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Find the Money To Fund Your Franchise

Find the Money To Fund Your Franchise

Franchise Article Author: The Franchise Guide

One of the disadvantages of getting a franchise as the business you will depend on the future is the monumental amount of money you will have to spend on getting it.  Franchise systems have the additional start up cost of a franchise fee aside from the infrastructure, personnel and equipments costs as compared to the regular type of business.  Because of this, many hopefuls have no other choice but to shelf their ideas and go for the less costly businesses they are thinking about.

One thing many people fail to consider however is the fact that because of the high success rate and low risk of a franchise, funding is actually more available for this type of business than on other types.  Banks usually are more amenable to providing a loan to a franchised business start up than a regular one.

For this reason, a business plan is an essential tool in convincing your franchisor as well as your creditor that you have thought about this idea and is confident that the growth of your business will be sufficient to pay off the money you have loaned.  For this reason, you have to be familiar about the general parts of an effective business plan.

The first part is the overview of all your plans.  Here you can present the summary of all your plans to give your reader a general idea of what your paper contains.  Important information like your projected return of investment, risk analysis, competitive strength, general strategies and market information are mentioned here to give your reader a way to quickly gauge the viability of your plans.  For this reason, you must keep this part as simple and as interesting as possible incorporating the most important facts about your business plan.

The mission statement section will tell your reader the core values or the soul of your business.  This part tells the reader what makes your company tick.  Are you out for profit?  Are you for service?  Your mission statement will show the core foundation you are building your plans on.

Industry analysis on the other hand will explain the viability of entering a particular line of business.  in this part, you should be able to show the increase or the decrease of the target market as a whole as well, the increase of the decrease in the level of awareness for the particular service or goods that the industry provides.  Included in this section are your plans on entering the market, your business’ strengths and weaknesses as compared to the other competitors in this field and your projections on where the industry is headed in the future.

Other sections include the demographic analysis of the market, your plans on marketing and advertising your business and the timetable to have set in meeting this goals.

With the business plan as a tool, you will find it easier to get that money you need to get the franchise that you want.

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