Some business franchise involves a huge amount of money that you need to borrow from the lender in order to make your franchise a reality. To convince your lender that you are worthy of their money, you are required to submit a business plan.
The lender will use your business plan in order to assess you if the prospective franchisee will be successful and will become profitable. To approve your loans, a lender wants to have clear vision of the business to be opened and knows the idea when the borrowed money will likely be repaid. A business plan is a document that defines how a business is going to achieve its goal.
Here are structures of a Business Plan
- Executive Summary – It is the overview of the entire business plan. It includes the detailed description of the business including its services and the products. Also, it states the overview of the industry and how it distinguished itself from its potential competitors.
- Company Description – It contains information about the franchise and its history. It provides a short outline of the franchise’s service/product.
- Service/ Product Description – It describes the product or services offers by the franchise.
- Financial Projection – It includes the overall budget, current and projected financing. Also, it contains the time frame when the lender can expect full repayment of the loan with figures, charts, and graphs showing the start-up costs, projected profit, and sales forecast for the franchise
- Market Analysis – It discusses the market size, kind of people lives to the market, competitors and forecasting of products in terms of trends the growth possibilities.
- Marketing Plan – It involves on how to get more customer so it includes marketing strategy such as franchisor’s advertising and marketing efforts.
- Management Plan – It contains the people who will be responsible for the day to day operation of the franchise including the owner. Also, it includes the qualification of each person and all experience that is relevant to being successful with the franchise operation.