“I feel the need…the need for speed!”
-Maverick and Goose, Top Gun (1986)
It’s not every day that an iconic movie has direct correlation to franchise funding, but hear me out. Top Gun is one of my most favorite movies of all time. The action, the danger, the emotional roller coaster between Maverick and Goose, Maverick and his MIA dad, Maverick and Charlie…well, you catch my drift.
Franchise funding has all the ups and downs of elite flight training, especially the need for strategy, execution, and speed. You wouldn’t send a sub-standard fighter pilot into battle, nor would you ask a novice how to fund your franchise.
Enough with the metaphors. Let’s get down to brass tacks (okay, one more).
Strategically speaking, franchise candidates have a myriad of funding options available to them. Some are certainly more preferable than others due to less risk, more availability, less restrictions, and the like. We always encourage our clients to begin with the end in mind. You won’t always be a franchise owner. One day you’ll want to sell your business, or your heirs will either operate or sell your business, so what decisions can you make now to positively impact the future?
- Plan for enough working capital for the first two years of your franchise agreement
- Don’t overburden yourself with excess debt lest you stifle growth
- Discuss your exit strategy with your franchisor, co-owners or any investors, and your family
Execution of your strategy becomes paramount to success. A sound business plan; the processes and procedures of your franchisor; your operating playbook will become your best friend. Study it. Absorb it. Follow It. Repeat.
Lastly, and most importantly, when trying to get your franchise off the ground, first start by putting a little fuel in the tank, namely pre-qualify for your funding options. Much like a realtor will recommend pre-qualification for a mortgage, a business purchase should very quickly, if not immediately, be a financial match with your qualifications.
Tenet Financial Group is ready to be your wingman. We excel at strategic execution of funding opportunities for entrepreneurs in hundreds of industries. And, as for speed, our team can help you fund your franchise in as little as four weeks!
Let’s join forces and see where the summer takes us!
Tenet Financial Group