Are you an aspiring entrepreneur who is interested in setting up a computer franchise business?
If it is difficult to find the funding required to start your business, there are several options available. While everyone would like to have an angel investor write the first check to get their business off the ground in exchange for a modest stake in the company, that is unlikely, especially for unproven franchise business owners.
However, this does not mean finding outside funding is impossible. There are several paths that all entrepreneurs follow at some point in time, in order to get a new business started or to expand an existing operation.
The three “F’s” (family, friends, and fools) are the best source of initial capital to get a computer franchise business off the ground.
Family tends to be the easiest pitch for most individuals. Even if you do not secure much financial investment from family members, they can be very useful for practicing the pitch for future discussions with others.
Family members know you well. If you have a track record of being successful in other activities, family members with extra money may view investing in you as a way to diversify their investments away from other traditional financial investments.
Never take money from a family member if there is a chance that the money will be more important than the relationship. Small businesses fail for many reasons and this could affect your relationships.
Friends may see this as an opportunity to support you in your goals to pursue your dreams of being a business owner. However, friends often will be more likely to expect to see a financial return than family members.
If you convince a couple of random “fools” to invest in your new computer franchise you could get the amount of capital needed to get started. As long as you can handle managing the relationships, then money is money and at the earliest stage, it may be necessary in order to achieve success.
It is always advisable to consult with an attorney and an accounting professional prior to raising funds for a new computer franchise business.
Where are you in the funding process of getting your new business off the ground? Please share your thoughts in the Comments area below. (Just please be kind and don’t identify the “fools”.)
Creative Commons Image Source: flickr robertsharp