Plan involves huge startup cost, is it possible?

**Jakec** · 03-30-2008 09:00 PM

Questions like this very likely arise alot, and I apologize but I couldn't find one that involves everything I need.

I'm a few years away from becoming a businessman, and I have already chosen a franchise I would like to open, as it a very popular name, not currently in my location, nor is any of it's competitors. It really is the perfect business to open in my area. My problem is, it involves big money. The property I would like to buy would cost over one million dollars, and the building, equipment, franchise fees, and everything else would be another 2-2.5 million. What is the best action to take to acquire that kind of money from a bank?

My only idea which is far from 100%, is to discuss a price with the property owners, sign the papers and put a non-refundable option on it. Then contact the franchisor and tell them I am buying this land and think it would be a great choice for them, and if they agree, get them to send me proof. I would take that to the bank, and from what I'm told, the bank would more than likely be eager to get in on a big name like this opening.

What do you guys think? I'm young so my plan probably missed a few things already, but any suggestions would be helpful.

**pboychuk** · 03-30-2008 09:40 PM

Hmm, do you have any business experience? How do you "become" a businessman, I would say you need to start small, learn some of the trade before somehow conjuring up millions of dollars for a franchise, you have to advertise yourself to the franchise, and if this is your first business I dont think that would be very attractive, I may be wrong, and im not trying to shoot you down, I just know personally I dont like to get too deep into the hole before I start making any money.

**Gaulkin** · 03-30-2008 10:05 PM

Write a solid business plan before you go to the bank. Id wait till the credit crunch blows over to help your situation. You also have a better chance at getting financing because you want to buy a franchise and not start a new business. Do you have enough for a down payment on a 2.5 million dollar loan?

**Encrypted** · 03-30-2008 10:06 PM

I don't completely agree with post #2. But, it would help if you had some type of experience. It seems like you have a great plan to get your business off the ground, so I don't think you'll have a problem becoming successful.

**DPayne** · 03-30-2008 10:19 PM

Went from a lawncare making $200/wk a few posts ago to a 2.5M franchise. Thats a way to think positive! haha Dont let anyone get in the way of your dreams.

**hugh009** · 03-31-2008 12:26 AM

Amen, and I second what the majority are saying; however I also would suggest you wait until we get a better financial situation as banks are really skittish right now. Also need a biz plan.

Hugh

**Sandgroper** · 03-31-2008 07:39 AM

Originally Posted by DPayne

Went from a lawncare making $200/wk a few posts ago to a 2.5M franchise. Thats a way to think positive! haha Dont let anyone get in the way of your dreams.

LOL, mind you jim penman in Australia started with $27 and now his company jims mowing turns over $150,000,000 per year around the world, maybe jake should stick to lawncare for the big bucks and low entry costs.

ON EDIT> he franchised the business BTW.

**pboychuk** · 03-31-2008 08:34 AM

Hehe, sorry for coming across as the devil's advocate. Basically what I was trying to say, is I would suggest starting your own business to gain some capital before jumping to the franchise. I am not saying you cannot make money because you are just starting out. I am a college student and will be in six figures by the end of this year, but I do everything out of my apartment, Maybe down the road I will franchise, But, I have no plans to risk millions anytime soon. Maybe I just like the extra security blanket, regardless of what you choose to do, keep us updated, this should be an interested process to discuss and it develops.
Best of Luck,
Peter

**Gaulkin** · 03-31-2008 08:38 AM

Originally Posted by pboychuk

Hehe, sorry for coming across as the devil's advocate. Basically what I was trying to say, is I would suggest starting your own business to gain some capital before jumping to the franchise. I am not saying you cannot make money because you are just starting out. I am a college student and will be in six figures by the end of this year, but I do everything out of my apartment, Maybe down the road I will franchise, But, I have no plans to risk millions anytime soon. Maybe I just like the extra security blanket, regardless of what you choose to do, keep us updated, this should be an interested process to discuss and it develops.
Best of Luck,
Peter

Really, you make 6 figures doing what?

**pboychuk** · 03-31-2008 08:53 AM

Originally Posted by Gaulkin

Really, you make 6 figures doing what?

I do not make 6 figures yet, im about half way there based on my per month profit, but I am only about about 10% of my potential, I am rapidly adding new products, I basically sell retail product in various niche markets. Also, me and a buddy are about to start up a clothing line, and we have some huge celebrity endorsements, I am very excited. So, who knows, what can happen.

The best answer I can give you as to what I do though, is stay as small as possible. I have no employees, and when I need extra help, I have my mom who likes to do my packing and shipping for fun, kinda weird i know.

**Gaulkin** · 03-31-2008 08:57 AM

Do you have a website for all your products or you just do it locally?

**pboychuk** · 03-31-2008 09:02 AM

I mainly sell on ebay. I do have a website as well, I dont post my ebay name or website on this site because I dont want anyone to try to follow my lead. But, that does not mean I will not offer help to anyone who needs it, im not a complete jerk

**Gaulkin** · 03-31-2008 09:03 AM

Follow your lead as in steal you idea?

**pboychuk** · 03-31-2008 09:07 AM

Originally Posted by Gaulkin

Follow your lead as in steal you idea?

Yep, I have invested many years in leaning how to buy and sell etc. Also, I do tons of product research in choosing my markets, So, unlike a retail chain which sells all of one product niche, I have many product niches, each with a few different product.

**pboychuk** · 03-31-2008 09:07 AM

Originally Posted by Gaulkin

Follow your lead as in steal you idea?

Oh, and ironic you say steal my idea, maybe the reason I am not so trusting of anyone else is because I my business basically revolves around stealing ideas.