Category: Finance & Funding

Do you remember the days when, in order to get that bank loan to buy a house or start a small business, you had to don your best Sunday suit and go and meet with THE BANK MANAGER? If he was suitably impressed, you would get your loan or bond and he would then keep a beady eye on your account, on how your business was doing and how the repayments were being met. FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus on transformation. www.fasa.co.za …

Financing options In general anyone wanting to finance a business has three basic options: Use your own money – this is by far the quickest and simplest route to take but not many people are in that fortunate position. Borrow money from others – this might be an informal loan from family or friends or a formal loan from a lending institution like a bank; or Get others to invest in your business – this means that they will own a part of your business and share in the profits and the decisions. FASA Franchise Association South AfricaTo protect, lobby, …

South Africa has the biggest vehicle market by sales and exports global contribution of just below 1% of new vehicles. The automotive aftermarket sector has recovered to pre-pandemic level in 2021 thanks to the franchising business format, whilst workshop revenue was still below that of 2019. The industry continues to face a number of challenges such as semi-conductors and global logistic bottlenecks, the electricity crisis and fuel prices hikes. The global shift to electric vehicles has fast-tracked the local production to service the growing global demand as we export more than 60% of our vehicles to the EU market. Thamsanqa …

When it comes to franchise funding it is crucial that Franchisors have answered all the required policy requirements to prove that the Franchisor will be compliant to enable the Franchisee to apply for funding seamlessly. The franchisors reputation with the institutions will then be viewed favourably to expedite loan applications. Consider these Facts: The National Development Plan was created to eradicate poverty and reduce inequality. The SME sector is 52% of the GDP, which is approximately 1 trillion Rand of GDP. 90% of jobs will be created by the SME sector by 2030. This is where the government’s focus began …

August 2021: According to the latest pre-COVID-19 statistics recorded in late 2019, the South African franchising industry contributes 13.9% to the national GDP with an estimated turnover of R734 billion and is one of the most resilient sectors already showing signs of recovery. Jeremy Lang, General Manager at Business Partners Limited, encourages entrepreneurs to explore the opportunities available in the franchise sector. FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus on transformation. www.fasa.co.za …

In general anyone wanting to finance a business has three basic options:  Use your own money – this is by far the quickest and simplest route to take but not many people are in that fortunate position. Borrow money from others – this might be an informal loan from family or friends or a formal loan from a lending institution like a bank; or  Get others to invest in your business – this means that they will own a part of your business and share in the profits and the decisions. While most small businesses startup with money from friends …

Clem Sunter, renowned futurist and scenario strategist in a book published in 2015 entitled Flagwatching, wrote about how important it was to identify the flags changing the world as we know it. One of the flags was the increasing likelihood of a global pandemic due to higher rates of international travel and the growing concentration of people in megacities. Likewise, the transmission of viruses across different species was a major concern as was the appearance of multi-drug resistant varieties of bacteria. At the time he quoted Louis Pasteur, the remarkable 19th century French microbiologist, who in a moment of pessimism …

Financing a business, especially a franchise business, goes beyond just having some capital to start – you need to factor in everything from start-up capital to ongoing financing; from hidden costs to expansion funds. The financing of a franchise is always a huge hurdle that needs to be overcome through thorough research and careful planning. This is the one area of your business that needs a level head, clear thinking and to a large extent, a realistic approach. Don’t be afraid to ask your prospective franchisor, your financier and yourself these pertinent questions. Ask the Franchisor…. How much will my …

Most businesses need capital before they can really get going. As a small business owner, you generally need equipment, materials and stock, as well as money to pay salaries, rent, telephone etc, until your business becomes profitable. But before going into the different ways that you can find finance to grow your business, you need to have thought clearly about what your business will do, how you will do it, what it will cost, and how much money you will make. To obtain finance, a prospective business owner needs to convince the bank or investor that he will be able …

With the shock decline in gross domestic product of 3.2% in the first quarter from a 1.4% expansion in the prior three months, can government live up to its post-election hype and deliver on its promises? This contraction, the highest in a decade, puts South Africa at risk of slipping into a second recession in successive years and has all sectors, including the franchise sector concerned for its future. FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus on transformation. www.fasa.co.za …

It is a known fact that, in franchising, you can expect to get the same product or service at every single of the brand’s outlets – no matter where they are. So, you can expect the Big Mac to taste the same whether you bought it in Beijing, Buenos Aires or Bloemfontein. Similarly, the service you get from PostNet or Cash Converters should be the same both here, in their mother country of Australia or anywhere else around the world. Who are the magic elves that ensure that the ethos and systems of a franchise brand are consistent throughout the …

If you are thinking about investing in a franchise you should keep the adage, “if it sounds too good to be true – generally it is” in mind when investigating franchise opportunities. Statistics often claim, quite rightly so, that when purchasing a franchise, you are more likely to find greater success than going into business as an independent. Whereas independent businesses have a 90% chance of failure in the first five years, franchise failure is under 10%. However, the buyer must remember that there are always risks involved, and that they can reduce them if proper homework is done. Our …