Financing a franchise of your own shouldn't be that tough. It should be relatively painless, if you know what to do, and in what order....
1. Have a real business plan. There is terrific Business Plan Software to use, and/or enlist the help of a CPA, or other financial expert. Local Small Business Development Centers are another great source.
2. You should approach your personal bank. You have a built-in relationship with them, financially. See if they are eager to help you with lending options. Ask if they are an SBA Preferred Lender.
3. Fill in all applications thoroughly. Put a lot of detail into them. If you are not detailed enough in your paperwork, the lender may not feel you are able to handle the details needed to run a business. {Makes sense, doesn't it?}
4. Be realistic in your expectations concerning income projections. It is better to be a little conservative in your projections. If you end up doing better, fantastic.
5. Put yourself in the lender’s shoes. Would you loan money to you for a business? This approach will help you “sell” the plan to the lender. {Actually, if your business plan is really strong, very little selling should be needed.}
6. Don’t give up too fast. It is not unusual to get turned down at first.
Go back, and see what is missing. Work with a financial professional and submit your application somewhere else. There are lots of choices.
7. Don’t be too hard on yourself. Remember you are “learning”. Patience is a virtue at this stage of your new business start-up.
