Franchise financing is a very important beginning of starting your Business plan. Do you really need to make a business plan? The short answer is yes. The importance of a comprehensive, thoughtful business plan cannot be overemphasized. Many factors critical to business success depend upon your plan: franchise financing, equipment leasing, commercial real estate finance, outside funding, credit from suppliers, management of your operation and finances, promotion and marketing of your business, and achievement of your goals and objectives.
Some people assume that if they are not going to seek franchise financing support from lenders or investors to open their business that they don’t need to prepare a business plan, but every business should have one. Writing a business plan serves as a road map for your venture when you’re starting out. It can help you figure out many key business elements, including:
- What you will need to do to get started and what resources (time, franchise financing) you will need to expend
- What it will take for your business to make a profit and how long that will take…will you need a commercial real estate finance loan?
- What information potential customers, vendors and investors will need to know in order for you to market your business effectively
- Writing your business plan also forces you to think about your business objectively. When you’re done, you will have a more realistic idea of the effort it will require and whether it’s a venture you want to pursue at this time.
Even if you are starting a business from scratch or looking at a franchise you want to create that road map on how you’re business will be executed. A plan will help determine projections of profits, expenses, and if you need financing to start. Franchise financing is just one solution we offer our clients.
When it comes to franchise financing, we have the ability to get the financing you need. Financing a new business or purchasing an existing business can be challenging and lenders look at a new venture as risky, especially if you are a first time business owner. Lenders however like franchisers because there is a history of sales and a corporation to back you up.
It’s best if you can obtain the credit you need using business credit instead of personal credit so that your personal assets are not at a full risk. Also lenders are apt to loan more money to a business than to an individual.