Home – New Forums Starting your journey Looking for investors or finance for a new business

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  • #972450
    TCross
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    • Total posts: 2
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    Hi every one

    I am currently looking into buying a franchise with The Shed Company. My husband and I do not own our own home so don’t have security.
    We’re thinking that becuase of this we’re either limited to one of ‘The Big Four’ for our finance options or private investors.
    Once I meet with the Franchisor and get an accurate forcast for earnings and capital required etc I will prepare a super hot business plan to show to the banks and prospective investors, but I am looking for any tips and advice you all might be able to offer on where to go, who to see and how to approach lenders and investors.

    Thanks in advance.

    #1056219
    Alan Maddick
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    • Total posts: 410
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    Hi Not many investors will look at a franchise unless friends & family.

    Banks will lend, big four may not be the best bet but most of them will lend something if the franchise is any good

    #1056220
    Warren Cottis
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    • Total posts: 807
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    Dear TCross

    This is what is referred to as a mature industry… been around for a long time and lots of competitors making it price sensitive.

    You can do better

    #1056221
    Aikibizcoach
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    • Total posts: 17
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    My first call would be to the FCA – Franchising Council of Australia. Doing your homework is important when considering the purchase of any business. Although the franchisor will probably help you with finance submissions, you should speak to other franchisees before committing. You need to do your own research and see if their experience matches up with what the franchisor tells you.

    It is true that banks like bricks & mortar security. Private investors can lend money and / or take a part ownership of your business. They are usually interested in whether you have the overall capacity to build a business from which they can earn a commercial return. They look at the quality and experience (runs on the board) of you and your team. You can’t get early sales traction until you commit but a history of success in a similar industry would be a big help.

    hope that helps and good luck
    Gary
    http://www.garyweigh.com/blog

    #1056222
    Anonymous
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    On top of the previous posters,

    I suggest you find out if your just a sales agent or expected to help erect the sheds yourself..

    You may actually be required to be a fully qualified builder in order to erect any of them, and if so does the price include training to be certified.

    some franchise groups have special pre-approvals, 1 that i looked into before the “gfc” had a deal with 1 of the big 4 where they were willing to come to the party for 50% of the startup costs (franchise value being around $500,000 buy-in price) just because of the brand.

    google or bing horror stories, law suites, about different franchises, to make sure you can cover ALL incidentals that might or might not happen.

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