expert advice: Phil Chaplin | CEO | CFI Finance Group
I’m starting a Franchise Business – What can I finance? When it comes to funding the expenses associated with your business start-up it is sometimes easy to think ‘it’s all the same pile of sand’; you’ve got all your costs (franchise fees, legal costs, equipment, property bond, fitout, stock, working capital) and you’ve got some money to cover those costs (savings, friends & family, investors, landlord contributions, external finance). Whilst it might be easy to think that so long as money-in equals money-out everything will be fine, the reality is a little more complicated. Knowing what you need to spend your capital (cash) on versus what costs you can borrow for could be the difference between getting your new venture off the ground or not.
Working Capital It’s tempting to leave working capital to last, after all for most people ‘working capital’ simply means the cash you’ve got left over
56 business franchise MAGAZINE
