If you’re thinking of becoming the owner of a franchise, and you’re planning to apply for a small business loan, creating a franchise business plan is a must-do item. Keep reading to find out why you’ll need a business plan for your new business.
The Importance Of Franchise Business Plans
Unfortunately, a lot of today’s small business lenders are looking for reasons to say no to your small business loan request. Now, it’s not that they’re anti-business…not at all. It’s because of The Great Recession back in 2009. In a nutshell, that’s why they’re still a bit conservative when it comes to lending money for startups-whether they’re franchises or not.
Small business lenders get paid to do two jobs:
1. They’re paid to protect the their employers-the banks
2. They’re paid to increase their banks’ loan portfolio
So, if they want to get paid (a bonus or a commission) they have to find a way to get your franchise loan approved. And, if your loan gets approved, you get to open for business.
“Without a business plan as a baseline, it will be far more difficult to track your progress, make adjustments, and have historical information readily available to reference when making difficult decisions. But creating a business plan ensures that you have a roadmap, not just outlining where you plan to go, but where you’ve already been.”
– Noah Parsons, LivePlan
Make It Easy For Them With A Good Business Plan
There’s one thing that can greatly increase your chances of getting your franchise business loan approved: a strong business plan that includes a complete plan outline. I’m talking about a franchise business plan outline that includes not only facts and figures, but an executive summary.
That said, putting together a business plan isn’t as hard as you think; you just need to know what to include in it and make it compelling.
Now, you don’t have to know everything about business planning to create your franchise business plan. You just need some type of template.
Franchise Business Plans: What Should Your Biz Plan Include?
1. An Executive Summary
2. Target Market
3. Products and Services
4. Marketing Plan
5. Milestones and Metrics
6. Sales Plan
7. Company Overview
8. Management Team Members
9. Financial Plan
11. LivePlan Software
5 Important Tips For Creating A Franchise Business Plan
Make sure you include these 5 things in your franchise business plan:
- A description of the “problem” or issue your product is responding to by being in the market.
- List others in the market who are doing-or about to do, is similar things and why are your product (s) is better
- List the people and/or businesses that will buy your product or service
- Give specific examples of how you’ll be marketing your products or service
- Describe who you are. Name the top reason why you are the right person to start this business
Great Quotes About Business Plans
“Every business plan needs to include information on competitive analysis. It’s one of the most important points in your plan and should always be includes, even when you’re just doing an internal plan but especially when outsiders will read it.”
– Tim Berry, Palo Alto Software, co-creator of the business plan software shown on this website.
“Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy in place to set yourself up for success.”
– Yogi Berra
“Going into business without a business plan is like going on a mountain trek without a map or GPS support – you’ll eventually get lost and starve!”
– Kevin J. Donaldson
The Bottom Line
The importance of having a solid business plan for a franchise can’t be understated.
Try this business plan software LIVE for 60 days and get a 100% refund if you’re not satisfied.