The new year brings new opportunities for existing business owners and brand new entrepreneurs. Our team has looked carefully at the emerging trends in business ownership and financing, and we can confidently say 2015 will be an exciting year.
Consider these three business trends as you look forward to 2015:
1. The franchise industry will continue to grow
In 2014, the franchise industry expanded faster than the rest of the economy, and employment gains outpaced total private sector employment by 0.3%. This expansion is projected to continue into 2015. Entrepreneur released its list of the Top 500 Franchise Rankings from 2014. Quick service restaurants take two of the top five spots, and continues to be the largest franchise sector.
Top 5 Franchises in 2014:
Franchise start-up costs vary greatly as the industry is incredibly diverse. Some franchises (Jazzercise, Inc. and CleanNet USA, Inc) can get up and running for as little as $4k – $10k while others may require significantly more. According to Franchising.com, the average start-up costs for a franchise run between $50,000 and $200,000.
In 2014, Finance Store helped many entrepreneurs fund their first franchise as well as open additional locations and territories. We offer many funding programs to meet the needs of almost anyone looking to open a franchise in the new year.
2. Alternative Finance will continue to be called upon by business owners
2014 brought more attention to business directed retirement accounts, or BDRA. With a BDRA, business owners finance their business through their existing retirement account with no penalties or taxable distributions. With a BDRA, business owners move IRA funds into a self-directed IRA. Then, an equity investment is made into the business.
Not just for start-ups, a BDRA can also be used to purchase an existing business or franchise. You already plan on dedicating your time and effort into growing your business. Putting an investor’s or your own retirement funds into your business allows you to start a business debt-free, allows for faster profit, and still build funds for your retirement.
3. Traditional Lending (SBA) will also continue to open up as the economy improves
The GDP increased by 4.6% in the second quarter of 2014, and then increased again by 5% in the third quarter. According to the Bureau of Economic Analysis (BEA), other third quarter highlights included a 3.2% increase in consumer spending and a rise in business investments. As the economy continues to improve, traditional lending opportunities will continue to be available to more businesses. Finance Store helps many business owners navigate the process of securing an SBA loan as well as maximizing our relationships with hundreds of lenders.
Express Business Loans will also make a footprint in the lending landscape. Finance Store works with a number of lenders and can secure true business loans with as little as 6% interest. Contact us to learn more about the Express Business Loan.
2015 is going to be a great year for business owners and entrepreneurs. Seasoned and first-time business owners will find an increase of financing options available, the economy is projected to continue its growth, and franchising offers a wonderful opportunity to more and more business owners. Let’s work together to get your dream of business ownership started.
“I’m convinced that about half of what separates successful entrepreneurs from the non-successful ones is pure perseverance.” -Steve Jobs