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.