Show Me the Money
Almost without fail, the first question that all first-time, wannabe franchisees ask is, “How will I get the financing?” For someone looking to fulfill their dream of business ownership, the road seems paved with obstacles, not the least of which is where the money will come from to fund their business. The good news, for those interested in opening a 9Round, is that there is a team of experts to guide them through the process, from securing funding to negotiating a lease, pre-sell marketing, and more.
If you’re exploring the idea of becoming a business owner, there are a few things that you can do to prepare for the process of acquiring the funds to finance your dreams.
DO YOUR HOMEWORK
Your ability to secure a loan greatly depends on how well you present yourself and your company to prospective lenders. You’ll be expected to know every detail of your proposed business, backward and forward, inside and out. There are several business and personal documents (some mentioned here later) that you will be required to provide, the sooner you start preparing, the better.
The next step is to seek out lenders active in small business financing. Look for lenders that routinely make the size of loan you need and who have some familiarity with your industry and geographical area. If your current bank fits that criteria, it's a good idea to start where you already have an established banking relationship. 9Round also has several lending partners qualified to help prospective franchisees secure funding. See a full list and learn about loan pre-qualification with one of 9Round's lending partners here.
PUT THE SBA TO WORK FOR YOU
The Small Business Administration (SBA) is a federal agency that provides management and financial assistance to small businesses. The SBA Franchise Registry is a prestigious national online listing of approved franchise systems whose franchisees receive accelerated loan processing through their lender and the SBA. 9Round has completed the rigorous process of becoming an SBA approved franchise, thus giving franchisees access to expedited loan processing and outstanding customer service.
GET YOUR FINANCIAL STATEMENTS IN ORDER
A prospective lender will look at the financial statements you provide within your business plan. The lender will likely want to see personal financial statements for you and each partner in the business, if any. This can be the most time-consuming (and sometimes overwhelming) part of the process. It's advisable to work with a CPA or other qualified financial consultant to create these statements.
PREPARE A BUSINESS PLAN
The importance of a solid, up-to-date business plan cannot be overstated. When you apply for a loan, you will need to provide prospective lenders with a business plan that includes detailed information about yourself and the company. This is another area where 9Round’s years of expertise in franchising go to work for prospective franchisees. A "plug and play" business plan and other documentation relating to the business are provided to help in securing a loan. All that's left for you to do is take a page from the Jerry Maguire playbook and tell lenders to, "SHOW ME THE MONEY!"
The road to business ownership is tricky, and sometimes overwhelming - albeit rewarding. Learning as much as possible and enlisting the help of qualified professionals is very helpful in navigating it successfully. 9Round helps potential franchisees develop a roadmap to business ownership, providing resources and support that can only come from years of experience. For more information on owning a 9Round, including the financing process, please visit the website at www.9round.com/fitness-franchises, and fill out the contact form to get in touch with a 9Round Development Representative.