How to fund a franchise start-up
Not everyone has savings – or a redundancy pay-out – that they can use to invest in starting their own business. Even when it involves a relatively low-cost franchise opportunity, like The Little Foxes Club.
However, there are ways to get enough capital to become your own boss without relying on traditional business loans. Here we outline some of the options, including the government-backed Start Up Loan scheme, with links to help your research.
Your options to get help to launch your own enterprise may include the long-standing Prince’s Trust organisation. It has helped more than 90,000 UK people – aged under 30 years - to become their own bosses.
Start Up Loans
As long as you are over 18, this is one of the best ways to finance a franchise under The Little Foxes Club brand.
The Start Up Loans initiative is managed by an organisation called British Business Bank, but it is funded by the Government. It takes the form of a low-interest personal loan, that you can only use to finance a new business venture or to expand an existing one. So, it may also be an option if you decide to create a multi-territory franchise at some point.
You don't just benefit from easy-to-manage loan repayments when you invest in your franchise though. It comes with 12 months of business mentoring. That could be a great addition to the help and support you get from The Little Foxes Club team.
One of your biggest questions may be "Does this type of business loan put my home at risk?" or "Can I lend business start-up money if I don't own property?". What is exciting about this option is it’s an ‘unsecured’ loan. That means you DON’T have to have any assets to apply for this low-interest start-up loan. Nor do you need guarantors or any of the other obstacles that can limit your ability to secure start-up finance.
Other financial help for starting a business
There are other options you could consider too, to ensure you have enough money to start your own business confidently.
One is to ask your family to invest, on the basis of a potential return in the first 2 or 3 years. You could also explore Crowd Funding schemes to boost grassroots sports in your community.
There are organisations that match entrepreneurs to capital investment companies, or individuals looking for SMEs likely to succeed, as well as something called Peer-to-Peer loan schemes.
However, one of the first steps to securing cash to invest in your franchise is to contact The Little Foxes Club franchise team!
We would be pleased to discuss the cost of starting a sports-related franchise for children, and potential ways to get enough money to be your own boss.