Write-up by Stan Prokop
Canadian entrepreneurs continue to explore franchise acquisitions in Canada as a way to maximize on the enterprise opportunities provided by the franchise business. Entrepreneurs evaluate franchising since it gives them with an ability to generate sales and profits from established organization models – they can create equity in companies and take pleasure in the positive aspects (perceived or otherwise!) of self employment and entrepreneurliasm. As you commence to formulate your suggestions around purchasing a franchise the concept of how o you will finance your new company should be extremely close to the leading of your list. Numerous clients we talk view the actual financing of the franchise as the largest obstacle to achieving self employment success.The reality is that everyone with a reasonable organization and work background, coupled with a stable financial situation (good credit bureau history, etc) really should be able to successfully finance their venture. Is there a secret to franchise financing in Canada! Yes, there is, and don’t by surprised by the answer – which is merely that you should have a thorough and solid proposal in hand, and the appropriate individuals want to see that proposal. Regrettably that isn’t as straightforward as it seems.So how are franchises in Canada in fact financed? During the last couple years, due to the world wide economic slowdown/recession franchise financing became a smaller fish bowl so to speak. The approaches in which franchises had been financing in some instances actually disappeared, and in most circumstances just had the ground rules changed relative to whats required and how its works and how lengthy it takes. In Canada franchises are financed by, in most cases a government sponsored and subsidized loan that comes under a program known as the CSBF loan program. Additional a extremely select number of firms provide specialized franchise financing loans, and in our experiences we have complimented these two programs with fundamental lease financing of assets plus in most circumstances a working capital cash flow loan or an introductory line of credit to facilitate every day operations and lengthy term growth. So is there a key to success. Absolutely, and it starts with a solid executive summary and business strategy that has some reasonable financial projections and assumptions attached to it. The simple elements of that document are the business description, an overview of the simple organization model and industry, monetary projections, and a focus on the strengths of your business and its expectations of profits. Those profits will of course be money flow to repay your franchise loan and debt.We suggest to all clients considering and entrepreneurial career as a franchisee in Canada to discuss your franchise financing options with a credible and experienced advisor in franchise financing. Keep your financing objectives at the really leading of your list early on in your procedure, strategy well, and present your proposal as soon as, and correctly. You will soon be en route to a productive new company with sales and profit growth!
About the Author
Stan Prokop is founder of 7 Park Avenue Monetary. Originating financing for Canadian companies, specializing in working capital, cash flow, and asset based financing, the 6 year old firm has completed in excess of 45 Million $ of financing for companies of all size. For info and free of charge consultation on Canadian enterprise financing and contact details : http://www.7parkavenuefinancial.com/How_To_Finance_A_Canadian_Franchise.html