisanal products, food businesses are investing in fresh and healthier ingredients and options. Which can be seen already with specialty sandwiches, locally sourced products, vending machines with healthier snacks, build your own concepts (assembly line formats, similar to Chipotle), and upscale versions of the basics. Either way, this model is becoming more popular, lucrative and assessable to entrepreneurs of all kinds.
When you do a ROBS, you basically sponsor a retirement plan under your franchise, rollover funds from your personal retirement plan to the company retirement plan, and use those funds to buy shares of stock in your business. The sale of stock creates the capital needed to start or buy a new franchise or recapitalize an existing franchise. Read our in-depth guide on ROBS to learn more about how it works.
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Work with the franchisor’s preferred lenders: Often times, franchisors will partner with preferred lenders that they refer you to for financing. They may also have relationships with leasing companies that can lease you essential equipment for your franchise. When possible you should look at working with these lenders, because they’re familiar with your franchise brand and business model.

We love this lender for their sterling reputation, excellent customer support, and reasonable terms and rates. But again, you’ll need to already have an established franchise to qualify, as well as good credit. This loan also takes longer to apply for (and receive) compared to most other online franchise loans, and it can potentially take a couple months for the money to come through. You’ll need to submit all the documentation you’d need to get a traditional SBA loan, and it will be helpful if your franchise is already listed in the SBA Franchise Directory. Even though there are a few more hoops to jump through than with other alternative lenders, SmartBiz is still one of the quickest ways for a franchisee to get an SBA loan.


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.
Outside of the typical startup costs, there are different costs that are unique to franchise businesses. First is the franchise fee, an upfront fee to the franchisor for the right to use the company’s branding and model. It can be paid in a lump sum or in installments, and varies widely by industry and company. It will likely to be at least $10,000 – sometimes substantially higher – and is typically nonrefundable. Franchisors are also likely to charge recurring royalty and marketing fees – usually arranged as a percentage of sales at the franchisee’s store – usually 4 to 8 percent for royalties and 2 to 4 percent for marketing.
In a misguided effort to save on expenses, startup businesses often hire inexperienced legal counsel. Rather than spending the money necessary to hire competent legal counsel, founders will often hire lawyers who are friends, relatives, or others who offer large fee discounts. In doing so, the founders deny themselves the advice of experienced legal counsel who could potentially help them avoid many serious legal problems.
He is president of Toister Performance Solutions, Inc., a consulting firm that helps companies improve customer service. Jeff has appeared on numerous lists of top customer service experts including Global Gurus' World's Top 30 Customer Service Professionals, ICMI's Top 50 Thought Leaders to Follow on Twitter, and HDI's Top 25 Thought Leaders in Technical Support and Service Management.
Balboa Capital works with franchisees in the quick service restaurant, fast casual dining, hospitality, and fitness industries. Helping you get the best financing solution is our primary goal, but we never forget the importance of excellent customer service. Your experienced Balboa Capital franchise financing manager will work closely with you and is committed to your success. Once we earn your business, you will see why we are fully accredited by the Better Business Bureau (BBB).
Bio – Your bio should describe your business and display your brand personality. You should also use the 150 characters to explain what users can expect from your Instagram profile. Try using emojis and hashtags in your bio to add personality and for users to find your brand. See how Target makes use of emojis and hashtags to highlight its competition.
There are sources of startup money that may not be as obvious to franchisees that can be helpful. Using equity from a home loan or a 401(k) plan, can provide a kick-start to your business if conventional sources of financing are not available. However, those products may not be optimal over the long run when compared to loan products specifically geared to funding a small businesses.
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.
Whitney Johnson is a leading thinker on driving innovation via personal disruption and cofounder of Clayton Christensen's investment firm. She is a regular contributor for Harvard Business Review and LinkedIn, and the author of Disrupt Yourself, which Publisher's Weekly called "superb, savvy, wise." Whitney also speaks and consults with Fortune 100 Companies. Recently, her work was recognized by the Thinkers50, which named her as a finalist for the 2013 Future Thinker Award. You can find her at whitneyjohnson.com.
Qualifying for an SBA loan as a new business isn’t easy. You generally need to have a strong credit score (ideally above 680), some collateral, and a 10-20% down payment. However, a large percentage of SBA loans go to franchises because lenders can easily access loan performance data for franchises and predict the franchise’s ability to pay back the loan.
Your answer will be something like the famous “elevator pitch”, or maybe a mission statement. It doesn’t matter whether it’s perfectly polished yet, but it is important that your answer is clear and easy to understand. If you were talking to your neighbours at a barbecue and they asked you what you do, would your answer make their eyes light up or glaze over? Would it make them ask for more details, or hurriedly excuse themselves to grab another burger?

Franchises are consistently vulnerable to cash flow issues thanks to the many mandatory expenses they face all throughout the year. On top of operational expenses and growth-related investments, franchises must obey the fee guidelines of their parent company, or “Franchisor.” Royalty and advertising fees are deducted from weekly or monthly sales. Some franchise owners must pay for new employees to undergo special training programs. Certain upgrades might be required for specific dates, and the national marketing campaigns that come from the aforementioned deduction must usually be supplemented by local advertising.
More than anything, focus on consistent, repetitive branding. Many marketing professionals believe in the “rule of seven," which means people need to hear or see your message at least seven times before taking any action. In today’s world of constant connectivity, you must make sure you’re seen and heard. The most common reason that people do not buy your product is that they do not know about it yet.
Starting a small business doesn't have to require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. Put together a spreadsheet that estimates the one-time startup costs for your business (licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, trademarking, grand opening events, property leases, etc.), as well as what you anticipate you will need to keep your business running for at least 12 months (rent, utilities, marketing and advertising, production, supplies, travel expenses, employee salaries, your own salary, etc.).
If only everyone could feel the joy in my heart! I just got approved for a mortgage loan of $195k and it is third or fourth time that I get denied. My credit scores was about under 700 but more than 650 until i was introduced to a credit score expert by my friend that had similar issues. I paid him a little token and behold he fixed my scores to 788 just in 5 days. Words can barely express the way i feel about this but it is the most amazing experience in 2017. I can not keep this to myself at all, so for everyone out there with the same problem all you need to do is send this professional an email stating what you want and be sure to give testimonies about his services as well. Here you go ( computerworm . hacker (@) hotmail . com )
Shelton advises entrepreneurs to apply for a larger loan once they have the numbers to prove that they are growing: “What you’re hoping to get from these smaller loans is traction,” which you can use to “pitch [your story] as a growth story” when you apply for a larger traditional loan from a bank. Proving that you have experience growing your business from someone else’s money will help you convince the bank that you can do the same with their loan.
If you’re like the majority of new startups, cash flow will be your primary concern. You can have the best business plan in the world, but it won’t be of any use if you don’t have the money to keep the lights on while you’re getting your feet on the ground. With this, it’s important to know what resources are available to make the initial growth period a lot easier.

You also will need to file certain forms to fulfill your federal and state income tax obligations. The forms you need are determined by your business structure. A complete list of the forms each type of entity will need can be found on the SBA website. You can also find state-specific tax obligations there. Some businesses may also require federal or state licenses and permits to operate. You can use the SBA's database to search for licensing requirements by state and business type.
Often times, a franchisee looking to open their first franchise will fit nicely into a Small Business Administration (SBA) loan product. SBA loans are made by banks or other participating lenders - not the government. SBA loans allow the lenders to extend credit to borrowers, who they may not be able to lend on a conventional basis, by taking advantage of a guarantee that the SBA provides to the lender in the event of default. There are a few different options, but the Flagship SBA 7a product gives the bank a 75% guarantee if your loan defaults - so that the money that the bank lends to you is not entirely at risk. SBA loans are typically priced at Wall Street Journal Prime + 1 to 2.75%, for terms of 7 to 25 years, depending on the use of funds.
If you do decide you’re going to need space, consider the number of employees you’re going to need and the equipment that will fill the space—chairs, photocopying machines, a fridge, a coffee machine, a reception area, a meeting room, and so on. Furthermore, how quickly do you expect to grow? If rapid growth is in the books, rent a space where there is room for growth and so that you don’t have to change your business address.
The strength of your personal credit score has a direct correlation to the amount you are looking to borrow. The greater the amount, the more important the score will affect the decision by the lender. Because what does the credit score indicate? It shows the ability to keep an individuals finances tidy. There are extenuating circumstances, like health challenges or horrific student loan stories and some lenders may be willing to consider your personal credit challenges if you are up front and have all your documentation available backing up your story.

3. Office Space. Even if 52% of all small businesses are home-based, that does not mean you need to look like you work from your home. Customers looking at an office address can usually tell the difference between a professional address and a home address. Also, if you’re meeting with clients, you’ll project a more professional image if you meet in an office setting versus a home office. For this reason, consider signing up with a fractional executive office service.
We also specialize in opening new franchise locations. Some of our franchise clients have used franchise financing to cover franchise fees, pay for new equipment upfront, or prevent weekly deductions from damaging profits during slow or busy periods. Franchise financing can act as a cushion for monthly expenses and make it possible to grow existing locations on schedule after opening new ones.
Sometimes it makes sense to tap 401(k), Individual Retirement Account or other retirement funds rather than seek a loan. But rather than just taking an early withdrawal, which may be subject to taxation, you may want to consider setting up a C corporation that will own and operate the business. Then roll over money from your self-directed retirement account into that corporation’s profit-sharing plan and direct that those funds be invested into the franchised business. But this is a risky option: If the franchise fails, your retirement fund can be wiped out. Check with a professional on possible tax implications, and consider the tradeoffs carefully.
A contract is, in essence, a written meeting of the minds. While it is typically drawn up by one party and favors the needs and requirements of that party, protecting them from most (if not all) liabilities, it should initially be thought of as a work in progress that changes and grows as each party contributes prior to signing, after which it becomes an official document. “Consideration,” whether it is monetary or a promise to do work or provide a service by a specified date, is at the root of a contract.
Whether you're starting an online business or a brick-and-mortar model, figuring out how to start a business takes time and research. Starting a business involves planning, making important financial decisions and completing a series of legal activities, such as choosing a business structure. Before you can decide how you want to structure your business, you need to know what your options are. Each business structure has advantages and disadvantages, and choosing the right one depends on your unique situation. The most common ways to organize a business include, limited liability company (LLC), corporation, nonprofit corporation, partnership, limited partnership, limited liability partnership, and sole proprietorship. LLCs are a popular choice for small business owners because they offer personal liability protection with great tax and management flexibility, while incorporating a business protects your personal assets and is preferred by outside investors. LegalZoom has all the resources you need to start a business and maintain it. Whether you want to form an LLC or trademark a business name, LegalZoom offers services to help you get it done fast and affordably. LegalZoom can also help you obtain the necessary business licenses and permits for your new business. Get the peace of mind you need when starting a business by letting LegalZoom take care of the details while you focus on the parts of your business that matter to you the most. 
By the end of this lesson, you will be able to manage all of your downloaded banking transactions. You will also understand how to enter basic banking transactions manually. Finally, you will be able to use the reconcile tool to ensure that the transactions on your bank statement match up with what has been entered into QuickBooks. This will result in up-to-date financial statements.

Ideally, your business will operate long enough and become successful enough that the company will get its own credit score and be able to qualify for a loan on its own. Building a business credit score requires your company to establish its own identity, including having its own tax ID number or employer ID number, obtained from the IRS. You'll typically also need a business credit card in the organization's name that's always paid on time.  
There are infinite sources of financing available to help you launch the franchise of your dreams. However, operating a franchise with no reserves and blinding yourself to unexpected business problems can lead to disaster. A good rule to remember: Never invest more than 75 percent of your cash reserves. If you have $10,000, invest $7,500. If you have $25,000, invest $18,750.
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.

Remember that a business is franchised for two reasons: to expand the business and to raise capital. So if you have a reasonably good credit record and pass all the financial requirements, most franchisors will bend over backwards to get you on the team. The help that franchisors provide to help you get financing usually includes assistance with business plans and introductions to lending sources. In many cases, franchisors serve as guarantors of loans you take out.
Repairs, improvements, and replacements. Be aware of a clause that says that at the end of the lease you must restore the premises to their original condition. Try to negotiate a clause that states the following: “The premises will be returned to the Landlord at the end of the tenancy in the same condition as at the beginning of the tenancy, excluding (1) ordinary wear and tear, (2) damage by fire and unavoidable casualty not the fault of the Tenant, and (3) alterations previously approved by the Landlord.”
To ensure success for both entrepreneurs and investors, Plum Alley requires businesses that crowdfund to secure at least 30 percent of their goal during a one-week “private” campaign before opening the crowdfunding to the public. This ensures investors that the business already has some financing, making it more likely they will reach their goal since research indicates that businesses who get 30 percent of their funding goal within the first 48 hours of crowdfunding have the most success.
A contract is, in essence, a written meeting of the minds. While it is typically drawn up by one party and favors the needs and requirements of that party, protecting them from most (if not all) liabilities, it should initially be thought of as a work in progress that changes and grows as each party contributes prior to signing, after which it becomes an official document. “Consideration,” whether it is monetary or a promise to do work or provide a service by a specified date, is at the root of a contract.
Traditionally, the first place franchisees turn for financing is the franchisor. Almost all U.S. franchisors provide debt financing only. Some carry the entire loan or a fraction thereof through their own finance company. We found fractions of 15 percent, 20 percent and 25 percent, all the way up to 75 percent of the total debt burden. The franchisors we talked to emphasized that these figures are simply guidelines and not hard and fast limits.
In Canada, you can get a free credit report by contacting one of the two credit reporting agencies, TransUnion or EquiFax Canada. To receive your free credit report you will need to mail or fax one of these companies a request along with copies of two pieces of I.D. Note that you will not be able to get a free credit report through the website of either company; you will be charged a fee for an online report. CreditKarma provides free online credit reports through much of Canada.
If you can secure a credit card in your company name and make purchases and on-time payments, you can get financing and start building good business credit at the same time. Of course, the credit limit, interest rate, and terms of payment will vary, and each bank or credit union will have eligibility requirements, so this option will not work for everyone.
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