Whether you're launching your first franchise, expanding to additional units, or transitioning from corporate life to business ownership, choosing the right funding strategy is one of the most consequential decisions you'll make. Before selecting a path, ask yourself these key questions:

​

 

• Are you buying an existing business or starting a new one?

• Do you have the cash necessary to cover the capital injection most loans require?

• What are your short-term and long-term goals?

• What is your exit strategy — and how long do you plan to own the business?

 

​

One of the most common — and costly — mistakes new franchise owners make is undercapitalization: having enough capital to open the doors, but not enough to sustain operations until the business reaches breakeven. Every new business has a breakeven point — the moment when revenue finally covers all operating expenses. That moment is often further down the road than owners anticipate.