Richard Holden – Head of Franchising, Lloyds TSB Commercial
Richard Holden, head of franchising at Lloyds TSB Commercial, believes that the devil’s in the detail when it comes to securing bank finance:
A business plan is a prerequisite for any franchisee looking to launch a new enterprise, or expand an existing one.
A well written plan should focus on key objectives, setting realistic and attainable goals. It should be seen as a work in progress, rather than a static document and should be subject to a regular review based on the evolution of the business.
There is plenty of advice available, from lenders, professional advisers, fellow franchise owners and also the franchisor. This support will help ensure that the business plan ticks all the right boxes and provides the details necessary to make securing finance a reality.
A good business plan will go a long way to helping individuals secure finance, yet it will also act as a reference point through what will be a very busy time, setting out key objectives and the timescales involved, following the launch of the new enterprise.
As well as providing a concise, yet comprehensive look at the basic structure of the business, including an overview of the franchise, the plan should set out short term objectives as well as longer term aims.
This will enable the lender to look at what you want to achieve and more importantly how you aim to do it. The plan should also provide financial information, outlining the capital investment that is required in order to launch the new business.
No business plan is set in stone; any forward looking strategic document should incorporate an element of flexibility, taking into account market knowledge, key trends, regional differentiators and the effect that outside influences could have on the business.
This flexibility will ensure a proactive approach to changing market conditions, both positive and negative.
Whilst there’s no guarantee of success, a well-structured business plan will undoubtedly provide the foundation for future growth.
Lloyds TSB Commercial has 50 trained franchise managers located throughout the UK, all of whom have experience of working with and providing guidance and support to those operating in the franchise industry.
