When you’re ready to buy a franchise the choices can be dazzling.  Getting it right financially is absolutely crucial to the success of your venture.

There’s no avoiding the issue – you have to know your budget to know what level of investment you can consider for your franchise.

So before you take any further steps, looking into your own financial situation is essential.

Once you have an idea of what you can afford, then it’s time to investigate your options.

The good news is that there really is something for everyone.

Select a franchise you can afford

If you have a minimal budget then it’s quite possible to purchase a business for less than $50,000.

Typically service franchises – either home based or mobile – can be bought on a smaller budget – ranging from $5,000 to $150,000.

As a business owner in this price range you could be running a cleaning and home maintenance operation, be providing financial advice and mortgage broking, helping educate the next generation,  supporting our senior citizens through aged care services, indulging your passion for pets or your technical skills as an electrician.

Always popular but with a heftier price tag, the food retail sector can provide a franchise opportunity from $150,000 to $1m+.

Fitness and wellbeing business models fall into this category too.

Prices will of course vary according to the specific business model and whether or not you are purchasing an existing business or a brand new (greenfield) site; whether the site is a traffic-magnet in a high footfall location or a smaller entry model like a retail kiosk.

But don’t forget the extra costs!

And then there are extras: equipment or vehicles may need to be leased and may not be part of the initial cost; there may be shop fitting and stock costs to take into consideration; purchasing a uniform could be an extra cost.

When considering the franchise models, look at what training packages are included in the cost and other incidental payments you may need to make around launch date that can add up.

As legal and accounting advice is absolutely essential for any franchise buyer, you will need to pay these costs, and perhaps fees for business registration.

The costs of running a business – such as tax and superannuation – can also be overlooked in the excitement of setting up your dream business.

And don’t forget working capital. Most franchisees will need to have some funds to get through the first weeks or months until the business is bringing in enough money to keep you trading and paying your bills.

So, you’ve got your budget, you’ve pinpointed the key sectors and brands in your investment level – now keep yourself on financial track with an appointment with a franchise-friendly accountant.