9 out of 10 people make money from this business model… You should too!
According to Bloomberg, a whopping 8 out 10 new businesses FAIL in the first 18 months.
But there's a special kind of business model that has a 90% chance of success.
Here's how you can be a part of the right statistic…
A fundamental reason why ordinary start-ups fail is because they go into it alone. The lack of expertise, experience and funding ultimately cripples these entrepreneurs.
But there's a way for you to be in business for yourself, but not by yourself. I'm talking about franchising of course! The truth is a franchise has a 90% chance of success!
Find the franchise that suits your personality
Before you even think of owning a franchise, you need to know yourself.
This means you need to understand your interests and talents.
You should ask yourself the following questions:
1. What are you good at?
Look at your skill set. Think of all the things you’ve done throughout your working life and what work you’re comfortable with.
2. What type of industry or business are you passionate about?
It’s extremely important that you believe in your business and its product. For example, it’s no good starting a burger joint if you’re a vegetarian… It just won’t work.
How to get your franchise up and running quickly!
Remember, 90% of franchises are a success. This gives you a huge advantage if you need a loan to start one.
You see, the banks know this success rate too.
It’s much easier to get finance for a franchise compared to a normal start-up.
Before you approach the bank for a loan, there are a few things you need to do.
Firstly, you need to make sure your own finances are in good condition
. A bank’s no going to whip out its cheque book for a new business if you can’t keep your own house in order.
Secondly, you need to get approval from the franchisor
– Otherwise you’re just wasting everybody’s time. You can do this when you’re researching the franchise you want.
Thirdly, you need to get all the right documentation required by the bank
. This includes your personal financial information and comprehensive financials for the business like forecasts and a sound business plan.
I found that Standard Bank and Nedbank have great resources when it comes to providing finance. Typically you’ll pay about 30% to 60% of your own cash for your franchise and the bank will give you the rest.