"Go into business for yourself, but not by yourself."

Did you know your credit score is an important part of starting a business? Keep reading to learn more about credit, how your credit score is calculated, as well as how it’s used when funding a new franchise.

People who know me know that I've been around the franchise industry my entire life. I grew up working at a franchise company from a young age and have been involved in several franchise brands as a franchisor and a franchisee, sometimes both in the same brand.

As you sit in your designated workspace, thoughts may often drift away from the task at hand. 

From time to time, I have people looking to buy franchises asking me, Johnny Franchise, for advice. Well, I am not really a “Matchmaker.” I do like to give people ideas and perspectives to try and help. Here are the top five questions or bits of advice that I provide to these people when they find me.

Nothing can prepare you for the joys of fatherhood. Everything changes the day you set eyes on your newborn, and a new path — full of love and responsibility — immediately emerges. 

You must now serve as a caregiver and mentor to a child whom you will help guide into adulthood. It's daunting. It's terrifying. And it's the greatest thing you will ever do.

Have you been thinking about starting your own business or opening your favorite franchise? Most of us have at least dreamed about it at some point, and those who take it seriously have planned beyond that point and devised a business plan.

But even if you've gotten that far, the next steps can be overwhelming — especially at the beginning. Knowing when to move forward and begin your journey into business ownership is always difficult.

The good news? This year is shaping up to be one of the best years to start a business. 

Keep reading to learn why.

Why is now the perfect time for franchising?

For ambitious entrepreneurs debating their best funding options for their business, this question is often posed: Can I use my 401(k) as an investment fund?

During the month of February, we celebrate Black History Month.

All of us are well aware of the significant contributions made to our society by the likes of Harriet Tubman, Frederick Douglass, Rosa Parks, and Martin Luther King, Jr., to name a few.

But are you also familiar with the names of Reginald Lewis, the richest African-American man in the 1800s; Charles Clinton Spaulding, president of North Carolina Mutual Life Insurance Company; Alonzo Herndon, founder of Atlanta Life and Atlanta's first Black millionaire; or Madam C.J. Walker, the first American woman to become a millionaire based on her hair care products formulated for African American hair?

“Take one for the team.”

“Offense sells tickets, defense wins championships.”

There sure are a lot of football cliches used in the workplace! As football season nears its exciting end in both college and the pros – and a new, opportunity-filled year kicks off for small business owners – this is a great time to take a look at a few of the similarities between franchise business ownership and America’s favorite sport.

“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy."   -Dr. Martin Luther King, Jr.

There’s no denying that we are living in a time of uncertainty and disparity. Between the political dissonance among the American people today and the increased and ongoing cries for social justice, this disparity weighs heavily on all of us. However, even in difficult times, there’s opportunity to be a positive force for good.

“Next year is going to be even better than this year.”

This might normally sound like a worn-out cliché, but after the year we've just had, hopefully most people can agree with the optimism!

There’s a good chance you’re looking forward to putting 2020 behind you. January 1st is always a great opportunity to reflect on the past year and plan for the future, which is especially welcome this year. Here are some new year’s resolutions that will be particularly relevant for small business entrepreneurs this upcoming year.

2020 is almost over and 2021 is right around the corner. If you’re a small business owner, this year may have felt like a full decade! As we look ahead to the new year, there are many opportunities facing franchise businesses and the franchise industry as a whole. Some of this year’s obstacles for small business owners will linger through the beginning of 2021, but these challenges will open doors for savvy entrepreneurs to capitalize.

If you’ve considered using Rollover for Business Startup (ROBS) as a franchise funding strategy, you may already be familiar with many of the basics. ROBS strategies allow aspiring entrepreneurs to invest in themselves by using their own qualified retirement funds, without incurring any debt, tax penalties, or early withdrawal penalties.

While there’s plenty of information out there about the basics of ROBS strategies, answers to some of the more specific questions can be hard to find if you haven’t spoken with an expert.

We would like to thank Dr. Stevie Dawn for this guest blog post. Dr. Stevie Dawn is a keynote speaker and corporate trainer who specializes in emotional intelligence strategies in the workplace. We have found Dr. Stevie Dawn’s workshops particularly helpful as we’ve navigated the unusual challenges of 2020. We chose to share a bit of her wisdom with our readers, many of whom own and operate businesses of their own.

It’s dog-eat-dog. Let sleeping dogs lie. The tail is wagging the dog.

Think all entrepreneurs are whiz-kid tech titans or eccentric inventors? Great Scott! Think again. In fact, there’s no definitive profile of an American entrepreneur. Startup founders span all age groups and their businesses cover nearly all industries.

The United States is home to tens of millions of entrepreneurs. There’s a good chance that you have friends or family members who own their own businesses. You may even be a business owner yourself.

With 17.4 million veterans in the United States, chances are you have at least one family member you give a special thanks to every November 11^th. Veterans Day allows Americans the opportunity to thank the men and women who have served our country and to honor the sacrifices that they’ve made to protect our freedom.

“You miss 100% of the shots you don’t take.”

There’s a good chance you’re familiar with the term franchise, and you may also be generally aware of how franchising works. If you’re exploring the franchise world for the first time, learning the basic terminology is a great place to start.

Franchising is a hybrid business model that combines the power of a known brand with the autonomy of entrepreneurship. The common industry phrase is, "When you buy a franchise, you are in business for yourself, but not by yourself."

The franchise model is used across nearly all industries. There are over 700,000 franchise businesses throughout the country, employing over 8 million people! When executed properly, franchising is a great arrangement for everyone involved.

It has been more than seven months since the coronavirus pandemic began. Although the business world has been upended, there are signs of improvement and resilience.

Many entrepreneurs have capitalized on the recession and the low entry barriers that it has created. Optimism among current business owners is growing, with owners expecting conditions to improve as our recovery continues. Applications for new businesses are at their highest point in over a decade, per data from the US Census Bureau and Federal Reserve.

You’re likely familiar with franchising. Franchises are a cornerstone of the American economy, employing millions of people and generating hundreds of billions of dollars every year. With so many franchise businesses in operation, there’s a good chance you’re a regular customer at a franchise or two.

You may also be familiar with some misunderstandings about the franchising model, whether you realize it or not. Here are some of the most common misconceptions about franchising.

The period from September 15^th through October 15^th is National Hispanic Heritage Month, which celebrates Hispanic and Latino Americans’ contributions and achievements. This celebration starts mid-month because it began in 1968 as a commemorative week, and in 1988, it was extended to a full month.

Hispanic and Latino Americans make up an incredibly diverse group of cultures. They comprise nearly 60 million people and represent Americans with cultural ties to all Spanish-speaking and Latin American countries and dependencies. It should come as no surprise that their contributions to the business world have been rich and varied!

Latino entrepreneurship in the Americas began over 500 years ago before our country was even founded. Some of the first Latino-owned enterprises in the United States included ranching, farming, and shop ownership.

Today, many of our country’s most innovative and disruptive entrepreneurs are from Hispanic and Latino backgrounds.

There’s no getting around it. Our country has experienced a painful and challenging summer. In addition to the coronavirus pandemic, we’ve been confronted with longstanding issues of race relations and systemic racial injustice. FranFund stands with the Black community and all Americans of color. We hope that our country can grow stronger as we acknowledge these problems and work to fix them, rather than hiding from them or remaining silent.

The issues of inequality and disproportionate police bias against Black Americans hit us close to home last fall, when Atatiana Jefferson was killed in her own home three miles south of our Fort Worth headquarters. Following her death, our CEO Geoff Seiber was moved to engage with our local Black business leaders, with the goal of determining what we can do to help. In his words, “We had to do more.”

Starting a business may not be your personal dream. Your spouse, on the other hand, may have the entrepreneurial itch that drives them to take action. People are now starting to think a little differently about business and employment — it’s a great time to get creative.

Whether your spouse is starting a business independently or you’re going into a joint venture, the process can be a sensitive and overwhelming experience. To be successful, it’s important to have spousal support from the start. Here are some ways you can support your spouse as they take the leap to start a business.

Starting your franchise business is probably one of the most exciting things you have ever done. And it should be! You’re embarking on a new career as your own boss. Before long, you will have customers and employees, and they’ll be some of your most valuable relationships.

It’s important not to get so focused on these relationships that you put your professional service suppliers on the backburner. These suppliers may be crucial to the success of your business.

Franchising is a collaborative business model, and that’s reflected in the supportive nature of the community. The franchise industry is full of specialists who are here to help entrepreneurs like you succeed. It is important to tap into this network and find professional service suppliers who meet your business’ needs.

You’ve probably heard the phrase before, especially during election cycles. Small businesses are the backbone of America. You might be quick to roll your eyes and dismiss this as an outdated saying, especially with major eCommerce retailers and big-box stores commanding all the headlines. However, small businesses make up over 99% of all US employers and account for 60% of all jobs added annually.  Nearly all consumers in America prefer to support small, locally-owned businesses when possible. On average, a greater portion of the money spent locally stays local compared to money spent at a non-local business. 

At least one million businesses in the United States are owned by married couples, Many spouses have found that their relationships have been strengthened by both the highs and lows of co-owning a business. Are you and your significant other thinking about joining their numbers?

After turning another page of the calendar in 2020, we will celebrate another major holiday in the middle of a pandemic. While our 4th of July celebrations will likely look different than previous years, there is still much to celebrate and be grateful for. Our small business community has been hit especially hard the past few months, and they need our support more than ever to lift them up as they come back online. It's the perfect time to reflect on our country's remarkable history of entrepreneurship and small business success.

Much attention has been paid to large companies that have thrived throughout the COVID-19 pandemic and the Great Lockdown. A few tech and eCommerce giants may come to mind. There has also been considerable focus on the retail sectors that have been upended, and the thousands of small businesses forced to shut their doors.

COVID-19 isn’t going away anytime soon, but localized reopenings have been underway for almost two months. Several recession-resistant sectors are showing signs of life and are poised to grow post-lockdown. This is an ideal time to consider ways to capitalize as a potential small business owner, or as a current small business owner considering a pivot. All crises end, and new leaders always emerge.

The franchising business model has unique advantages during recessions and in their aftermaths. Unlike starting from square one, you’re investing in a proven system, which lowers risk. The parent organization’s resources provide unmatched support and stability that is often essential in times of uncertainty. And crises provide rare opportunities to see how franchisors perform when the stakes are highest.

COVID-19 is here for the foreseeable future, and people across the country are adjusting to the new normal. While the future remains uncertain, there are some signs of economic recovery on the horizon. Many experts believe we’ve bottomed out and are poised for a rebound. Per the Department of Labor, unemployment claims are finally starting to dip. Your community has likely begun its first phase of reopening. What does this mean for small business owners?

If you’re among the majority of US small business owners forced to close, you’re probably eager to get back to work, even if it’s not in your usual capacity. It’s critical to reopen safely and responsibly.

Those of you who have been in franchising for a while probably remember the Great Recession and its aftereffects. Banks were suddenly facing unprecedented scrutiny, and risk tolerance dropped to zero as they were burdened with new regulations and fail-safes. Loans that had previously flowed to brands were suddenly being held up. Banks wanted franchisors to prove that they had “skin in the game.”

The onus to prove viability shifted from the franchisee (borrower) to the franchisor. Item 19 came into full bloom as brands vied to prove their worth.  The smarter franchisors were quick to adapt and complete the requirements for the Bank Credit Report and the Franchise Registry. Many changed their FDDs to show that they were willing to back the franchisee with royalty payments that ramped up other investments. Their financial statements became more detailed. This really wasn’t negotiable; if you wanted franchisees funded quickly for a fast ramp-up, you changed.

Starting a business with your significant other is an exciting venture, and there are a lot of perks. After several weeks of quarantine, you may have even realized, “Hey, we can totally work together!” Still, no matter who you’re partners with, business brings obstacles — especially during a pandemic.

Whether it’s funding needs, personal management style, or company goals, there are a lot of hoops to jump through. And the thing is, you both have to jump through the same hoops, together. To help you gauge your future together in business, here are the top 10 things you should know ahead of time.

Over the past several weeks, we have faced unprecedented business interruptions in the wake of the coronavirus pandemic. In response, the CARES Act was passed to provide fast and direct economic assistance for American workers and their families, as well as existing small businesses.

As part of the coronavirus debt relief efforts, the SBA announced a loan payment assistance program. If your business already has an SBA loan in place, with the first payment due after March 27th, 2020, OR you are a new borrower and can close your SBA loan and be in regular loan servicing on or before September 27th, 2020, the SBA will make your first six payments.

As the borrower, you have an important role in the process.  

Getting your Small Business Administration (SBA) loan approved is an important first step, but getting your money in hand requires a successful loan closing. The loan closing can take substantial time if you’re not prepared and able to provide what's needed to the lender's closing team in a timely manner. 

Thanks to franchising, the dream of business ownership has become a more realistic goal for all entrepreneurs. By investing in a proven model and following the franchise brand’s existing guidelines, you can get your business started and be profitable much quicker and easier than starting a business concept from scratch. And, one of the largest areas of growth in franchise businesses is with African American owners.

There are multiple avenues for funding your business, and no one path is going to be the right one for everybody. On that note, people should take heart that there are often many right roads to funding so long as you’re informed before you get into the weeds of business funding options. 

When it comes to getting funded with a Small Business Administration (SBA) loan, you must be confident in your game plan. You cannot win a game depending only on your quarterback. You will need to have all your X’s and O’s in the right place, along with a winning strategy in mind.

That’s where FranFund comes into play. Think of us as your head coach. Here are the 6 steps we will tackle to get you to the “SBA loan end zone” with FranFund:

On December 20, 2019, President Trump signed the SECURE Act into law. SECURE stands for “Setting Every Community Up for Retirement Enhancement.” The purpose of the bill is to extend opportunities for Americans to better save for retirement. 

December is a slow month for some business owners. Customers are on the downswing of their buying cycles. It's a time for business owners to take stock and get their books in order. For many other business owners, however, this is the busiest time of the year. This is particularly true for businesses that sell B2C and have high degrees of seasonality. This year’s favorable retail outlook should keep things even busier than usual this holiday season!

If you find yourself among those in an end-of-year frenzy, relax and take a deep breath. You will come out on the other end stronger than before! It’s easy to get lost in the year-end tasks that are likely taking up a majority of your time. Especially when all you want for Christmas is for the books to be balanced, end-of-year bonuses to be disbursed, taxes to be put in order, inventory to be accounted for, Q1 forecasts to be finished… is that too much to ask for?

While end-of-year needs obviously matter, it’s also important to keep your eye on the big picture; the life of your business will continue well past December 31^st. This is a great time to reflect on what you accomplished this year and plan for your future.  In addition to more commonly discussed end-of-year tasks, 2020 has some trends in store that should warrant your attention as a small business owner.

Thanksgiving is this week, which for many of us means time off of work to celebrate holiday traditions with our family and friends. A time to slow down a bit, relax, and unwind.

But for most business owners, this is the busiest time of year, with Black Friday, Small Business Saturday and Cyber Monday right around the corner. Businesses rely heavily on holiday sales to boost annual performance, so instead of slowing down, they are ramping up.

November is National Entrepreneurship Month, which celebrates our country's entrepreneurs who create jobs, spur growth, and push forward with innovation. The United States remains the world's strongest market for entrepreneurship. This is largely due to unparalleled access to research and capital, favorable public policy, and perhaps most importantly, a business culture that encourages both risk and creativity. 

Federal Reserve interest rates have been a hot topic in the news lately. With the Fed reducing rates last week, this is a great time to understand what Fed interest rates are and how they affect franchise financing.

For ambitious entrepreneurs debating their best funding options for their business, this question is often posed: Can I use my 401(k) as an investment fund?

Entry costs for franchising vary based on brand, location, industry (quick service restaurant, travel, beauty, etc.), and level of support. It’s important to fully understand the financial requirements to get your business started. Your decision to open one franchise brand over another may very well be influenced by the total investment amount. You will also need to know your total project cost when you are ready to explore funding options for your business.

So, what exactly are the costs involved in opening a franchise? There are two main categories – your initial start-up costs, which are typically one-time expenses and your on-going expenses, which are usually incurred on a monthly basis.

Are you considering business ownership and wondering if a franchise is a good investment? Owning a franchise can be a lucrative and rewarding experience. It allows you to invest in a proven system, work for yourself, and in many cases, enjoy greater returns than alternative options.  

When you get voted #1, especially by the people who matter the most, you celebrate. At FranFund, we are in full celebration mode this week! We want to thank everyone who voted and helped name us #1 on Entrepreneur Magazine’s Annual Franchise Industry Supplier Ranking.