Whether it’s starting from scratch or buying a franchise there is a lot of risk. It’s scary.
You probably saved up some money and now you’re walking up to the table to “let it ride”. Please remember you’re not only risking the money you have but it’s future value and even the additional capital that may be needed. You might turn your hard fought $100,000 savings account into a realized loss of $400,000 let alone the growth of your savings if you would have just left it in a simple interest bearing account.
Have you heard that your leases, loans, franchise agreements and other commitments will require personal guarantees? So even if unfortunately after many months of losing money & your business shuts down, you’re going to be paying rent on the empty space per the terms of your lease.
One of the biggest… oh let’s say… “disappointments” in a business not succeeding are the personal guarantees. Most are under the impression that when your business closes down it just goes away. There’s more to it than that. The implications and commitments can go on after you closed the door.
Nobody starts a business thinking they’ll fail. It happens though. It’s important to understand not just the cash you’re risking but a much bigger impact… future money.
Plan for what’s the reward but also what’s the risk, ok?