Because we know what it feels like to be a startup franchisee, we’ve kept our entry costs low. Let’s break the initial investment into three parts:
- Working capital – we think you should have working capital that equals 10% of the total contract value of your builds. This is not an expense, rather capital you’ll need to have access to in order to safely operate your business.
- Startup package – a well planned startup package means you keep more in your bank for working capital! Upfront costs are 25k plus a 10k Grand Opening advertising allowance. This is an “at cost” package that includes:
– A new laptop (always start a new business with a new computer)
– Initial setup of the Stroud Homes software system.
– Training and travel allowance
– Uniforms, stationary and marketing items to help “Stroudify” your office
- Sales Venue – our builders typically start with a shopfront. We usually keep fitout costs surprisingly low because our suppliers support us by providing most of the fit-out materials at no cost, and we have been successful at negotiating “rent free periods”.
To learn more about initial investment we recommend that you book a business planning meeting
with us where you will be able to learn:
- How Stroud Homes builders are able to fund the startup of their business (Tip: Most builders don’t have their startup capital sitting in a bank account)
- What the typical first year in business looks like.
- How many jobs you have to win.
- About how to project when you will get your money back and start to make money.
Other miscellaneous costs
you should budget for when establishing a new business may include:
- Legal and Business fees
- Adviser/Accountant’s fee
- Setup of business entity
- License, registration and insurances
- Travel involved in due diligence