Now you’ve pinpointed the franchise you want to buy, it’s time to approach the banks for finance.
But, before you do, it’s vital that you develop a business plan to support your case for a loan. Take your time – a good business plan involves effort and research, and demonstrates to the bank that 1) your idea is viable, and 2) you have strategies in place to reach your goals.
There are many good free business templates around, but we recommend covering the following points as the basis of your plan:
- Provide a resume detailing your past experience and qualifications. Explain what you (and any other partners/directors) have done in the past.
- Explain why you have decided to purchase this franchise, and what research you have done into the franchise system and franchising in general.
- Provide some information in relation to the business location. Where is it? What other businesses are around it? Is there any other pertinent information regarding the site?
- Help to justify the numbers in your cash flow. What did you base them on? If this is an existing business, how do you intend to improve profitability?
- In relation to the lease of the premises, whose name will the lease be held in? What are the terms of the lease? Are there any options?
- How do you intend to run the business, covering staffing and the hours you intend to work in the business (i.e. provide a proposed roster)? If this is your first multi-site operation, how do you intend to change current practices to suit a multi-site business?