How Vets Can Finance Franchises through Crowdfunding

Rome wasn’t built in a day, but it did take a heck of a lot of people to do it.

For military veterans looking to franchise, there are significant franchise-fee discounts and other reduced costs to encourage them to become a franchisee.

But what about raising the rest of the capital needed?

In recent years, crowdfunding – gaining the capital needed to start a business from a large group of people – has become increasingly popular, and should be considered by vets looking to become franchisees.

Donor-based crowdfunding driven by good will, communal interest

For starters, donor-based crowdfunding is perhaps the most convenient for new business owners. It involves financial backers donating money to help get a new business off the ground, who often donate because they want to be part of a new and exciting idea or they believe in the product or service.

In addition, sometimes a business will offer crowdfunders products, services, or other perks in exchange for their donation.

Investor-based crowdfunding gives donors piece of the business

This type of franchising is more capitalist-rooted in nature, where investors will buy into a business to seek a share of returns and equity.

In both cases, the long-term benefits for vets becoming new franchisees are created from the communal buzz of the crowd-sourced marketing.

Crowdfunding grows buzz, facilitates community engagement

One of the major advantages of crowdfunding is the initial marketing it gives to the new franchise. From the buzz surrounding the crowdfunding campaign and engagement on Facebook, Twitter, YouTube, and other social media, the community gets involved in the discussion around the new franchise.

And, if the crowdfunding campaign is a major success, it gives a huge indication to the franchisee that the franchise will be success right off the start, too.

To learn more about entrepreneurship through franchising, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.

You may also register by calling 866-246-2884.