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!

Data as of March 2017. Comparison of longest average store hours in the regions (MSAs) in which TD Bank operates compared to major banks. Major banks include our top 20 national competitors by MSA, our top five competitors in store share by MSA and any bank with greater or equal store share than TD Bank in the MSA. Major banks do not include banks that operate in retail stores such as grocery stores, or banks that do not fall in an MSA.

Short-term loans like the ones offered by OnDeck have higher rates and fees compared to longer-term loans. Effective interest rates start at 9.99%, and if you have a newer franchise and/or poor to fair credit, your rate will likely be higher than that. Nevertheless, OnDeck is one of the few reputable sources of short-term, unsecured business loans offered to franchise owners, and also one of the fastest. OnDeck is additionally one of the few online franchise lenders willing to lend to applicants with poor credit.
The second part of the balance sheet is liabilities. Follow the same steps. List your current bills, all your charges, your home mortgage, auto loans, finance company loans and so on. Subtract your liabilities from your assets. Once you've worked up this sheet, take a good look at your credit rating. There are three common ingredients that all potential lenders look for in a credit rating: stability, income and track record.
Reviewing the brands franchise disclosure document (FDD), speaking with existing franchisees and financial professionals, in conjunction with support from the franchisor, will help you formulate your business plan and build financial projections. Outlining your management and marketing skills, past successes and future goals by including resumes for yourself, planned partners and other employees will allow all parties involved, from the franchisor to lenders, to understand the strengths of the ownership and management team. Personal credit history and financial strength will also play an important role in opening a franchise business.
But even if you’re not an internet startup or these techniques don’t feel right to you, you can still take steps to get money coming in quickly. If you run a service-based business, you can structure contracts so that clients have to pay a certain amount up front or at agreed milestones, instead of all at the end. With long-running projects, this can make a big difference to your cash flow. You can also offer special discounts and limited-time offers for people who sign up as early customers.
SmartBiz (see our review) is a viable online loan option for franchise owners that want the security and low-interest rates of an SBA-backed loan, but with the ease and speed of an online loan. SmartBiz is the #1 marketplace for SBA 7(a) small business loans online, offering an SBA/online loan hybrid with low interest rates and long-term repayment terms. However, this lender is only an option for established franchises — you’ll need at least 2 years’ time in business to get a working capital or debt refinancing loan, and 3 years to be eligible for a commercial real estate loan.
A well-thought-out business plan can make the difference between having your loan application accepted or rejected. A complete business plan should always include an intimate, technical study of the business you plan to go into; accurate pro formas, projections and cost analyses; estimates of working capital; an indication of your "people skills"; and a suitable marketing plan. It should also include certified statements of your net worth and several credit references.
There is no one right answer to the question of how equity should be divided among a company’s co-founders. But everyone involved should discuss this issue and come to an agreement up front to avoid misunderstandings later on. If you are the original founder and brains behind the idea, a good argument can be made for more than 50% ownership. The split should take into account the following:

An investor looks for a more high-risk opportunity to get a higher reward and will put their money in established businesses that have the potential for high growth. Investors generally expect to be involved in the business in the form of a seat on the board of directors or some other role in which they have a say in how the business is managed. For the most part, investors want to get in on a company while it is in its early growth stage, and they get out once the business has reached a certain level of growth.

Also make sure you have a structured process for setting measurable objectives, reviewing your progress, and adjusting the objectives or setting new ones. A good way is to keep a simple monthly checklist of the most important items. All of this should be driven by your overall business plan (you do have a business plan, don’t you?), and you should use the data you collect to help you keep the plan constantly updated.

Many new franchisees will need to find financing in order to fund the startup costs of their business. Franchise financing options can include ROBS, SBA loans, crowdfunding, home equity lines of credit, and even raising money from friends and family. We’ll cover these options in more detail, but first let’s take a look at the summary of each option in the table below.
Some things we like about StreetShares include its excellent customer service, easy application, competitive rates, and speedy time-to-funding. You don’t even need to put up any business collateral for a StreetShares loan (though you will need a business guarantor who is willing to essentially “co-sign” your loan). Another thing that makes StreetShares special is that franchise owners who are also veterans and/or who have an interesting business backstory are preferred. See our StreetShares review to learn more about this alternative lending leader.
Opening up a franchise is a huge undertaking that takes no shortage of time and effort. Once you’ve done your homework to find a franchisor you want to work with, you’ll want to review the funding options available to get the ball rolling. When you’re taking out financing, be sure to work with a reputable lender, getting only the amount what you need.
Collaborating with more established brands in your industry is a great way to achieve growth. Reach out to other companies or even influential bloggers and ask for some promotion in exchange for a free product sample or service. Partner with a charity organization and volunteer some of your time or products to get your name out there. In this article, Business News Daily offers some suggestions for rapid growth.

Instagram is a social networking app that’s owned by Facebook. Instagram is available for free on Apple iOS, Android, and Windows Phone. The app enables you to upload and share photos and videos with your followers. A posted video or photo will be displayed on your profile where followers can view, like or make comments. Instagram has over 800 million monthly users which provide small businesses with a great opportunity to expand their customer base.


More Franchise Loans, More Franchise Launches, More Franchise Revenue. In today's economy many top franchises face a significant challenge: access to funding. With ample interest from entrepreneurs ready to open new locations or expand existing ones, the difficulty of accessing capital significantly slows the execution of opening such franchises, costing both the franchisee and franchisor time and money.
Small business line of credit. Under a small business line of credit, your business can access funds from the lender as needed. There will be a cap on the amount of funds accessible (e.g., $100,000) but a line of credit is useful for managing a company’s cash flow and unexpected expenses. There will typically be a fee for setting up the line of credit, but you don’t get charged interest until you actually draw down the funds. Interest is typically paid monthly and the principal drawn down on the line is often amortized over years. However, most lines of credit require renewal annually, which may require an additional fee. If the line is not renewed, you will be required to pay it in full at that time.
For these reasons, many franchise owners are turning to the alternative lending space for better financing options. Online lenders are generally more lenient in their borrower requirements and they also offer a much faster time to funding than traditional bank loans, often depositing funds in your account within a week of receiving your application.

We’ve touched on a lot of different topics, of course, and I’ve linked to more tutorials so that you can dig into the details in each area. I’d encourage you to read some of those tutorials to go deeper into the key subjects, and to subscribe to our newsletter (there’s a form down in the footer) to stay up to date with the latest business tutorials published here. We've got plenty more on the way!
Instagram is a social networking app that’s owned by Facebook. Instagram is available for free on Apple iOS, Android, and Windows Phone. The app enables you to upload and share photos and videos with your followers. A posted video or photo will be displayed on your profile where followers can view, like or make comments. Instagram has over 800 million monthly users which provide small businesses with a great opportunity to expand their customer base.

SBA loans are government-guaranteed loans with long repayment terms and low interest rates. There are many different types of SBA loans, but the most popular SBA loans are 7a loans and 504 loans. An SBA 7(a) loan can be used for working capital (marketing, staffing, etc), equipment, or for commercial real estate. The SBA 504 loan is only for commercial real estate and fixed equipment. Franchises are often a great fit for SBA loans, because of the SBA’s policy goals to help build small businesses to grow the economy.


The brand you choose to work with may provide upfront estimates of how much it will cost to start a new business and can also give you information on monthly and year-over-year revenue goals and expected progress. This information, if available, is often found in Item 19 of the FDD. However, a franchise is not required to provide this information in their FDD - so speaking with several existing franchisees is always a wise choice. Based on this data and your own projections make sure you understand when your business will break even factoring in both expenses as well as the loan payments and always assume there will be unexpected costs. When determining your loan amount make sure to include working capital to get you through the ramp-up period of the business until the business can support expenses and loan payments. When lenders review your loan application they will pay attention to several key things, but 2 items that you should be aware of are Loan To Value (LTV) and Debt Service Coverage Ratio (DSCR). LTV is a measure of the total value of the loan amount compared to the collateral pledged. Lenders will look at the collateral as a secondary source of repayment of the loan and in many cases with a start-up financing may look for collateral to cover the full loan. In cases where there is not enough collateral the lenders will look to other strengths of the deal. DSCR is a measure of the cash generated by the business available for the loan payments. The higher the DSCR, the better because in the bank's view there will be a cushion of cash just in case there are unforeseen problems or slow periods for the business. A lender will typically look for a minimum DSCR 1.20x or more. If your projections don't show the ability to service debt lenders may shy away from your loan request so it is important to understand the accuracy of your projections.
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.”
Ideally, your Instagram profile picture should be an image of your logo and be the same one displayed on your website and other social media platforms. For the mobile app, your profile picture should be a minimum of 110 pixels width x 110 pixels height. Your picture will be shown in a circle, so your logo has to be clear when cropped. Have a look at how Deputy’s logo is clearly displayed on our Instagram account.
In this article we’re going to discuss how you can finance the purchase of a new franchise. We’ll discuss where to find franchise financing and what you need to consider before jumping in. We’ll also give you some options to think about if you actually need working capital financing for your existing franchise. Before we dive in, let’s take a quick look at your two best options for franchise financing.
If you have all of the answers above, and are still unsure of what to do then we suggest working with your franchisor to find the best option for your new business. This can be the best place to start when searching for franchise financing, because they’re very experienced with where other franchises like yours have gotten their financing from.The franchisor also has a vested interest in you being able to purchase the franchise and will often provide some kind of help.
Franchise fee: Most companies charge an upfront fee to start a franchise, paid in a lump sum or installments. The amount varies by company, but it’s typically tens of thousands of dollars and usually is not refundable once a franchisee is accepted. For example, Jamba Juice charges $25,000 per store, and Hilton Worldwide charges $75,000 to start a 150-room Hilton Garden Inn.
Starting a business involves a lot of moving factors, but the most important one is financing. You are going to need to spend some time evaluating your business model and writing your business plan before you can really determine the type of loan you need and the best way to secure that loan. As your business grows, your lending needs will change, so take the time now to understand the differences between lending and investing so you can be ready when your company starts to grow and needs to adjust its financing.
Direct online lenders. There are a number of online lenders that make small business loans through a relatively easy online process. Reputable companies such as Swift Capital provide very fast small business cash advances, working capital loans, and short-term loans in amounts from $5,000 to $500,000. Sites such as Fundera and LendingTree offer you access to multiple lenders, acting as a lead generation service for lenders.
Lenders prefer financial statements that have been audited by a certified public accountant (CPA). But many small businesses don’t want to incur the costs of an audit, so one alternative is to have the financial statements “reviewed” by a CPA (which is cheaper and faster). However, some lenders may not require either audited or reviewed statements.
The first thing you want to do before approaching any lender is determine what your net worth is. To do this, use a personal balance sheet to list both your assets (what you own) and liabilities (what you owe). Under assets, list all your holdings--cash on hand, checking accounts, savings accounts, real estate (current market value), automobiles (whether paid off or not), bonds, securities, insurance cash values and other assets--then total them up.
How do so many small businesses get started? It all begins with the right type of financing. Whether you're just starting up or you're expanding your existing business, you need money to get rolling. This guide will help you figure out the type of loan you need for your business and will look at the step-by-step process of securing a business loan:

Although you’ll often need to make a specific financial commitment and meet certain regulations to open a franchise, there’s a lot you get in return. You’ll get the built-in name recognition that brings customers in, as well as guidance on everything from hiring to keeping local regulators happy. Before you get started, there are a few important things to know.
The Louisiana Secretary of State, Louisiana Department of Revenue, and Louisiana Workforce Commission are working to make it easy for you to manage your Louisiana business filings and tax account registrations from one location―the Louisiana geauxBIZ portal. geauxBIZ can help you find resources to help plan, make key financial decisions, and complete legal activities necessary to start your business. You can also use geauxBIZ to produce a list of possible federal, state and local licenses and permits required for your business, to reserve your new business name, and to complete your new business filing. If you want to do business in Louisiana, visit geauxBIZ to get started!

Use your retirement accounts (401(k) or IRA) to invest in your business without having to pay early withdrawal penalties or taxes.  If you still need more money, this can be used in combination with a SBA loan.  The investment into your business may be enough that no collateral is required.  Even if collateral would normally be required, an alternative such as a payment reserve and be utilized.  Learn more about 401K business financing.
The franchise industry, like all businesses, was not immune to the economic crisis of 2008 and the ensuing credit crunch. But the vital signs of a recovery are there. According to the International Franchise Association (IFA), many of the country’s business sectors currently starting to show growth mirror those sectors expected to be the leading drivers of employment in franchising this year. These include food service, health care, hospitality and construction—all sectors with a high concentration of franchise businesses.
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