Essential Tips for Financing the Launch of Your Business

Starting a business also means knowing where to find the right funding. Personal contributions, local support, business plans, and relationships with banks… discover the key steps to bring your project to life with confidence.

Essential Tips for Financing the Launch of Your Business

Are you considering starting a business but still unsure about how to finance your project? Here are some essential tips to guide you.

1. Have a sufficient personal contribution

Any business creation requires a financial commitment from the entrepreneur. Before getting started, it is essential to have a readily available personal contribution.

The required amount varies depending on the sector and the scale of the project. For example, opening a restaurant will require a much larger contribution than starting a personal services activity. Whether you are starting alone, with partners, or within a franchise network, this initial investment remains a crucial step.

2. Explore available financial aid

If your personal contribution does not cover all the needs, it is useful to tap into support programs. In many countries, the government and local authorities offer programs to encourage entrepreneurship: grants, tax exemptions, honor loans, specialized support…

Thorough research helps identify the solutions suited to your profile and project.

3. Build a solid business plan

Good financing primarily relies on a clear and realistic business plan. This document serves both as a roadmap and a communication tool. It should:

  • Set precise revenue objectives;
  • List all expected expenses;
  • Provide a working capital to support the launch.

A thorough market study is essential to test the viability of the project and adjust forecasts. The support of an accountant is recommended. In franchising, the franchisor’s experience can also highlight key success ratios and guide you to financial partners.

4. Master your numbers to convince banks

Obtaining a bank loan is often necessary to complete the financing. During meetings with banks or investors, it is crucial to demonstrate control over the project’s financial aspects.

Presenting the file yourself, even with an accountant or the franchisor present, remains decisive: human interaction matters in the decision. It is better to be precise and ready to answer all questions.

Do banks always finance projects?

In a context marked by rising interest rates and economic uncertainties, funding is still available but criteria have become stricter: larger contribution, solid profile, proven experience.

In many African countries, where franchising is sometimes unfamiliar, it may be necessary to explain how being part of a network reduces the risk for the banker (and the landlord).

Note: about two-thirds of franchisees believe that being part of a network makes it easier to access financing.

By the editorial team of AfricaFranchise.com