It seems like everywhere you turn these days, someone is launching a startup and praying that it’s a unicorn, like Facebook or Uber. It’s the age of the entrepreneur, and it’s an exciting time to be alive if you have big business ideas. With that being said, not every startup will make a profit. Actually, most small businesses fail within the first five years, leaving the entrepreneurs who launched them without much to offer the lenders who backed the project.
How can you make sure that your startup is a success and even see some serious profit margins sooner rather than later? One part of it is pulling yourself up by your bootstraps, but another part is hedging your bets in a smart way. Did you know that you don’t have to start a small business from scratch to be a business owner? It’s true. Franchisees are business owners, too, and they have an easier time getting venture capital for their projects. If you’re considering getting into a franchise, here are some reasons why that’s a great idea for a successful startup.
It’s easier to find lenders to cover cash flow.
The first and most important, reason why it’s a good idea to be a franchisee is simply that it’s easier to do. Lenders, whether traditional financial institutions, the SBA (Small Business Administration), or other lenders are more likely to back your project because it’s not a brand-new concept. Many startup entrepreneurs spend ages searching for an angel investor in the early stages of a startup, while franchisees can turn to dedicated franchise revenue loans to get off the ground. This means that you don’t have to put as much of your own money into the launch, and you can still be the founder of your own business. That’s not to say that starting a small business that’s a franchise isn’t hard work—it is. It just means it’s easier to get a leg up on your startup.
You can rely on the wisdom of the franchisor.
You’re not starting from scratch, and that’s great for a lot of reasons. The franchisor has already figured out a business plan that works. They have a successful business. You’re just joining the party, and you can rely on the wisdom of the franchisor to serve as a compass. Instead of perusing a guide to bootstrapping a business, you can leave your bootstraps where they are and learn from the playbook the franchisor gives you when you buy into the business.
There are tools to keep your own business safe online.
If you’re concerned about online safety for your new business, that’s good. There are far too many crooked folks online just waiting to steal sensitive information from you and your customers. Any advisor would tell you that investing in IPv4 addresses will keep you safer than relying on the IP address that comes with your laptop. Actually, the most updated IP addresses are IPv6, but IPv4 addresses are still in high demand—as long as they’re scrubbed clean. When you buy an IP address for your business, it’s like owning your startup office space instead of renting it—it’s just more secure. It’s worth spending money on the kind of security you can buy with an IPv4 address block.
Starting a business will take hard work and a lot of money. That’s just the way it goes. However, you don’t have to go the hardest route and put all the business cash flow on your credit card. Be smart. Turn to a dedicated franchise lender, and get a business loan to make your entrepreneurial dreams come true.