November is National Entrepreneurship Month, a time to celebrate innovation and the courage it takes to start something new. Many aspiring entrepreneurs have great ideas, but taking the first steps can feel daunting – especially during such uncertain times.
The Small Business Optimism Index dipped to 98.2 in October but remained above its long-term average, while the Uncertainty Index fell to its lowest level this year. With confidence stabilizing but caution still present, practical guidance is essential for entrepreneurs embarking on their business journey.
The truth is, entrepreneurship can take many forms: starting something new from scratch, stepping into a franchise model, or purchasing a tried and tested existing business. Recognizing the different paths helps prospective business owners align their ambition, resources and risk with the right approach.
Building from Scratch
Bringing a business idea to life in any economy can feel like a risk. Aspiring entrepreneurs should not begin this journey alone; seeking guidance from business leaders, advisors, or industry experts can help strengthen their strategies and ensure they anticipate challenges early on.
A comprehensive business plan with detailed financial projections including startup costs, revenue expectations, and cash-flow needs is best practice. Entrepreneurs should outline a clear path to profitability and long-term growth, entailing how the business will manage expenses, scale operations, and achieve sustainability over time.
As they develop their plan, entrepreneurs should reflect on a few foundational questions: Who are you serving and what problems are you solving? How will you reach your market consistently? What financial model supports long-term growth? What risks should you anticipate and plan for? Considering this in the first stages improves direction and ensures the business is crafted with purpose and intention.
While the formula for becoming a business owner may seem daunting, lenders and investors do not expect perfection. They expect clarity and preparation. A realistic business plan that reflects awareness of the market signals that you are serious about sustainability, not just the idea.
Exploring franchise opportunities
When people think of entrepreneurship, they often think of the first option – building a business from scratch. However, there are many other ways of becoming a business owner, and franchise ownership is one of them.
Exploring franchise opportunities starts with comprehension of how the model works. This means knowing how the business generates revenue, operation costs, and how royalties or ongoing fees are going to impact your business. Prospective owners should consider whether the industry aligns with their strengths, interests, and long-term goals, as well as determine their level of involvement. Some franchisees prefer hands-on, day-to-day roles, while others plan to hire managers and focus on oversight.
Since franchising is a long-term partnership, choosing a franchiser whose values and operational style align with your own is essential. This evaluation should also account for the financial requirements, including upfront equity, liquidity to support early operating expenses, and how the model’s full cost structure will impact profit margins. Thorough market research is key to understanding how well the brand will resonate locally and what will set it apart from competitors. It’s also important to know the full training, build-out, and launch timeline, specifically how long it may take for the business to become self-sustaining. Approaching these decisions with clarity sets realistic expectations and positions entrepreneurs for long-term success.
Purchasing an existing business
Another path to entrepreneurship is purchasing an existing business – whether a franchise resale or a family-run operation. This option offers a proven model with established revenue, clearer profit margins, and insight into how the business performs within a specific market. For many first-time entrepreneurs, the existing operating history provides added reassurance and reduces uncertainty that comes from starting from scratch.
Things to consider:
- Financial Health of Business: Review previous financial statements and cash flow trends to gain clarity on profitability and overall stability.
- Reason for Sale: Learning why the current owner is selling may reveal potential risks or opportunities.
- Customer Base and Market Position: Evaluate the loyalty and diversity of the customer base and how the business competes with the local market.
- Operational Structure: Assess employees, leases, equipment, systems, and vendor relationships to establish a picture of what you’re inheriting and what may need improvement.
Choosing the Right Financing Path
Securing financing is an important step in the process of starting a business, but financing is about more than qualifying for a loan. It is about making a significant personal and financial commitment, understanding the risk involved, and ensuring you have the right support behind you.
Financing may also seem like it is one of the final steps you need to take when starting a business, but that couldn’t be further from the truth. Connecting with your community bank from the start can unlock resources, expertise, and tailored options. For example, ConnectOne Bank’s acquisition of BoeFly allows the bank to offer specialized financing solutions for entrepreneurs and franchise owners. So, working with your lender early can open you up to an entire network of people to support your venture.
“The right financing strategy doesn’t just fund your launch – it shapes your long-term stability. If you’re putting $100,000 into a franchise, you should still have meaningful liquidity available after the check clears. That cushion allows you to weather early bumps in the road and gives lenders confidence that you’re positioned for long-term success. A strong lender should help you understand the full capital needs of your business, ensure you’re properly structured from day one, and stay with you as your needs evolve,” says Mike Rozman, CEO and co-founder of BoeFly.
Different business types require different financing strategies, each with unique capital needs and underwriting requirements. Entrepreneurs should choose the structure that best aligns with their goals and recognize the full range of options available to them, such as SBA versus conventional loans.
Financing should not be viewed as a single hurdle, but as the start of a long-term relationship with a lender who understands your business and supports its growth. The strongest partners stay engaged, offer guidance, and help you navigate opportunities and challenges as your business evolves.
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Becoming an entrepreneur demands boldness, preparation, and the right financial foundation. Whether launching a brand-new concept, purchasing a business or stepping into a franchise opportunity, success starts with a clear plan and informed financing decisions. With the right guidance, resources, and mindset, aspiring entrepreneurs can turn ambition into action and create lasting impact in their communities.
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