K
kearnsey11
Guest
Hi All,
I am 25 yrs old and am currently working in the corporate world. I have been looking into franchising for some time now and believe I have found the franchise that would best suit my talents (University educated in both IT and Entrepreneurship).
The franchise is an Internet Marketing (Consultancy) franchise.
I do however have a big concern in terms of financing the purchase of the franchise and I'm hoping some of you experienced people might be able to help me out. So, here's a snapshot of my financial situation today:
Savings - 0
Investments - 0
Bank loans - €9,500
Credit Card - €1,700
The cost of the franchise is approx €50k. I have no capital available for a down-payment.I have yet to approach any financial institutions about financing me.
If I were to go ahead with this I would attempt to repay the loan within the duration of the franchise agreement (5yrs). This means that I would need to meet average monthly repayments of approx €1,500 per month.
Am I crazy thinking I can make this work? At a rough estimate my average monthly expenses would be €4,300 including making the loan repayment and paying myself a salary of €2,000pm (any less and I might as well stay in work, because I almost make this as it is).
I was told by the franchisor that on average a franchisee can expect to make 2/3 sales per month, if that were the case, going by the average net profit they mentioned I could expect to take in between 7 and 12k per month depending.
Any advice, tips, etc? Your comments would be appreciated.
I am 25 yrs old and am currently working in the corporate world. I have been looking into franchising for some time now and believe I have found the franchise that would best suit my talents (University educated in both IT and Entrepreneurship).
The franchise is an Internet Marketing (Consultancy) franchise.
I do however have a big concern in terms of financing the purchase of the franchise and I'm hoping some of you experienced people might be able to help me out. So, here's a snapshot of my financial situation today:
Savings - 0
Investments - 0
Bank loans - €9,500
Credit Card - €1,700
The cost of the franchise is approx €50k. I have no capital available for a down-payment.I have yet to approach any financial institutions about financing me.
If I were to go ahead with this I would attempt to repay the loan within the duration of the franchise agreement (5yrs). This means that I would need to meet average monthly repayments of approx €1,500 per month.
Am I crazy thinking I can make this work? At a rough estimate my average monthly expenses would be €4,300 including making the loan repayment and paying myself a salary of €2,000pm (any less and I might as well stay in work, because I almost make this as it is).
I was told by the franchisor that on average a franchisee can expect to make 2/3 sales per month, if that were the case, going by the average net profit they mentioned I could expect to take in between 7 and 12k per month depending.
Any advice, tips, etc? Your comments would be appreciated.