Start the Preliminary
Are you interested in going into business for yourself? That’s great! There are many benefits of starting a new business by joining a successful franchise. These benefits include flexible hours, being your own boss, and most importantly, having the support of a company behind you.
Part of getting started is learning about your new home care franchise costs. How much money do you need? How will you go about securing it? Where will you get the money from?
That’s why the experts at 1Heart Caregiver Services created this guide that covers senior care franchise costs and processes. Keep reading to learn more about starting your own home care business and ways to obtain funding for this important business venture.
Have a Solid Grasp of Your Financial Situation
Before you approach any lenders to help with funding a franchise, you need to understand your current financial situation. Lenders like banks and credit unions will do extensive credit checks to ensure you’re a good investment. It helps them to be prepared for what they might find.
You can start finding out about your financial situation by determining your net worth. List your assets (what you own) and your liabilities (what you owe) side-by-side. Your assets include things like cash you have on hand, savings accounts, the current market value of your real estate/cars, etc. Liabilities are things like bills, your mortgage, any loans, etc.
Subtract your liabilities from your assets to determine your net worth. Funding a franchise is a big investment, so make sure your money situation is solid.
Lenders helping with your home care franchise cost will also look at things like stability and a track record of making payments on time. For example, how long you’ve been in your job and if you’ve ever defaulted on payments.
Once per year, credit bureaus are required to give you all the information that’s in your credit history. Before approaching lenders, collect these reports. It will give you the opportunity to correct any wrong information and see where you stand financially.
Put Together a Business Plan
Part of handling your senior care franchise costs is having a detailed business plan. The lenders funding your franchise will want to see that you’ve put thought, time, and data-driven effort into your business adventure. A business plan covers that requirement.
A complete business plan should have a detailed technical study of the business you plan to start, accurate projections and cost analyses, estimates of working capital, and a marketing plan. It should also include certified statements of your net worth (that you figured out above) and a few credit references.
Basically, you’re trying to show your potential lender that you’ve done your homework, you’re reliable, and you’re being smart about your business decisions.
Funding a Franchise with a Lender
Once you’re ready, it’s time to approach lenders. 1Heart Caregiver Services is proud to be approved by the SBA as a franchisor. Because of this, it is much easier to get funding through both the SBA and some other private institutions. When you apply to start your business with us, we’re often able to approve your home care franchise cost request more quickly than other lenders. That’s thanks to our network of financing companies with whom we have long-standing agreements. It helps to streamline the financing process.
In addition to covering your senior care franchise costs with us, there are a few other places where you can receive a business loan. If you have equity in your home, you can use it to secure a home equity loan. Small Business Administration (SBA) loans are commonly used for funding a franchise. If your financial situation allows for it, you can also sometimes use retirement funds.
Lastly, you can crowdsource from family and friends if you don’t want to go the more traditional loan routes. Be careful mixing business and family, however!
So, How Much Money Do You Need?
Unfortunately, there is no one answer to this question. Things like where you live, your unique financial situation, and other factors will affect how big of a loan you need.
However, you don’t have to try and figure it out alone! Let us help you determine your home care franchise cost. Get in touch with us!
Funding a Franchise with 1Heart Caregiver Services
Whether you choose to trust us with your senior care franchise cost or go another route, we’re thrilled that you’re interested in caring for the elderly in your community. Starting your own business is about so much more than just being your own boss. You have an opportunity to make real, positive changes for the people in your care.