At Tenet Financial Group, we like to tell our clients that franchise funding is not “one size fits all.” Because of our deep knowledge base and experience, we can attest to this statement and actually create opportunities for franchise buyers to understand every available option through our consultative approach. By Jodi Rowell
At Tenet Financial Group, we like to tell our clients that franchise funding is not “one size fits all.” Because of our deep knowledge base and experience, we can attest to this statement and actually create opportunities for franchise buyers to understand every available option through our consultative approach.
Here are some of the funding-related considerations we recommend you ask yourself:
- How much cash in accounts (checking, savings, retirement) do I have?
- How much am I willing to invest or go into debt?
- What is my personal risk-tolerance level?
- Do I want to use equity funding (a 401(k) rollover) or debt funding (i.e. a loan) to capitalize my business?
- How quickly do I need funding?
- What is the term length for my franchise agreement?
- Do I want to grow this business beyond one initial franchise (multi-unit ownership)?
- What are my options when I am ready to exit/sell the franchise?
The answers to the above questions will help you make decisions – alongside guidance from your funding partner – to evaluate and choose the best funding option(s) for your unique situation. In many cases, a combination of funding methods can be used to fully capitalize a new franchise or even recapitalize an existing franchise. For example, many entrepreneurs will obtain an SBA loan and use a 401(k) rollover funding plan for their non-borrowed equity injection.
But, just like team jerseys, not everyone wears the same size. The team at Tenet Financial Group can help you choose the right funding fit, whatever your situation entails. Contact us to learn more.
For more small-business tips, visit the Tenet Financial Group blog at tenetfinancialgroup.com/blog.
– Jodi Rowell