Here’s How to Have Enough Funds for Franchise Opening Costs
One of the biggest hurdles of starting a franchise is getting the needed startup capital if you don’t have the funds on hand.
But don’t let this deter you from making a bold move into the entrepreneurial sphere. With proper planning, you can quickly get the money you need to open a franchise in the Philippines.
First things first, the cost of a franchise business is just one aspect that you need to take care of. That 200,000, for example, that you need to pay for a food cart can reach PHP 400,000 if you think about other expenses.
Areas where you can cut costs
Location - find a commercial space that doesn’t require sky-high rent. If you already own a space and it can be used for the business, go for it.
Paperwork - there are professionals who can help you with this for a fixed rate. They’ll help you avoid surprise expenses and the transportation costs that you’ll incur if you process all of the paperwork yourself.
Deals - watch out for them. From time to time, franchisors will offer great deals and add-ons. These are seasonal things so be on the lookout for them.
With that said, you also need to start saving up for your franchise as soon as possible.
Find out how much you need to save from your income in a given timeframe. Let’s say you need to save 400,000 for the next two years. So, calculate how much you need to take out of your pay to achieve your goals. Make sure you don’t end up starving yourself or sacrificing your basic needs.
Invest in corporate bonds/mutual funds
This is one way to save wisely, but it comes with a few risks involved. By investing, you can grow your money steadily and earn bigger interest amounts than you ever would in a bank. But stay away from high-risk investments, even when the earnings are bigger. Medium risk funds are a safer option.
Once your franchise gains ground, however, and you’re earning plenty, you can take risks with your investments.
If you’re franchising a well-known brand, you may be able to get a loan for a startup cost. So, do your research and analyze all your options and choose wisely.