Get Funded: Create a Franchise Business Plan and Access Capital
Accessing capital for your franchise business startup is critical for your company’s success. Most lenders require a business plan to fund a business. A business plan allows funding sources to determine the future viability of your business. The following are essential elements of your business plan:
The executive summary contains a brief overview of your business and the information you’re providing in your business plan.
The executive summary section should answer the following questions:
Which service, product, or need, does your business serve?
Is your business unique?
How will you ensure your company’s success?
What skills do you possess that will help the business excel?
The executive summary is the reader’s first impression of you, your business, and your business plan. It is a written version of your business pitch. It should clearly define your business and everything it has to offer in a way that distinguishes your concept.
The executive summary should read as a separate document to introduce your business plan. It should only reference material that you’ve provided in the business plan and use appropriate language for your target audience.
The business description section summarizes your business. This section should contain your company’s structure, mission statement, history and future projections. While you don’t need to provide detailed financial data, you should include an overview of your industry, fiscal projections, and relevant business facts.
You should include company goals in your business description. The business description is your opportunity to share short and long term objectives for your business with your reader.
Make sure your business goals are reasonable and quantifiable. Avoid ambiguous terms. Use specific language and time frames to precisely explain what you plan to achieve.
The competitive analysis section of your business plan summarizes your industry. This includes relevant historical information, financial data, customer demographics, and future estimates of potential growth in your sector.
Marketing and Sales
This section highlights your business’s strategy for building and maintaining a customer base and demand for your business. Thoroughly explain how you plan to advertise, your current advertising, and your research behind your strategy.
Operations and Management
This section highlights your attention to detail. Include your company’s staffing, logistics, day-to-day operations and solutions to potential problems that could occur in the operation of your business.
The financial data portion of your business plan should reflect and expand upon any facts and figures previously mentioned in your business plan, including your executive summary. This section provides hard numbers for your business costs, current funding, and expected funding necessary in the future.
The pro forma is similar to the financial data section. It focuses on future sales, costs, and projected financial statements.
Consider speaking with an accountant or financial advisor to verify your estimates and validate your proposal to lenders.