Want to find business backer (leasing, loan, liability insurance, small business)

[laurbell]

I have been a hairstylist for 18 years and I have worked for most of those years at a Chain salon. I love the clients, Ive done the whole booth rent, and I like to cut mens hair and not rely on appt. But I need to get away from the coorporate crap, How hard is it to find a backer to open a francise and where should I begin? I have parents that are pretty well off, but they cant just give me money. Could I get a loan with a co-signer? I just need a start or direction.

[allforcats]

Have you discussed with your parents THEIR co-signing a loan with you? Having as a "business partner" someone you know very well and trust, assuming they they also trust you, would remove a vast amount of worry about a stranger-partner, which could sap the energy and joy of someone creating a new path in life. How do you feel about that idea?

Know that whatever path you choose, the Universe will always show you the best it has to offer you from that path. I wish you joy!

[Buckhead_Broker]

You may be a great stylist, but are you a great business person? That is what a financier is going to look at. Just like chefs who open restaurants and fail, you have to understand how to run a profitable business to attract investors.

[StealthRabbit]

go see a SCORE person... retired business people volunteering with SBA (offices in most medium sized+ areas)

They offer lots of advice and can help with your logistics.

There is a ton of paperwork to running a business and I would recommend you 'sub-contract' that out for awhile so you can concentrate on building your clientèle within your skill set. It is a bummer to get into trouble with the state or IRS because you forgot some little thing.

Write a business plan, detail the tasks and determine who can best do them. Remember the extra expenses such as leases, Liability insurance, licensing, Business taxes (B&O), workman's comp, advertising. I would recommend owning a building and leasing most of it out to eventually give you 'free' space. The real estate value may likely grow to exceed your business earnings, and when you retire you can live off the rent, as the building will be paid for.

[golfgod]

How hard is it to find a backer to open a francise?

Generally money for this comes from people who love you. "Business" people are in business to make money. That does not mean taking a flier on someone who has no "skin in the game"

How much money are YOU putting up?

Why a franchise? A really effective franchise is as much a "corpoate" operation as a big corp. For the reason that THEY KNOW WHAT WORKS. That doesn't mean that YOU'LL make more money, just be in a different corporate structure WITH A LOT OF DEBT.

Why not check out your competition for someone who's close to retiring and see about buying in? Why not look for a rental building and develop your own (franchise) identity. I had a friend do this 15 years ago and she now OWNS (no longer supervises day to day) a 30 chair salon. No franchise, just her business plan.

I'd be looking at my (aging) competitors. You'd get an established location, identity, and client list to build upon. Instead of starting from scratch with a lot of overhead.

Good luck in your venture

golfgod

[sgresident]

If you live near a community college, many have small business assistance counselors(I know that the one near us does). this is usually without a charge and they would be able to give you some good info and point you in the right direction. I know that they help right business plans etc. When a flooring business opened in our town, the business rep from the college was at the ribbon cutting event.

[Rapture]

Originally Posted by janb

go see a SCORE person... retired business people volunteering with SBA (offices in most medium sized+ areas)

They offer lots of advice and can help with your logistics.

There is a ton of paperwork to running a business and I would recommend you 'sub-contract' that out for awhile so you can concentrate on building your clientèle within your skill set. It is a bummer to get into trouble with the state or IRS because you forgot some little thing.

Write a business plan, detail the tasks and determine who can best do them. Remember the extra expenses such as leases, Liability insurance, licensing, Business taxes (B&O), workman's comp, advertising. I would recommend owning a building and leasing most of it out to eventually give you 'free' space. The real estate value may likely grow to exceed your business earnings, and when you retire you can live off the rent, as the building will be paid for.

I second this advice. SCORE gives free advice and I have used them many times with my business questions. If you make an appointment, ask if there is someone that can advice you specifically about what you're looking to do. It makes a big difference if the person giving advice has already been there, done that. You have to do a business plan, research etc...Good luck