If you’re thinking of becoming the owner of a franchise, and you’re planning to apply for a small business loan, franchise business plans are a must-have. Keep reading to find out why you’ll need one.
The Importance of A Business Plan For A Franchise
Today’s small business lenders are looking for reasons to say no to your loan request. Now, it’s not that they’re anti-business…not at all. It’s because of what happened in 2009: The Recession.
So they’re still a bit conservative when it comes to lending money for startups-franchise 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
Make It Easy For Them
There’s one thing that can greatly increase your chances of getting your franchise business loan approved:
Submit a solid business plan.
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, you need to make it compelling.
Now, you don’t have to know everything about business planning to get your franchise business plan done. You just need some type of template.
5 Important Business Plan Tips For A Franchise
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