We all have dreams, but sadly, not everyone has the courage or perhaps the money to pursue them. If your dream is to own a franchised business, in particular, you probably are too scared to pursue that dream because you think you just can\\\'t raise the capital for it.
If you find yourself in this situation, take heart. There are many successful businesses around that started practically from scratch, and a franchised business is no different.
As soon as you decide on the franchised business you want to get into, you have to find out precisely how much the franchise will cost you, then see if you are capable of raising the money needed to finance it. Your capacity and circumstances for doing this will depend on a few factors.
YOUR PERSONAL SAVINGS
The most widely recommended way to finance your dream franchise is to fund it solely with your personal savings. Capitalizing your business this way will give you greater independence, confidence, and security in running it. However, it\\\'s obvious that this option will only be open to you if you have substantial savings to begin with.
If not, better start finding ways now to build up your savings. Take a much closer look at your expenditures and see where you might be overspending.
YOUR CURRENT EARNING CAPACITY AND POSSIBLE SIDELINES
Another way of raising capital is to increase your earnings by putting your money in higher-yield instruments such as time deposits, bonds, and mutual funds. This is much better than letting substantial sums sleep in a savings account, which at the current annual interest of 1 percent will actually get smaller and smaller due to inflation, which currently runs at 6.2 percent.
You may also consider trading in the stock market as an option, but keep in mind that it\\\'s a risky form of investment. The stock market can possibly give you a better yield on your investment, but because it\\\'s volatile and subject to unpredictable fluctuations, there\\\'s also the possibility that your stocks may even be wiped out if you had chosen a particularly bad or highly speculative stock.
While setting up your first franchise, make every effort to maintain your current main source of income. In particular, it\\\'s best not to resign from your regular employment or to give up your current occupation immediately. Think also of putting your other marketable skills and talents to good use. For instance, are you a good writer or a good photographer? If so, find a market for your talent and set aside whatever earnings you make from it to increase your franchise capital.