At the Franchise Direct blog, we're always asking the question: what makes the perfect franchisee? Is it an innate intuition towards business? Is it an MBA-molded acumen honed over years in the corporate world? It is possibly all of these things, but it’s clear there’s one thing that every franchisee needs first and foremost in this economic climate.
Money.
The ramifications of the credit crunch mean that banks simply can no longer afford to lend aspiring entrepreneurs. Even with the signs of activity in the economy and the various initiatives that SBA have launched, prospective franchisees are still having a hard time getting access to money.
According to Jeff Elgin, founder and CEO of FranChoice, some entrepreneurs are having a ‘dickens of a time’ getting funding to open their franchise. The story also quotes an aspiring smoothie franchisee named Karen Strickling, who admits to selling off some beachside property in order to gain access to capital.
The economy may slowly creaking back into working order, but anyone looking to buy a franchise for sale needs a hearty amount of cash up front before even considering self-employment.