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I have my eye on a franchise and I'm going to need somewhere between $15,000-$20,000 extra to fully fund it. These smaller loans can be pretty tricky.
I've heard of the UBLOC, but I'm having a hard time finding places that actually offer one. Anybody know of a place other than Diamond Financial?
I've also heard of angel investors and I will try my luck in that area. If anyone has any tips, let me know. On the plus side, franchises have a much higher success rate and a sound business plan. I'll also have some skin in the game. On the minus side, would angel investors find a franchise too boring?
Anyway, on to the crazy idea. Could I just fund the extra with a business credit card? I know the interest rates will be insanely high, but I've found up to 15 months at 0% APR. I would expect to be profitable by the second or third year. I know this isn't an ideal situation, but if it's the only way is it better than nothing?
I would need an EIN to obtain a business credit card. Could I just start an LLC and call myself a venture capital group or an investment firm or something? Would it be illegal to invest in my own franchise? I would essentially be giving myself a loan. Doesn't seem right.
Is there a way to operate the franchise as an LLC? Do most franchise owners operate as sole proprietors?
If your going into business for yourself you better have at least 1 years worth of capital to back you up. Most business's fail in the first year so be ready, your first year is the hardest financially and personally. As far as getting private funding alot will be based on your business plan and your projections of profitability and how fast you can get there.
There's nothing wrong with putting the franchise into an LLC. You don't need a second layer of LLC (i.e., an LLC to get the credit card to loan money to the other LLC). You're not going to get a business credit card without personally guaranteeing the debt, so forming an LLC just for that isn't going to help you much.
I think this is really nice idea going for franchise business. Have you decided your niche area in which you are going?
As Franchise business is less risky than traditional business, You just needs to be focused to your area and you will get success in franchise business.
I have my eye on a franchise and I'm going to need somewhere between $15,000-$20,000 extra to fully fund it. These smaller loans can be pretty tricky.
I've heard of the UBLOC, but I'm having a hard time finding places that actually offer one. Anybody know of a place other than Diamond Financial?
I've also heard of angel investors and I will try my luck in that area. If anyone has any tips, let me know. On the plus side, franchises have a much higher success rate and a sound business plan. I'll also have some skin in the game. On the minus side, would angel investors find a franchise too boring?
Anyway, on to the crazy idea. Could I just fund the extra with a business credit card? I know the interest rates will be insanely high, but I've found up to 15 months at 0% APR. I would expect to be profitable by the second or third year. I know this isn't an ideal situation, but if it's the only way is it better than nothing?
I would need an EIN to obtain a business credit card. Could I just start an LLC and call myself a venture capital group or an investment firm or something? Would it be illegal to invest in my own franchise? I would essentially be giving myself a loan. Doesn't seem right.
Is there a way to operate the franchise as an LLC? Do most franchise owners operate as sole proprietors?
im sure the franchise has a district manager that can answer most any question- read the fine franchise print- see what and where all the fees are
also be sure to talk to an objective accountant before taking the full jump
do a business plan/pro-forma, and be realistic with sale projections
talk to other franchise owners- ask the questions
ask the tough questions- what franchise has closed recently and why(if any)
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