When people begin looking at buying into a franchise, such as a home care franchise, they will likely be advised not to spend every dime they have in savings on this opportunity. Yes, they may have enough financial resources to afford the franchise, but there should also be some extra to help cover basic living expenses and other costs during the first few months this franchise is open.
So, how much is enough?
Every situation is different. It’s not a fair answer, but it truly is the best one to offer. Every individual has different monthly expenses for their own life and family. For example, a person who managed to put away $20,000 in savings over time might have enough for a franchise they’ve always wanted to become part of, but what if they still have a mortgage? What if that mortgage is $1,200, they have $500 in utility and food expenses, and another $1,000 in miscellaneous expenses?
If they spend all of their savings, how are they going to get the $2,700 every month just to live on?
Home Care Franchise: How Much Money Is ‘Enough’ in Reserve When Starting a Home Care Franchise?
Then, you also have to consider payroll and other business related expenses moving forward.
That is an important consideration to make. When you open any business, a home care franchise or you start something from scratch, there will be some length of time between opening this business and truly bringing in revenue that helps you cover your business related expenses.
So, for example, there will be payroll starting almost immediately. You’ll also have to consider marketing this business so you can bring in clients. If you have a lease on the office space, you’ll also likely have utility expenses. You may need equipment if the franchise company does not provide it.
Now, how much is enough?
It’s advisable that you have at least six months of personal living expenses covered by savings. You should also have several months’ worth of financial resources to help you cover the initial expenses, including the aforementioned payroll you will start incurring once this business is open.
A quality home care franchise company will provide a good estimation and sit down and figure out whether this is truly an opportunity you should invest in right now or if it would be advisable to wait a little bit longer until your financial reserves can provide the comfort you need.
Remember, it’s not about being “comfortable,” but rather successful. If you put yourself in a bind right from the start, the stress is going to be overwhelming and the odds of failure increase dramatically.
If you have questions about franchise opportunities with Golden Heart Senior Care Franchise, please contact our office at 1-800-601-2792, or check out our form at https://goldenheartfranchise.com/apply-now/.