Often Overlooked, Additional Funds are Critical
When you’re opening a new business, setting aside cash for startup costs is essential. If you’re considering the i9 Sports franchise, you’ve likely noticed that we discuss startup costs on our website. A portion of the startup costs falls under the category of additional funds. You might be wondering what that is. It’s pretty simple.
Additional funds are the amount we recommend you set aside so you can cover operating costs in the first few months of your business when you’re still ramping up revenue. Think of additional funds as seed capital that you’ll tap into as needed.
Save, save, save
One of the mistakes that independent business owners make is not saving enough cash for the early months of their new business. That can leave them cash-strapped when it comes to marketing, which is especially critical when launching a business.
It’s actually one of the reasons why a lot of new independent businesses fail within the first year. Often business owners don’t give themselves enough resources to build their customer base before they run out of money. It’s essential to have the funds for robust advertising, among other things.
Another reason additional funds are critical is to have a cushion for personal living expenses. It may sound silly, but a lot of new business owners put together cash flow projections for their business without accounting for the amount of money they will need for personal expenses. Like any other business, it takes a while before you start taking money from the business.
How i9 Sports helps
One of the advantages of running a franchise is that we can advise you about how much money you should set aside for your new business, and we can provide a go-to-market strategy that helps you ramp up revenue to achieve break-even and then profitability.
Another benefit is that each of our franchise owners meets regularly with a personal business coach. Our experienced business coaches have been new owners themselves and have advice about how to use those additional funds well.
To find out more about i9 Sports and our business model, fill out the form on this page to download our free franchise report.