Preparing a successful business plan

Preparing a successful business plan

 

By Richard Holden, head of franchising for Lloyds TSB Commercial

 
Franchising is playing an increasingly important role in supporting enterprising individuals who are setting up their own business, as it provides them with the reassurance of a proven model.

The UK franchise market continues to display strong growth, in spite of the current economic conditions.

Brands with a successful track record over several years that have prospered through the ups and downs of the economic environment are well placed to offer you the opportunity to build a successful business of your own.

One of the cornerstones of launching a franchise is ensuring you have access to the necessary funding, which is where a strong relationship with your bank can be vital.

And beyond funding, banks with specialist franchise departments, such as Lloyds TSB Commercial, will be able to give guidance to support your franchising research.

Before approaching a bank, you need to prepare a business plan, the importance of which cannot be overstated. Those with a strong plan and a sound capital base are well placed to take advantage of available finance. The franchisor may provide some assistance with the plan and most banks can provide a template to guide you. 

The initial objective of the document is to help you raise finance, but it will also help you understand what you wish to achieve from the business and to review the performance against your projections, alerting you to anything that is not going according to plan.

The presentation of the plan is also important to create maximum positive impact. You should practice delivery of your plan before speaking to a bank manager so that you can communicate your passion in a professional manner.

It is worth remembering that well established franchises generally have much higher success rates than stand alone start-ups, therefore some banks may be willing to consider lending a higher proportion of the total set up costs.

Lloyds TSB Commercial remains at the forefront of the expansion of the franchise market through its provision of banking services and finance to encourage new franchise ownership.

We have 50 trained franchise managers located across Britain, ensuring a true ‘on the ground’ presence. Wherever you are in the country, there will be a franchise manager available to guide you.

If you are attending the National Franchise Exhibition, you can speak to our franchise managers at the Lloyds TSB Business Planning Clinic on Stand M130.

For more information on how Lloyds TSB Commercial can help your franchise call 0800 681 6078 or visit www.lloydstsb.com/franchising
 

*Any property given as security which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All lending is subject to a satisfactory credit assessment.

Calls may be monitored or recorded. Lloyds TSB Commercial is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to £15m. Authorised and regulated by the Financial Services Authority. Licensed under the Consumer Credit Act 1974 under registration numbers 0004685 and 0198797 respectively. We subscribe to The Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk