How to Start a Franchise with No Money: Franchise Business and System

December 23, 2010 4 Comments

If you are willing to own a business of your dream but you do not have the resources or money to start it from the scratch, you have an alternate option left. You can buy a franchise business. The option of buying and starting a franchise business with no money can give you great entrepreneurial foothold. There are several advantages of starting a franchise business. The most important advantage is that it would allow you to get all kinds of guidance and support from the company whose franchise you would own.

How to Start a Franchise Business or System with No Money

Before you get into the act of starting a franchise, you must identify your own interests and skills as these are the aspects that would determine your selection. If you have no money and you still want to own a franchise, you can stand a good chance only if you convince a bank to finance you an initial amount.

You would require to use the amount as your marketing budget. Go after the following tips and ideas before your step into starting a franchise with no money.

  • Since you are going to start your franchise business with no money and all your financial hopes rest with the bank, you cannot afford to buy a big and reputed franchise. Considering your interests, go for a relatively low-profile company that may require low deposit amount. But make sure that the company that you choose has a brand-name value. It should also offer you responsiveness and hands-on support in case you encounter trouble.
  • Make sure to inquire into the creditability of the company whose franchise you intend to buy. You should also know for how long the company is around. There are scores of franchise businesses that were short-lived. If you choose the franchise of a company that has low surviving prospects, your business hopes would be dashed.
  • You should hire the services of a franchise attorney who may review your documents and help you in the proper negotiation of your business deal with your franchise company. The attorney should have relevant experience of working in the related field.
  • After striking out the deal, concentrate on the expectations of the company. There are franchisors that want quick result. However, there are some companies that give proper time to flourish.
  • You should ask your franchise company if it would provide you with bookkeeping, advertisement materials and support to settle personal matters.
  • You are required to keep all your financial matters in order. Most of the franchise companies like to see the proofs of business experience and financial security before they sell their franchises to the aspirants. So, make sure you have both before you enter into any deal.

The above-mentioned ideas and tips would surely make the task easy and help you know how to start a franchise system.

4 Comments »

  • SR said:

    I am a student of chartered accountancy course. I belong to a lower middle class family and so i don’t even have a penny to invest. But i want to start a business of my own. Is there anyone who could suggest me what business to do. And I am still confused about my field of interests. Mr. Scott Wilson please if possible reply me soon.
    Thank you.

    Reply This Comment

    Scott Wilson Reply:

    Mr. SR,
    Are you doing your chartered accountancy seriously? If yes then concentrate on it. Clear the CA and then you will get a good job. Then do job for 1-2 year, make some money and then start your own practice.
    Think rationally.

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  • BC said:

    Hey Scott,

    I hope all is well.

    I have been reading A LOT lately in regard to starting my own franchise. I just finished school may 2010, I currently work within a prestigious consulting firm, and the thought of business school is getting more and more unattractive. I have several friends within HBS right now and that is kind of the standard for people within my network… unfortunately the idea of investing so much time, energy, and effort into more schooling when I know exactly where my career objectives lay… takes the thought of HBS out of my realistic career objectives. I know for a fact that my ultimate goal is pursuing the franchising industry. I have several questions surrounding franchising and I would truly appreciate it if at any free moment you may have to reach out to me via email (if at all possible).

    Thank you

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  • SG said:

    Hello Sir,
    We have a small computer unit having 10 pcs with internet connection. Past we have done so many jobs i.e. Mobile form computerization (Hardcopy/ Scan copy to computer), eBooks, OCR, Data Entry (Voter Card, Family members counting, Insurance jobs, Telephone data index), Libary book scanning etc. There was some job from UK, England, Canada – which we had done through Indian media house. Where, we have loss some lacs of money due to fraud. Our vision is not a profitable business. Our vision to support so many un-employed persons in our area, as well as by getting some expenditure for our computer unit. We want a genuine contractual business on believe without investment. If there are needs any caution money, which may be deduct from our payments. We promise you our hard support and accuracy. If there anybody in this Earth – who are actually helpfull to support moneyless peoples, please help by providing some genuine work.
    Thank you.

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