The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
How important is access to sufficient working capital in the early stages of running a franchise?
Sufficient working capital is essential to running any business, particularly in the early stages when things rarely go as planned and all those cost items you overlooked suddenly jump out and bite you. Not to mention sales growing at a slower rate than you thought and people taking longer to pay than you believed possible. If you join a well established franchise you are likely to have fewer surprises as the franchisor will have set up many similar businesses before and will insist you prepare a comprehensive business plan with not just profit and loss, but also cash flow forecasts. Beware the franchisor that gives you a pre-prepared one, because that will not be relevant to your own personal circumstances. If you live in a big house with a big mortgage and you have three teenage girls at private school, you are likely to need more working capital than a single person living in a rented flat. Cash, or working capital, is the lifeblood of any business. If the blood stops flowing the body dies. So when considering which franchise will be best for you don’t just look at the upfront fees. You may have enough to pay those without borrowing, but if you are going to need several thousand more to live on while things get going, make sure you have the banking facilities in place before you start.
You might also be interested in
Answered by Phil Archer
Phil Archer writes: The Bounce Back and CIBILs loans brought in last spring originally replaced the Enterprise... read more
Answered by John Pratt
John Pratt writes: First, you have to work out who is responsible for the poor performance because... read more
Answered by Louise Harris
Louise Harris writes: In respect of renewal fees, every franchise is different. Prospective franchisees are guided to... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: An experienced franchisor will know what works and what doesn’t work when marketing its... read more
Exciting Franchise Opportunities
Companies to Consider
Profit of £50,000 and increasing thereafter
Deluxe Window Cleaning
Year 1 - £29,309 Year 2 - £48,306 Year 3 - £53,387
Recognition Express Ltd
Up to £230,000
Radfield Home Care
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added one day ago | 2 min read
Added about 3 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news