Franchise opportunities are growing because the franchise business is on a roll! According to the International Franchise Associaiton and FRANdata, the environment for franchising businesses has constantly grown for the past three years and there’s no sign of it stopping in the near future.
Reports show that the demand for new lending capital is at $11.7 billion and franchise financing is at a close $9.5 billion. And the gap between these two continues to shrink from 2010 to 2012. Bank projections also indicate that there will be an increase in demand for franchise financing. People are now aware that investing on franchise opportunities make money faster compared to putting up a new business and introducing a new brand in the market.
Jon Luther, IFA chairman, says that franchising growth has created a lot of jobs in many locations. This is helping the economy of that region.
It would take about $30,000 to put up a new business from scratch, according to the Business Finance Store. And the risks are even higher if you’re building everything from the ground up, including a good reputation for your brand name. This is why a lot of entrepreneurs are turning to franchising instead. Some franchises, some even real good ones, can start with just a few thousand bucks.
One good example is a homebased franchise opportunity that can get started with just $1,500. The benefits are just the same as putting up your own franchise retailing business but minus several overheads. You will get noticed through brand recognition; this is how franchisees get success faster compared to new brand names in the market. You won’t need to pay for equipment, monthly staff salary, rent, and other expenses. You can easily do this in the comforts of your home and it’s a one man show. If you’re internet savvy then this is an ideal opportunity for you.
For those who want to roll up their sleeves and be more hands-on with their business can invest on franchises such as the Soccer Shots. Their business is all about soccer development programs for kids who are 2 to 8 years old. They’re start up investment is only $13,395. It’s not even half of what you’ll normally need in a startup biz.
The good news is, lenders now recognize that franchise businesses know how to make money faster that’s why a lot of lenders have opened up doors for entrepreneurs who want to venture into franchising. Some entrepreneurs haven’t even realized that financing a business with retirement funds is an good option.