Hiring The Right People
Many franchises - such as food, hospitality and...
As you likely already know, your net worth comes into play when you're looking to join a Canadian franchise. The requirements will vary by franchisor, but there's often no way to get around these net worth requirements.
If you're below the net worth level set by the franchisor, you may think you'll never be able to join that franchise. However, you can build this up using the tips below.
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Make a personal balance sheet
You need to know what you owe and what you have. This may be a basic approach, but it is a good starting point for knowing what your net worth is. Create a sheet with your total assets on one side and debts on the other. Your net worth is what's left after you subtract the debts from the assets.
Be sure to check your asset side twice. People often miss assets, forgetting about things like valuable collections or debts owed to them.
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Acquire some assets
It may be easier said than done, but getting assets that are worth more than they cost you will raise your net worth. If, for example, you buy a car for $25,000 but it's worth $35,000, that's a net worth increase of $10,000. While things like cars aren't liquid assets--something that can be quickly converted into cash without losing value--they do add to your overall net worth.
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Sell some assets
Consider turning some of your other assets into cash. Maybe you have a collection with value that's just gathering dust. While this should already be a part of your balance sheet, selling them will bring you closer to whatever your liquid asset goals is. Technically, this won't build on your net worth, but having some extra cash can be helpful.
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Get back to the basics
There is rarely easy money, so building a net worth will demand some discipline in the basics. Increase your income so you have more cash--if you are an employee, for example, maybe it's time to ask for a raise. If you own a business already, it could be time to raise prices. Reduce your spending; you never know where money is being wasted until you look. Last but certainly not least, increase your savings.
Once you complete the steps above, you'll have a real understanding of how long it will take until your net worth meets the franchisor's requirements. Stay on course so you can finally join the brand you're looking to invest in.
