How can you start a franchise in the Philippines and be your own boss without having to be wealthy?
- Turn to your franchisor
- Formulate a business plan
- Project your finances
- Apply for a loan
Have you ever thought about how it’s time to work for yourself instead of making your bosses or CEOs even wealthier? Starting your own business and being your own business can be an exciting, yet scary endeavor. If you want to try out your hand at being a business owner without many of the accompanying risks, why not start a franchise in the Philippines?
Now, you probably think that starting a franchise is reserved only for the wealthy, but that is untrue. There are many things you must address before you become a Philippine medical supplier or food franchiser; of these, the most important is finding a way to fund your franchise business. Here are a few suggestions on how you can start your franchise and be your own boss even if you are not wealthy.
Turn to Your Franchisor
Traditionally, the first place franchisees turn to for financing is their franchisor. Almost all franchisors provide financing, carrying the load of a fraction of the loan with their company.
Instead of paying for the entire start-up cost of a Philippine medical supplies franchise, portions of the cost may be financed by your franchisors. They may even have plans for financing the franchise fee, operational costs, equipment, or all three combined.
The franchisor can even make arrangements with leasing companies to lease you the equipment necessary to run your own franchise, in addition to financing a part of the start-up cost.
Formulate a Business Plan
A business plan is like a map of the first three to five years of any company or franchise. It has several parts and is meant to be like a living document; one that is able to change and grow as the abilities and needs of your franchise change.
A business plan that is well-thought-out can be the difference between success and failure when it comes to franchising in the Philippines. Formulate your business plan by first writing a thoughtful executive summary that boils down what your business plan is all about along with your company profile and goals.
A complete business plan should also include a technical study, projections and cost analyses, and a suitable marketing plan.
Project your Finances
Projecting your finances lets you and your potential investors see a big picture of where your franchise business intends to go over the coming years. Data from your past finances is important when creating solid projections, but because your franchise business is new, you probably will not have this information.
Any financial history, however, should be included such as income statements, balance sheets, and cash flow statements. Any business assets you might also have such as vehicles, machinery, or buildings that can be used as collateral should also be included.
Apply for a Loan
There are many ways you can secure a loan for your franchise. Government administrations, banks, and other private lending entities can offer several loan programs that are designed to accommodate your needs.
Take your time to explore all available options before choosing your path. And while these institutions offer many solutions for aspiring business owners in need of additional funding such as yourself, there are strict rules in place to determine whether you can qualify.
The best way to build your business and making sure it can grow is a solid plan. Collecting all the information you have shows potential lenders and investors that your franchise business is well established.
Anticipate all the issues you are about to face and address them immediately in order to make the process of securing financing go more smoothly. The type of business loan you decide to take can have a long-lasting effect on the future of your business. Take your time to research and deliberate thoroughly before you make your decision.