It is nice to have the interests and drive to start up your own franchising business. However, it is a fact that when starting a business or when you are planning to have one, the first thing you think about is where to get enough funds to start your business. 

Money is the bloodline of all businesses. The first thing you need to do is establish and assess your financial capability before you venture into any business, let it be retail, franchising, and many more.

And the question stands, how can I start my business with small or little money?
If you are into franchising business, here are some tips that can guide you on how to set up your franchise with limited funds.


Finding funds

Most franchise businesses if, not all, will always start with an initial franchise fee and start-up costs. Some will even require you for a down payment. So, the first thing to look into is to find funds from different sources.

Personal Savings

The initial action you might want to do is reach out to your own savings account. This is one of the best, if not the most effective and convenient method to do when you want to engage in franchising. It is also the safest since it will save you from the hassle and trouble that may be brought up when you borrow money from your family, friends, and other people. 

Plus, you do not have to worry about paying high-interest charges if ever you decide to take out a loan. 

However, if you are short of money, this method may not work for you, but there are still some ways that you can try to raise the amount of money you needed for your start-up business.

Find the Right Business Partner

One method that may work for you if you are short of money is finding a business partner. 
It is easy to sell your business idea to any people. But the question you must keep in mind is, are they the right people? 

Do not just find any business partner that can give you the amount of money you need, anyone with money to spare can give you the money, but finding the right business partner is a step closer to your dream franchise business.

You may have lessened the cost, which you need to pay up if ever you and your partner settled to paying half the total fee for the franchise. If this is the decision you want to choose, you and your partner need to talk about how to divide the burden for the costs and workloads. You also have to discuss your profit sharing at the start of the partnership. This is to make sure that you and your soon-to-be business partner are on the same page. 

The downside for this method is that you must carefully and meticulously pick your partner - someone who is trustworthy, honest, and responsible enough to start up a business with you. 

If you are lucky enough to find a business partner that has enough funds and shares the same business principle as you, you may have killed two birds with one stone.

You also need to talk about both of your expectations about the partnership to know where you and your business partner stand on this new partnership. You need to know about these things to figure out if that is the kind of business partner you want to have. You have to keep in mind that you are starting a business, and you will need someone whom you can share the work with, not just someone you can run to when you need money.

You can also learn a thing or two from your partner’s personal experiences and even a new skill set that might help you in the future.

Engage in bank loans

Another way is a traditional approach and that would be tapping to banks or credit unions. The advantages for choosing this method is that you choose from a variety of low and have fixed interest rates which may work for you as someone who is just starting up. You will have predictable monthly payments. 

You also have a new professional relationship with bankers which can be beneficial for you in the future. 

However, the downside is it requires lengthy paperwork and it might also require you a strong credit score. Also, it will usually require collateral. 

If you are not up for that, bank loans may not be for you. To further your exploration of finding out more ways funding for your franchise, check it here.


Research on Appropriate Franchise

After settling for a funding option that works best for you and establishing a stable monetary foundation, the next step you need to go into is to identify the kind of franchise you are interested in. 

There is a lot to choose from, even those you might not think of. In choosing for a probable franchise you ought to venture in, it is necessary to consider your budget for the start-up cost. As crucial as searching for a franchise of interest is, figuring out its start-up costs is also a necessity. 

The next thing to do is to identify if the start-up costs fall inside your allocated budget for the franchise. You can’t have a franchise that does not compliment your budget. 

Franchise start-up costs are usually high, so you really need an adequate amount of money at reach and maximize your budget efficiently and effectively because the profit from your franchise will not come immediately. The breakeven point might even drag for a while, and that is when your cost and inside flow of money are just breaking even, and you are not or only earning very little profit.

You also really need to consider a franchise that interests you and is aligned with your goals as a businessperson. Reflect on your strengths and weaknesses; what kind of business do you think you will most likely excel on? Think of your personality and skills, and which company will make all your traits of use? 

If you are still having a hard time deciding on what franchise you are interested in, or if you are reluctant to pursue franchising, franchise Philippines will provide you with the information you want and will motivate your inner entrepreneur. 

Franchise Market Philippines is an online platform that will provide you with tips and guidelines regarding franchising business. It is a free online source for the knowledge you need to start-up your game. If you want to learn more, franchise Philippines will provide you with opportunities, documented success stories, and even a free eBook for you as a beginner at franchising.

Make Your Business Plan

After you have considered other factors and choose your desired franchise, you need to have a firm business plan. This will keep you on track of your business goals and projections. 

Making a good business plan is an essential and strategic tool for entrepreneurs. This will help you focus on specific goals you would want to achieve for your business, may it be short-term or long-term business goals. Although the success of the company lies upon your ability to execute and implement these strategic goals, making a business plan is still a great way to keep you guided, and your goals and ideas tracked.

To keep you directed on how to make your own franchise business plan, read more here.



Money is essential in starting a franchise business. The items listed above are some tips on how to start your business even with just little funds. You can tap your own savings account, find the right business partner, or apply for a bank loan for your start-up costs. Deciding on which franchise you should invest in is just as hard as collecting or saving up for funds. It needs to be something you are highly interested in and in sync with your skills, personality, and goals. And of course, you have to have a great business plan to keep you directed towards your goals, long term or otherwise. 

Starting a business can be very challenging at first. Money is just one factor of all the problems that you will encounter as your business grows. With dedication and a deep passion for business, you can overcome anything as long as you explore different ways to overcome each problem.

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Disclaimer: Franchise Market Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments' or businesses’ websites. Please get in touch with us directly for any discrepancies.