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Tips on writing a Franchise Business Plan

Written by: Nick Strong

Article Overview: Over 90% of franchisees in the UK run profitable businesses according to the annual national survey carried out by the British Franchise Association, so its easy to see why many of the well know high street banks have confidence in new franchise businesses. Furthermore, the banks are making much use of the Enterprise Finance Guarantee Scheme.

Tips on writing a Franchise Business Plan

Over 90% of franchisees in the UK run profitable businesses according to the annual national survey carried out by the British Franchise Association, so its easy to see why many of the well know high street banks have confidence in new franchise businesses.

Furthermore, the banks are making much use of the Enterprise Finance Guarantee Scheme. The Enterprise Finance Guarantee scheme has been designed to grant government underwriting of funding for the development of small businesses up to £1,000,000.

When looking for finance from a bank to fund a franchise you will do well to go with a well thought out and well written franchise business plan. Every franchise development plan that you take to the finance lenders for funding for your business needs to outline the following points as a minimum:

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 on the business in the light of local competitors

5. Declaration of your liquid capital available for investment

6. Detail of any assets which can be used as security for the finance

7. No issues showing on your credit history including CCJ's

8. A declaration of your commitment to adhere to the proven system of the franchisor you have chosen

9. Commitment of support from your family in your new franchise business

10. The chosen franchise is identified as well run and profitable from its own independent research

Against the above items the lender will decide the borrowings it will provide to the business builder.

To assist with your business planning, take time to look at the online business sections of the high street lenders as many provide free business planning software to assist in building your plan correctly, prompting you for the important information that the lender will need to understand your plan and therefore decide if they can lend you what you require.

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Article Tags: background research, borrowings, british franchise association, business builder, business planning software, business sections, finance lenders, franchise business, franchise businesses, franchise contract, franchise development, franchise owner, franchisor, guarantee scheme, liquid capital, national survey, profitable businesses, proven system, street banks, street lenders



Related Forum Posts
Business Innovation - Hi Simon If you can finish off the Business Plan and think about your strategic direction or how you are going to use your product to convince people it's a great idea, it will set the foundation for your programming project. You see, when you are looking for funding you will need a Business Plan and Strategic Plan that will convince companies to invest into your new idea. Has anyone achieved this idea before using another industry besides health and fitness that you know of? You should also design some mockups as a "preview" for your programming project. This will also help reduce your programming costs as everyone will know exactly what you want if you have detailed mockups already completed including any functionality you require. Starting mockups for websites and software applications on paper is the best way if you're not a guru in graphic editing software.
Business Tips - How about: Tips for managers to handle employees more effectively? Tips on how to deal with difficult customers? Tips on how to deal more effectively with suppliers? The only three I have in mind right now, but will try to come up with something else. Chris
New Small Business Topic - Hello everyone, I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section? Here's a list of what we currently have: Angel Investors Branding Bank Loans Business Coaching Business Plan Franchises (New) Insurance Legal Marketing Public Relations Sales Small Biz Loans Venture Capital
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.


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