Creating a business plan will not only help you receive financing, it will also become your guideline for success. Every business should have a business plan. I have seen many small business owners write their business plans and then file them away. They end up never looking at them again. You should think of your business plan as a roadmap to success.
Why Do I Need a Business Plan?
Any small business owner or potential franchisee should create a business plan for their business or franchise. One of the main reasons you will need to write a business plan is to obtain financing from a bank or any other lender. A business plan will help your lender understand exactly what he or she is investing in. It also defines the reasons you need financing, exactly how you are going to spend the money and the terms of payment.
Another reason you need to create a business plan when buying a franchise is to set your own personal goals. Any investment you make should always be researched, well thought out and follow a certain structure. Creating a business plan will keep you on the right track and help you focus on achieving your goals.
Always Update Your Business Plan
Don't let your business plan collect dust! As your business changes, so should your business plan. Your business plan is your roadmap to success and should be updated as you learn more about your business.
Your Roadmap to Success
You should treat your business plan as much more than just a required document from a bank. Your business plan should plot out all of your financial goals and projections. As you need help with your business, you should refer to your business plan.
All business plans should have a mission statement. Your mission statement should be a very strong motivational statement that will motivate your employees and managers. Post a copy of your mission statement for all to see!
Help Writing Your Business Plan
Whether you are writing your plan from scratch, following an established format, or using a computer-generated template, you should do research and get input from your franchisor and other professionals.
Most franchisors should be able to assist you with information you need to write your business plan. There is certain information a franchisor is not allowed to share with you, such as earnings claims. In addition, the franchisor may refuse to review your business plan. If they approve it, they may be violating federal and state requirements that they must follow.
If you plan on hiring a franchise attorney, he or she can add valuable input. You can also ask your accountant for some advice, since he or she usually has experience obtaining financing for their clients.
The Challenge
Creating a business plan may sound very challenging and time-consuming. I am not going to lie: it is very challenging and very time-consuming, but it will be a very rewarding experience.
