Writing an Effective Franchise Business Plan
In excess of 90% of franchise owners in the UK operate businesses that are profitable according to the annual national survey carried out by the British Franchise Association, so its easy to see why the banks have confidence in new franchise businesses.
In addition, the popular lenders are making use of the governments Enterprise Finance Guarantee scheme. The Enterprise Finance Guarantee scheme was created to grant government underwriting of funding for the development of small businesses up to ?1million.
When seeking finance to fund a franchise business you should prepare a well thought out and well written plan for the development of your franchise business. Each plan for franchise development that you submit to the banks for funding for your business needs to outline at least the following:
1. Careful background research of the franchise of choice
2. Clear understanding and concordance with the franchise contract
3. In-depth local market analysis by the new or existing local franchise owner
4. Profit and sales projections and the affect of local competitors
5. Declaration of available investment capital
6. Personal assets that are available to use as security against the finance arrangement
7. A good credit history with no CCJ’s
8. A commitment to follow the franchisor’s proven system
9. Support of your family members in the start up of your franchise business
10. The chosen franchise is identified as effective and effective from its own independent research
In view of the above the bank will come to a decision on the level of funding it will provide to the business start-up.
To assist with your business planning, spend a little time visiting the online business sections of potential lenders as most of them provide free software tools needed to assist in building your business plan logically, helping you draw together the essential information that the bank will need to properly understand your plan and make a lending decision.
Nick Strong is MD of Select Your Franchise and is one of the leading experts to the Franchise Market in the UK.
For further information on franchising visit our Marketing Franchises section.
Processing your request, Please wait....
