Speaker 1 00:00:04 Hey, everybody. Scotty Mylo, Scott Mylo, franchise Coach, another episode of All Things Considered Franchising. What's your why and know your No. Um, I'm, I, I'm really elated today and, and to start off 2023, my podcast season, uh, with not only someone who is an expert in the field, but somebody who has, uh, become, uh, actually her and her husband Steven, uh, have become very good friends of ours, and I've gotten to know pretty well. Um, and somebody who, as I said to you, is an expert in, uh, business finance, start off financing, whether it's a franchise, an independent, uh, her concentration is mostly in the franchising space, but has worked outside of that box. Um, and somebody who, um, you know, just within the industry has a great reputation of just, you know, when we use that word, no, knowing about financing and the best direction. And I'm, I'm, so, I'm, I'm really elated to have Diane Rosen Krantz with me today, uh, who is a senior consultant from Tenant Financial, um, creeping up on 14 years. Hello, Diane.
Speaker 2 00:01:16 Good afternoon. How are you?
Speaker 1 00:01:19 Oh, well, you know, uh, I, I can't think of a better way to start 2023, uh, with my podcast season than having you on board because I've known you, you are probably one of the first people that I met, uh, on the vendor side going back a long time ago. Uh, we won't go into, uh, all the details, but, uh, you were actually friends with my wife before I knew my wife, <laugh>,
Speaker 2 00:01:44 Small world.
Speaker 1 00:01:45 It is. So, um, Diane, uh, let's get our listeners caught up a little bit about your background, how maybe you got into franchising before we go into the Devil, and the details about what you do for your clients, uh, you know, and tenant. But, uh, tell me a little bit about your history in the franchising industry and, um, you know, your thoughts on franchising as we, uh, now gear up for, uh, 2023.
Speaker 2 00:02:11 Okay. Absolutely. So, pertaining to franchise funding, it's a super exciting area. There are so many possibilities for people and franchising is the way to go. It's that proven methodology. It's following the recipe. It's following in the footsteps of those who have proceeded before and who have now wanting to join on that bandwagon and, um, become entrepreneurs. And so within that space, and knowing how that has increased year after year for number of decades now, the financing has tweaked a little bit, but sometimes it just goes down to some of the basics. So it's, uh, a great way to start off the year and to know that we're helping new entrepreneurs on your side, finding the right opportunity, and with our guidance, helping to secure the proper funding, uh, to get them in it. I have attended hundreds over the years of franchise conferences and shows. Um, it is so tremendous to learn the breadth of the industries that, that you can help people out in. And, and then knowing that it goes hand in hand, find the business, pre-qualify yourself and learn what's possible. So my background in connections and training and customer service and, um, financial consultation have led me to where I am today.
Speaker 1 00:03:40 Yeah, no, it, it, it's, it's a great tenured, uh, history background, uh, you know, in your career. Let me ask you this, Diane. You know, one of the questions as a consultant and talking to my clients is when somebody should really start looking at financing and financing options, uh, as a consultant, I believe, and kind of really try to encourage my clients to get involved in this sooner rather than later. Uh, kind of like buying a house. Uh, you know, you wanna get, you know, not so much pre-qualified, but you really want to know where you wanna be on the financing side, really, you know, kind of really where you can be, how much you're gonna be able to borrow based on your scenario, your portfolio. So in your, your, your expertise, your history, when would you recommend that somebody really start getting involved in the financing side? Uh, when researching and looking at possibly entering into a franchise or, uh, you know, investing in a business?
Speaker 2 00:04:47 Alright. And that's a great question. And as you alluded to, really, the sooner, the better a person does wanna know what is feasible, you'll wanna know your credit scores, you'll wanna know how much cash really is liquid or can be liquidated. Can they make use of other funds that they have? So a person, really, they use that terminology. You are have champagne taste on a beer budget. <laugh> name is a person who says, wow, I wanna go look at houses. I'm gonna tell the realtor I'm looking for the $700,000 houses. The realtor's gonna say, let's back up a bit. What can you really look at? Ultimately, it might be in that scenario, three or 400,000, but it's always good to have an idea of what you as the borrower or the individual buying a franchise can bring forth. And what is that in the realm of meeting the criteria and needs of different lending products? The sooner the better,
Speaker 1 00:05:51 Right? So it, it's safe to say that if somebody is interested in business ownership, even before they take a deep dive into brand presentations, learning about different brands, that it's almost better for them to have that financial consultation, that financial guidance, just to get a kind of preview, also get an understanding of what, uh, their, uh, uh, commitments are gonna be. Or what could, they could be first before they take that deep dive, or at least simultaneously as they're working to look at brands and, and, and, and do that prediscovery on brands,
Speaker 2 00:06:31 That, that's correct. That we actually have a banner when we're at a, at a show and it says financing first. Right? And so it definitely is the first step, and it's realistic. Some people might not be aware of certain things that are on a good track, or maybe a person didn't realize collateral was needed, or they thought that they could borrow money to then borrow money. So funding first is a great slogan.
Speaker 1 00:06:58 Right? Right. You know, a couple of things. You know, one of the things that I try to educate my clients on, uh, is, and, and, and sometimes the question comes up, why do people fail in franchising or in business ownership? Uh, to me there are two immediate, I mean, outside of the realm of you're not following the process. You're trying to, you know, reinvent the wheel. You're trying to, you know, come up with the marketing, uh, ideas for the brand. But one of the two things that really come to mind about people who kind of, you know, fall flat on their face and really have to kind of swim up street, is that they're under capitalized and overcapitalized. And what I mean by under, you don't go in with enough pre-planning, financing your business, really taking a realistic look at how long it's gonna take to build up doing your due diligence. And then on the other side, the overcapitalize is, wow, well, look, if I can get x I might as well go for a y and not realizing that, well, you know what, you still gotta pay back y What are your thoughts on that? I mean, what's your advice to people when you're looking at financing a business, how to really kind of take a, a, a good look at it on what really makes sense?
Speaker 2 00:08:09 Alright. And, and your true, true, uh, comments are that the largest percentage of businesses that do fail are simply because the person is under capitalized. So, in the realm of a person looking at a new business venture, they're gonna likely be given the guidance of a, the funding will cost, and the total project between X and Y. And an individual certainly would not wanna just start with X, because that would be the bare minimum, maybe not including much work in capital. The person on the other side wants to, you know, do their due diligence to help determine what really might be that right buffer. And so, right in the terminology, a person is going to have the greatest chance of succeeding if they are at least partially over capitalized. That would not mean a person that says, all right, all in absolutely positively, I'd never need more than 300,000. You don't wanna get a loan for 400,000 because as you said, you've gotta pay that back. But if in that realm between that x and y 300 is the month includes even more working capital and more wiggle room, that would be a great spot in this example for the person to be a person has never gone out of business by being properly overly capitalized.
Speaker 1 00:09:36 That's a great way of putting it. That's a great way of putting it. Uh, as I mentioned to, uh, our listeners, uh, you know, you're with Tenant Financial. You have been for, you know, over 13 years now. Uh, it's, it probably seems like a lifetime to you. Um, but, uh, there are many different ways to finance a business, to finance a startup. Uh, people don't realize that. They simply think it's, I can walk into my bank and I can shake my hand, shake the, uh, my banker's hand, and they're gonna gimme a check to start a business. I think, uh, you and I can probably chuckle about that and know it's not gonna work that way. There are lending institutions and programs that specialize in working with individuals who are looking to start a franchise. And one of the reasons that banks like to work with franchising is, is that it's a proven model. It's successful, and most times there are more successful franchises than there are failures. Um, maybe take us through a little bit about what tenant does it's specialties, some of the other services, and maybe some of the other loan programs that are out there that people should really, that you'd like to review are as options with people that come from consultants like myself that you're talking to.
Speaker 2 00:10:48 Okay. Absolutely. So in the realm of franchise funding for a startup franchise, there are absolutely two avenues to really contemplate whether a person wants to use their own money as a non debt option, whether that's some cash or tapping into 401k, or I RRA funds. There's a program that allows people to use those funds penalty free and without taking a taxable distribution. Now, if we're gonna just quickly pivot to the debt type of options, there are a couple of different types of S B A loans, and if the franchise is on the registry, there will be loans that might go up to 150,000. For a startup business, it's called a working capital loan. And that's an exciting option that does not require much cash injection mm-hmm. <affirmative>. But then for larger loans, we're saying, for example, two, three, 400,000 on up the SBA loan called the seven A loan is for those larger projects.
Speaker 2 00:12:01 And those are loans that are backed by the government. We at Tenant Financial work with many SBA lenders. And just to give a little, uh, tipping of the cards, the lenders are looking for the borrower to come forward with. In general, for a startup business, 20% of the total project cost would be your non borrowed liquid cash. The lender's gonna look for cash reserve as well, and then as a different type of debt aside from the S B A, which is a loan in the name of your new venture, like your L L C mm-hmm. <affirmative>, there are also personal loans. Those are based strictly on your credit scores, your credit history, and your income. And those would be loans in your name. And sometimes a person might combine personal loans and tapping into retirement dollars, or for the larger loan, the S B A seven A loan that's gonna require more cash injection and cash reserve. Many people will couple the rollover option tapping into those pre-tax retirement funds as your non borrowed injection for a larger loan. And that two piece puzzle then closes the loop.
Speaker 1 00:13:25 Right. So let's focus on, let, or let's, let's, let's just chat about the Robs the rollover, the, the, the, the, uh, the pre-tax, uh, no pre-tax or taxable penalties or whatever we want to call it, because it, it's funny, the program for the Robs has been out there for many, many years, yet I still have many clients who jump out of their seat saying what I can use my retirement funds to start a business. Um, you know, so the first thing is first, don't go out and quit your job because the Robs program does require that you're not working or employed by the person that's administering your 401k. So tell us a little bit more about that Robs program, because it has become a very popular program, the finance of business, especially when we talk about baby boomers, people that have really built up those retirement, uh, funds or programs. Tell us a little bit more about that program and how it works.
Speaker 2 00:14:23 Okay, absolutely. So the nickname for the service that's called a Rollover as a Business Startup. Rollover As a Business startup, the nickname is Robs. Now, again, we did not create that nickname because in reality, who would nickname a funding product? Robs so <laugh>.
Speaker 1 00:14:46 That's true. Not Mary. Not Bob, not Pete. It's Robs <laugh>. Yeah.
Speaker 2 00:14:50 So people are like, really? So just clarify, we didn't make the nickname. What it really is, is a self-directed 401k. And actually you're, you're spot on. This option has been around since 1974. And almost everyone that I'll be introduced to or connected to, who may have learned about it from someone just like you, Scott would say, I'm a reader. I know about this. I'm involved in financing. And I've never even heard about this because everyone realizes what they knew from back in the day, don't touch your retirement funds cuz you'll get hit with taxes and penalties. Well, in this option, it's the actual opposite. If a person has pre-tax funds like an ira, traditional ira, or they had a 401K from a prior employer, they could tap into any portion of those pretax funds penalty free. And without taking a taxable distribution, no matter whether they're in their thirties, forties, fifties, they are not gonna get hit with that 10% early withdrawal penalty.
Speaker 2 00:16:06 Right. And they are not gonna get hit with taking out that money as a taxable event. For example, if a person had a hundred thousand dollars in a pre-tax ira and they called up their broker and said, I must take this money out asap, if they didn't do the rollover and they're, let's say 55 years old, they'll probably lose somewhere near 35 to 38% of that money when they get wow hit with taxes and penalties. But with the rollover option, they're, they're actually investing in themselves. They're using those funds to buy privately held shares of stock in their own business. And that's the aha moment for people. So you, you're not buying stock of Google or Amazon or Coca-Cola, you're buying stock of your corporation.
Speaker 1 00:17:03 That's interesting. You know, um, it's an interesting program. It works really well. But, and, and, and, and to be straight with our listeners, it is a very highly regulated program and it is kind of watched there, there, there's oversight on this. It's, it's not that you can take out your a hundred thousand dollars and then go out and buy a Maserati or a Porsche or go out and take a trip around the world, the expenses and the association, the distribution of that money is closely watched. And I think, if I'm correct, is that that's one of the benefits of working with an organization like yours and yourself tenant, that they help you with that oversight and prepare you for the that year end and that, that and, and making sure that the documentation is right, that it doesn't become a penalty. Correct.
Speaker 2 00:17:56 That's exactly correct. So at tenant, not only do we help a client set everything up properly, we'll create your C corporation, we'll design and install a new 401k that is able to accept that old retirement dollars. But going forward, the ongoing annual administration is equally important as to how everything was set up properly. We're proud to say that our clients' four oh <unk> plans and all the years have never been audited by the I r s. We have a very, very dedicated, very experienced team at the backend of this, doing the compliance, the record keeping ins, amendments, because the i r s if they get wind of an issue, like you alluded to, if a person's trying to escape the process or do something impro proprietary, a person does need to have an accountant for their corporation, but our team is gonna do all the required documentation in the filing with the I r s person. Can't try to avoid that. So we're keeping clients on the straight and narrow.
Speaker 1 00:19:10 Right. No, that's good because that's an important part. Uh, you know, I've always been a believer that, you know, uh, to do things right. I mean, you definitely don't want to, uh, a knock on your door at midnight. And, uh, you know, with a couple of guys in suits, uh, <laugh> asking for all your receipts, so to speak. I think, uh, our, our listeners kind of get it now when we look at, um, the, the Robs, which is a very, very popular program, yet not as known as what we call an sba, a small business administration loan, um, there are a lot of misnomers about the SBA loans. Um, there, you know, I, I need this, I need that. There are a lot of things that the S B A says that you don't have to have, but if somebody is going to consider an S B A loan, what type of credentials should they have as far as maybe liquidity, uh, net worth, uh, credit score, um, you know, uh, I like to call it skeletons in a closet, so to speak. Wh where does somebody really kind of fit in to qualify for an S b A loan?
Speaker 2 00:20:17 Okay, excellent question. So right off the bat, the credit scores, a person's gonna want their credit score to be 6 85 or better, and a person could easily check that. Um, annual credit report.com. Right. Credit Karma. So credit score is absolutely important. Also, for the larger loans, for example, ones that are over 200,000, your liquid cash cannot be borrowed. It can't be someone lending you money and then you say, oh, I've got my 20% skin in the game. A person would have to have that, uh, liquid cash savings, checking money market. So 20% as your injection, and then you do need that buffer cash reserve. Typically, the lenders are gonna be looking for that buffer to represent about 10% of the total project cost. So for loans that are greater, the ones that fall into the category of a seven a loan, in addition to good credit scores, good credit history, cash for the injection and reserve, the bank's gonna be looking for collateral. That would've very likely be equity in your house or your condo, or you might own an apartment complex or whatever it may be. But they're gonna look for collateral because the written rule is they must go after any available collateral. Another important thing is a person's debt to income ratio. Right.
Speaker 1 00:21:51 I was just gonna say that. Yep.
Speaker 2 00:21:53 If a person quit their job got laid off, left work, and they literally do not have investment income or rental properties, if their income is basically zero, yet they have monthly expenses, rent, insurance, et cetera, their debt to income ratio is not going to appease the lender. But that person might have a spouse or a partner or a friend that was gonna piggyback with them. So within the individuals that are gonna be on the loan, someone must have a very good debt to income ratio where their salary is at least more than three times their debt. Um, and so there are many variables, um, and with regard to the smaller loan, it's a little bit less of a cash injection. A person that is trying to get that smaller loan that goes up to one 50, they must currently, or in the past have been a homeowner, that smaller loan is an unsecured loan in the name of the business. It does not require collateral. But to qualify, you must show that you've had a mortgage
Speaker 1 00:23:06 Or have an existing mortgage.
Speaker 2 00:23:08 Yes, exactly.
Speaker 1 00:23:09 Right. No, that's interesting to know that, that, that that's quite, and I think our, for our listeners, the mindset of these conditions is that they don't want someone taking that a loan, getting into a business, starting up a business, and not having the wherewithal to be able to put food on the table, pay their bills, keep their lights on, keep the heat going, put gas in the car. I mean, that's the mindset here. It isn't because, hey, we don't trust you or don't think, you know, you gotta prove to us you're gonna be a good business owner. It's that they, they don't want people kind of walking around on their knee stub, so to speak. Correct. I mean, yeah. That, that, that's the best way to put it, I think.
Speaker 2 00:23:46 E exactly. And in addition to that, if a person already has a business and they want an s b a loan for a new business, they must prove that their existing business is in good standing and profitable because the bank wants to protect themselves. They wanna make sure that the loan for the new business is in no way at all going to be helping the old business.
Speaker 1 00:24:12 Exactly. Good
Speaker 2 00:24:13 Point. And you alluded to the skeletons. If a person had a bankruptcy and it wasn't discharged, um, or it was discharged recently, they're usually looking for that to be in the rear view mirror seven years or more ago. And so there are many, many layers and many nuances regarding the loans that we could always tackle on a person by person basis.
Speaker 1 00:24:38 Now that's interesting. Again, you know, I think, you know, going back to our initial, uh, starting point, I think it's important for everybody to have an understanding of these obligations and programs as you start to think about business ownership because, uh, it can creep up on you pretty fast. I mean, I always equate it to a new car, you know, it's, it's, you got that new car smell, but until you make that first car payment <laugh>, and when you make that first car payment, that new car smell goes away pretty quickly. So it's, uh, it, it, it, it's, it's knowing what your obligations are, knowing your No, um, you know, one of the questions that I always get from people who may not have all the qualifications to get an S B A lo, obviously there aren't a lot of qualifications for the, the role over the Robs program, but it, you know, the frustration I get, Diane, is that people say, well, you know, I I I I, I wanna start my own business.
Speaker 1 00:25:33 I mean, you know, I, I, what am I supposed to do here if I don't have that liquid or, you know, have that cushion? Um, and, and that comes from a lot of people that maybe be, uh, veterans or, uh, other people, professionals, uh, people that have, uh, uh, uh, spent time in the service, uh, service-based, uh, services to the, to the country. What do you recommend for people who may not be exactly where they need to be, uh, but, you know, should really look at how to get there as far as financing or, or being able to get into business, uh, for themselves?
Speaker 2 00:26:08 Okay. Um, in that scenario, probably looking at two things. If we're looking at likely a smaller investment for someone who, you know, is a little bit, uh, shy on things, the two important things are gonna be credit score and your liquid cash. Certainly ways to benefit credit, your credit score is to have less debt. So the goal is to always have your utilization of any credit card under 50%, and the lower it is, even if it's closer to 30 or 35%, the lower your debt on your credit card on each and every card, that will in turn increase your credit scores. Um, so people might also have to save a little bit more. Maybe they had aspirations for the first quarter, but they realize that it might take them till quarter two, quarter three, or quarter four. So lowering debt is gonna put them in a better position to help get that credit store to 6 85 or better.
Speaker 2 00:27:12 And also, every franchisor is gonna be looking for how much do you have right now in liquidity, right? Savings, checking money market. If that amount is very negligible, then that's going to create the need for more borrowed money, which is going to therefore be heavily reliant on is your income in the fifties, the eighties, the hundreds or beyond, and how much greater than 6 85 can your credit be? Uh, if it's a smaller cost item and the retirement dollars are not in this equation, and it's not gonna be the larger loan, the individual for $150,000 loan would need to have about 17,000 liquid that they're gonna be using for this $150,000 project. A little bit of reserve beyond that and credit over 6 85, and that might be that entry level. Okay. Oh,
Speaker 1 00:28:16 All right. Good, good. That's good advice. I mean, that's good, good sound information. Um, one of the groups that you've worked with, uh, people that are interested in startup businesses, starting their own, kind of building their, uh, entrepreneurship, uh, building their legacy. Um, you've worked with a lot of veterans, you've done a lot of speaking to veteran groups. Uh, you're kind of that reachable person, uh, to, to reach out to as far as somebody who can help veterans. Uh, for all our veterans out there who, you know, deserve the opportunity for their service to start up a business or get involved in business, are there any opportunities for them if they, you know, as far as additional programs to help them, uh, with a startup?
Speaker 2 00:28:59 Okay. With regard to that, we, at our company, at Tenant Financial Group, for any fees that we charge, if a person is a veteran, we discount the rollover option. If they're a veteran, we're gonna discount anything relating to the larger or the smaller S B A loans. In the past, probably going back more than five or six years ago, there was a loan that was really earmarked for veterans, and the terminology was a little bit different. Some of the expectations, that particular loan does not exist on paper today. Um, but I know, know that many franchisors offer incentives and discounts, and we as a funding resource do as well.
Speaker 1 00:29:49 All right. You know, one of the things that some of the franchise ORs do, uh, and again, I always kind of caution my, uh, my, my clients, uh, kind of read the, between the lines. There's a lot of franchisors, not a lot, but there are franchisors out there that are gonna offer what we call in-house financing. Uh, you know, give me X amount of dollars, a percentage of the franchise fee, let's finance it. And then after a certain amount of time, uh, you can start paying it back over and above the royalty structure or whatever the terms and condition. Do you have any feelings or, or, or thoughts on programs like that? I mean, I know there are the, you know, if it's, if it walks like a duck and sounds like a duck, it is probably a duck. So, I mean, do you have any thoughts about, you know, and I know there are a lot of people that are anxious to getting the business, but okay, sometimes signing your life away, um, <laugh> before you even start, before you even have your first customer. Any thoughts on that? I mean, any, yeah,
Speaker 2 00:30:49 That's a really, really good point. If we look at it in, in Realisticness, the franchisors there to self franchises, two qualified people that are gonna be a good addition to their, um, growth and their success over the years, the franchisor is not there to be a bank. So generally, there might be some franchisors that offer some funding. It might be a small piece of the franchise fee. In reality, they're not going to be giving that away at a, at, you know, no interest or two or 3% like, you know, car loans used to be in the past. So it's, it might not be cheap, uh, and therefore a person has to analyze it depending on a person's drive in ambition and knowledge that they're putting in their blood, sweat and tears, and they're gonna be putting in those hours to make that business successful. Some people have more of a ability to take on a little more debt than they thought, or the terms might not be perfect, but they want to get in and start working. But usually loan rates from a franchise or might not be terrific.
Speaker 1 00:32:06 All right. Uh, let me ask you another quick question here about, um, the, the current state of affairs, uh, with where we are economy wise. I mean, we all don't have a crystal ball, but I, I think we're all hearing, they may not be whispers anymore. They may be loud whispers. Uh, people are talking about a recession. The feds are talking about, uh, you know, additional interest rate hikes. And, and in your opinion, and, and, and, and in your tenure in this industry, you've been through recessions, you've been through incredible growth, economic growth. Is there, should people be concerned or paying attention to these conversations? Uh, or is it more of fear mongering, or should p I mean, where do, where do you stand on all this? Because, you know, oh, there's a recession company. I'm not opening a business. And we all know that there have been brands out there and people that have flourished in recession, recession resistant type brands. But any thoughts on that? Any thoughts on how the economy plays a part in all this?
Speaker 2 00:33:13 Yeah, that's, uh, it's almost like a double edged sword with that. And people have to believe in what might be affecting them in the short term or the longer term. And you're absolutely right. No one has the crystal ball, but literally we all remember 2008 and the layoffs and the changes. Then, um, everything is gonna be in a cycle. You just don't know how high or how low things are gonna get over the years. The S B A rate, which is a variable rate, it's based on what the Wall Street Journal prime rate is, and generally then adding two and three quarters percent above that in the last six months, that interest rate has gone up close to three points, 3%, which is huge. Um, and literally sh shortly before Covid, you know, the rates might have been in the sixes or near seven the rate now, which is a variable rate, which again, a small, uh, detour.
Speaker 2 00:34:25 Those just as those rates have gone up and could creep up a little bit more in a 10 year loan, and that's what all S B A loans are, 10 years, that rate is going to change, and therefore there will be, when the economy gets to its betterment or its point of, um, you know, cycling through to the next trend, the rates will go down. They are high right now, but it again, is this the right time? And there are absolutely, as you just said, there are some businesses that thrive during a recession, right? Just like businesses that thrive during Covid. Not all of them, but some. And they also feel that the success rate of franchises is way higher than a mom and pop type business. Um, so people need to know what their timing is within their own job position, family, their liquidity, and, you know, analyze, is this the time to embark upon the venture, right? Take hold of themselves, become entrepreneurial, put their game hat on, just like you've got <laugh> and, uh, it's, you know, there's, there's always a right time to make the right decision.
Speaker 1 00:35:40 Last question, Diane, uh, before we ask pe uh, before you give us some information on how people can reach out to you, um, outside of the Rob's program, uh, because that is self-funded, um, and there are no interest rates, quote, interest rates and penalties as we've discussed, are there, when, when you're looking at term loans through some of the banks, um, and again, not all banks finance term loans or SBA loans for franchises, right? But are there certain categories, types of franchises, categories, not names of franchises, but are there certain categories that ebb and flow with where the economy is? And is there a kind of a hot button right now where banks are saying, or s b a people are saying, Hey, those are really strong types of businesses, we want to get people, help people finance those businesses?
Speaker 2 00:36:35 Um, well, some of the businesses that are recession proof that therefore do not have, um, more of the impacts, um, if it's a non-food concept, um, generally the banks are gonna have a great appetite for things in the senior market or scenes in the education or kids animal franchises are taking off. Um, service-based in general, um, is, is is a market that is always gonna be strong recession or non-res recession timeframe. Um, things that are perhaps seen as true luxury or over the top things that might be extremely expensive for a certain type of brick and mortar. The banks are a little bit shying away from that. What I've seen, I'm talking about businesses that might have a three or half, $4 million price point. Um, the banks their saturation,
Speaker 1 00:37:37 Right? And to put our, our listeners at comfort, you don't necessarily have to have quote, industry experience within that brand to order to qualify for an SBA loan. I think there's sometimes people say, Hey, well I've never done that before. Why would anybody give me a loan? That's the beauty of a franchise, correct?
Speaker 2 00:37:59 Yeah, it sure is. And that's what so many people might not have realized. You do need to put together a business plan that's gonna re reflect your experience that might be transferable. Uh, but you're also, as a franchisee, gonna go through extensive training. And that's the beauty of that model versus a person trying to create the, the wheel or the, or the process themselves, right? Um, and so the, the breadth of your experience and or people that you're partnering with or bringing along for the ride, um, is going to be helpful, but certainly you did not need to fit in the space of that. Also within your business, you might be hiring a, a dog trainer, a a fitness person, or a person that had that medical background for something, though it's not you, yourself. And so you align yourself with the right team to make your yourself much more favorable in that industry.
Speaker 1 00:39:01 Diane, this has been a wealth of information for our listeners today. I mean, uh, obviously as we stated in the beginning of this, uh, recording this podcast that, you know, financing is an important part of the evaluation of getting into business and knowing where you wanna be and knowing what you qualify for is very important. If somebody wants to get a hold of you, Diane, what is the best way for somebody to get in contact with you? Um, we'll be putting it up on the screen as I mentioned to you, but what is the best way for somebody to just reach out? Maybe they just have some general questions. I think that's one of the great things about you is, is that you're always open and have a passion for this industry and willing to talk to people and make sure that they understand what you know they're committing to.
Speaker 2 00:39:44 Oh, absolutely. Well, well, thank you. So I'll share my phone number, which you could call, you could text and I'll repeat it twice. 4 1 3, 3, 5, 4, 4, 6, 6, 2, 4, 1, 3, 3, 5, 4, 4, 6, 6 2 or my email, Diane, d i a n
[email protected]. And tenant is t e n e t.
Speaker 1 00:40:26 Well, thank you Diane. We'll be putting that up so people have a little bit more of a visual on it as well. But again, I thank you for your time, Diane. This has been very informative. Again, this is Scotty, my all things Considered franchising, Scott myles franchise coach.com. What's your know and know your why. Uh, we'll catch you on the, uh, next time on, uh, uh, all Things Considered Franchising.
