Want to start up .. in life

[Irene03]

Hi,
I'm having a mid life crisis. So thought I'd seek out some advice .
Here goes
So I'm unemployed , have 2 little boys (not so little now ) .
I get rental income , so that's how I pay my bills .
I have property , which if sold will allow me to have a comfortable life .
But am not looking at that now . The property price will escalate in 10 years time due to its location .I want to sell it when my kids are big ...to finance their college if need be .

My problem now is , I need to start up something as all the money that comes in gets fully spent on household , education etc.
Sometimes it's not even enough , I have to use my credit cards and other forms of finance to make ends meet.
I really want to start a business , like a franchise so that I can generate some income .

Given my situation , can anyone advice on how I should go about financing any new venture that I should have an interest in .
I am keen on a franchise but the startup will cost me a bomb , for rentals , employment , furnishing electricity etc.

Would really appreciate some advice .

[bjl584]

How can you be sure your property will be worth more in 10 years? A lot of people probably were saying the same thing in 2007. Then, 2008 happened. Just something to think about.

What is preventing you from finding a job? It sounds like you need to boost income. A job, even a part time one, is where I would start.

[Fishindude77]

My two cents worth. You need to take action now so the hole you are in doesn't get any deeper.

First, get some form of a job regardless of it is your chosen field, so you have some additional money coming in.
Second, if you can sell that property at a nice profit quickly, do it and use the funds to clean up any debt, keep a roof over your head and support your routine expenses.
Third, the kids future college needs are the least of your worries right now. If they really want to go to college, there are ways to accomplish that without tapping your nest egg.
Fourth, put the start up business plan on the back burner for now. When you have solid job bringing in decent income with some benefits, etc. you can start thinking about that in your spare time.

[Bob B.]

The property price will escalate in 10 years time due to its location .

That's called speculation.

I agree with the others. You need a steady stream of income, and need to eliminate debts before you consider investing in a franchise.

[snafu]

Be careful what you wish for...

Bates' Research Underscores Three Harsh Realities:

'Many franchisees never make much money. Average profitability is poor, especially after taking into account the purchase price of the franchise. So take the hype used to sell franchises with a big pinch of salt!

"Studies" used to sell franchises are paid for by the franchisors. Don't mistake the information provided for balanced consumer guide information. It's a carefully engineered sales pitch. Getting hold of the information you need to make a rational buying decision is difficult, to say the least. So use your common sense and a healthy dose of cynical discretion.

Franchise agreements always favor the franchisor. It is very easy to be swept away in the heat of the moment and get into a binding contract that is not in your best long term interests. And it is very hard to get out of a franchise agreement without taking a big financial loss. Remember, the main purpose of franchising is to make the franchisor wealthy. So be careful.
A study by Dr. Timothy Bates, a professor at Wayne State University in Detroit, found that the franchise failure rate actually exceeded 30 percent and that franchises made lower profits than independent entrepreneurs. Dr. Bates' study also found that the average capital investment of franchisees was $500,000, compared to $100,000 for independent entrepreneurs.'

My problem now is , I need to start up something as all the money that comes in gets fully spent on household , education etc. Sometimes it's not even enough , I have to use my credit cards and other forms of finance to make ends me

Using credit cards to provide income can easily turn into a downward spiral. You need to control the money rather than have the money control you!

Do you have a written budget? Do you know where every dollar goes? Do you give every dollar a 'job? How much have you paid in interest since the start of 2015?