There’s something about being your own boss that appeals to many people. Running your own business is a great choice for people who seek independence and like to see the direct results of their own hard work. But starting a new business is also risky and, for first-time business owners, can be a little overwhelming. Opening a franchise offers the best of both worlds. Franchise owners reap the benefits of owning their own business while taking advantage of the tried-and-true formula of a well-developed business model. If you have a background in healthcare, opening a healthcare franchise can be a great way to continue working in healthcare while owning your own small business. One hurdle that can intimidate many new franchise owners is raising the capital to finance the franchise. Fortunately, there are several different options for financing your franchise and setting out as your own boss.
Financing your healthcare franchise is expensive, but don’t think of it as a burden. Think of it as an investment–an investment in your future, in your retirement, and in your community. The cost associated with financing your franchise provides you with the knowledge and training to start your business and keep it going.
While it might seem a little scary to use the money you have set aside for your retirement, remember that opening a franchise is actually an investment in your retirement. In most situations, there is a penalty fee for making a withdrawal from a 401(k). However, there is no tax penalty for withdrawing money from a 401(k) in order to start a C Corporation. Consult a tax attorney or CPA for assistance in setting up your C Corporation and rolling over your 401(k).
SBA loans are a great option for small business financing. After all, supporting small businesses is the purpose of the SBA! These loans frequently have low-interest rates. Your local SBA office can help you navigate the application process.
If you own your own home and have built up home equity over the years, consider a home equity loan or line of credit for financing your franchise. Borrowing against your house is especially attractive if you live in an area with a strong housing market.
Borrowing from family or friends can be awkward or risky, but it is actually a fairly common way for small business owners to raise funds when they are starting out. Traditional lenders can be leery of lending money to a business that has no proven track record. If you choose to ask friends or family for a loan, treat the loan just as you would if it were from a bank or any other lender. Carefully consider the terms of the loan. Write up a formal loan agreement, including interest rates, monthly payments, and the date when you will finish repayment. Discuss whether or not the friend or family will own a percentage of the business or expect any returns from it. Careful planning now can prevent arguments or damaged relationships later on.
Take the first step toward opening your healthcare franchise by contacting A Better Solution in Home Care today. Opening your own home healthcare franchise is a dream within reach. Our team is ready to work with you, every step of the way.