Financing Your Franchise – Start-up Costs & Cash Flow
This post was written by Michael on October 24, 2009
Posted Under: Entrepreneurial
Posted Under: Entrepreneurial
Fundamentals of Franchise Accounting
The pros and cons of purchasing an existing franchise outlet compared to starting a brand new one are discussed.
Cash-flow is an important discipline to learn to manage before throwing the doors open for business and the following important point is made: “It is far easier to obtain money for a well researched and thoroughly planned start-up than it is for a struggling franchise that hasn’t met projected expectations.”
Cash-flow projections are also important for obtaining funding and so cannot be over-stressed.
You can read the full article here: Finance | Franchises
And here is a list of all the articles in this series:
Franchising Financials (Pt I)
Franchise Financing (Pt II)
Financing a Franchise, Keeping Records (Pt III)
Managing Debtors and Summarizing Financing a Franchise (Pt IV)
Reader Comments
Your series of articles on the ins and outs of franchising seem to cover the challenges quite well. Regarding cash flow, I’ve found that it is of the utmost importance to remember that a business lives on cash flow, not on financial reports. That is not to say closely monitoring performances is not important, but ensuring that one has enough resources to cover responsibilities is critical.
Great articles. Very informative. These really give people an idea about the investment.
Thanks for your comments, Dena. I remember in my first business I didn’t pay much attention to cash flow thinking it would take care of itself. I doesn’t, of course and when the time comes that you really need to have that money coming in, you can quickly find yourself in hot soup as your creditors inevitably drag their feet.
So it is indeed important.
Thanks Keri,
More good articles coming up soon!