Buy Franchise?

Rodney has the investments to open up a national franchise on his own, so Dave gives him some plain advice on going about it in a wise manner.

QUESTION: Rodney is debt free but the house. He makes $60,000 a year and wants to start a store with a national franchise. It will cost him $250,000 to start it, and he has $320,000 in personal, non-retirement investments. Should he do it?

ANSWER: I hate to give you this answer because you are so emotionally invested in it, but let's look at some stats.  The Census Bureau reports 64% of small businesses started onless than $5,000.  Not that every business has to start like that, but there may be other businesses you might look at.

You also mentioned having investors, which is a great way to find yourself not able to run your business the way you see fit if things start going bad.  You've got the money to cash flow it yourself, so I'd recommend you being the sole owner to avoid answering to a Board of Directors everyone month.

You're being smart about this though so I think you'll make the right choice.  Whatever you do, don't go into debt to make this happen.

Jump-Start Your Goals!

Jump-Start Your Goals!

Get our 8-Day JUMP START series and weekly newsletter that are packed with articles and tools to help you win with money.

Reach Your Money Goals

Reach Your Money Goals

Start with a budget. Join the millions already budgeting with EveryDollar!

Create My (FREE) Budget

Thank You!

Your 8-Day Jump Start is on its way to !