Financing
Would you like the opportunity to run your own franchise but are unsure of what personal finances you have available? There are a number of options available to women entering into the franchise industry, such as:
- Personal Resources: Many women entering into the franchise industry generally use their personal resources (savings, family and friends) as a starting point for borrowing and raising money for their franchise opportunity.
- Financial Institutions: Some female franchisees may turn to financial institutions for debt financing or equity financing, or both.
- Franchisor: In some cases, the franchisor can help generate the start-up finance needed to set up a franchise.
However, there are other resources available to women entering into franchising. Some of these resources can provide substantial funds and grants to women entering into the franchise industry.
View the following list of organizations that are dedicated to helping women finance their own business, or locate other organizations to help with funding.
1. Financial Institutions: The Small Business Administration (SBA)
Financial institutions in the U.S. are now actively assisting women in starting their own franchise. The Small Business Administration (SBA) is one such institution that is reaching out to women franchise owners in an attempt to increase the number of female franchisees.
The SBA has signed partnership agreements with 15 leading professional women’s organizations, including the following:
- The National Association of Women Business Owners (NAWBO),
- Women’s Business Centers;
- The National Federation of Black Women Business Owners;
- onal Association of Female Executives.
In addition, the SBA has more than tripled the number of loans to women business owners since 1992. This organization is a popular source of revenue for women franchisee start-ups. For further information, please click on the link provided, or read on to find out about similar organizations set up to help women financially.
2. The American Institute of Certified Public Accountants (AICPA)
This organization offers expert franchise information for women interested in buying into a franchise opportunity. According to AICPA, “Women today control individual and family spending, run the majority of small businesses in the country and an increasing number of corporations”, and hence require much-needed financial assistance.
The AICPA has set up an on-line program: 360 Degrees of Financial Literacy for Women to answer women’s financial questions directly, professionally and simply with their FAQs, articles and interactive tools for every aspect of money management and financial planning.
This organization is particularly helpful in providing information on locating funding from reputable organizations.
3. Association for Enterprise Opportunity
This organization promotes the micro-enterprise industry, encouraging minorities such as women to start up their own franchise or business opportunity. This organization can help provide financial aid/loans for individuals wishing to start up their own business.
The average micro-loan is approximately $7,000.
4. Count Me In
Count Me In for Women’s Economic Independence is the leading national not-for-profit provider of micro loans and business education for women entrepreneurs. Started in 1999, Count Me In’s mission is to promote women entrepreneurs and women’s economic independence in the U.S.
They aim to help create a million dollars for a million women by 2010 through their on-line program “Make Mine a Million$”. This organization provides key information on women starting up their own business, key seminar workshops and services to help women start up and in some cases finance their business opportunity.
5. Ewing Marion Kauffman Foundation
This foundation was set up to help foster entrepreneurship through grant making and education, and provides expert resources and financial aid for women hoping to set up their own business or franchise opportunity. "In the current environment, minorities and women do not keep pace with the general entrepreneurial population. The Kauffman Foundation is working to better understand these gaps and to develop programs to help ensure minority and women entrepreneurs are successful". (Kauffman Foundation)
The Ewing Marion Kauffman Foundation also funds The Angel Capital Education Foundation (ACEF), an organization set up as a charitable organization devoted to education, information and research about angel investing for investors, entrepreneurial support organizations, university faculty and students, and policy makers. An angel investor is a high-net individual who wishes to support an individual in starting up their own business, for a fixed return on investment. There are accredited angel investors operating all over the US and Canada willing to invest in local entrepreneurs.
WomanOwned.com is a business network for women focused on helping entrepreneurs who want to build and develop their own business. "Formed in 1998, Woman Owned has been providing information, tools, networking opportunities and advice for women who are starting or growing their own businesses". (WomenOwned)
The Women's Venture Fund, Inc. is a non-profit organization providing entrepreneurial skills training, business loans, and business assistance, working with women in the communities of New York and New Jersey.
8. Government Grants for Women and Minorities
This website is dedicated to outlining government grants/funding applications for women and minorities who can avail of possible funding in starting their own franchise or business opportunity.
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Inspiring Women Working within Leading Franchise Systems: Case Study Eva Crosland is Manager of Franchise Development with leading children’s franchise Gymboree Play and Music. Eva has worked within Gymboree for over 17 years. Her experience and knowledge of the machinery of a franchise system are invaluable to any individual interested in entering into a franchise opportunity. Here Franchise Direct relate Eva’s expertise of the franchise industry firstly as a woman working within the industry, and secondly her advice for potential female franchisees wishing to enter into the franchise industry… Describe your role within Gymboree? Women in Franchising: What is your opinion? Eva believes that the “majority of women (in franchising) have a special touch when in communication mode; with a twist of involvement, compassion and empathy that is not found very often otherwise.” This conveys how women have a special connection within the franchise industry and retain the necessary characteristics to be a successful franchisor or franchisee. Describe 5 key points a potential female franchisee should consider when considering a franchise opportunity…
As Eva recognizes, “running your own business is a commitment of your time (lots of it) and hard work, which includes necessary business responsibilities that you don’t necessarily enjoy”. Eva argues that your time should be spent working within a franchise system that you enjoy personally and matches your personal desires and ambitions. “This is when you can wake up and be ready to get to work and do so with enthusiasm and end that same day with satisfaction from your efforts”. About Gymboree Play and Music Franchise opportunity… For nearly 30 years, Gymboree carefully crafted programs have been helping parents and children to grow young minds. Gymboree are committed to the continued building of their world-class franchise system. They are also continually developing their classes and program content to incorporate cutting edge learning and fitness activities. Help to grow young minds and your future with a Gymboree franchise… If you would like more detailed and free information about Gymboree franchise opportunity, please click on the link provided to view its profile. |
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