How many business dreams have been dashed because start-up costs seemed prohibitive? Don’t let your lack of capital quash your dreams of franchising in Canada: sit down with a lender, wow them with your business plan, and chase your dreams!
The FranNet team has been helping prospective business owners finance their franchise dreams for years. In today’s post, we outline four tips to help you build a business plan and win over your lenders during your next financing meeting.
1. Start with a franchise assessment.
The first thing you’ll need to do is research, assess and summarize the franchise you intend to purchase. At this stage, it’s also prudent to start laying out your goals and visions for the future.
For your personal franchise assessment – the one you’ll use to assess the best opportunity for you – gather information about the franchisor, including their background, track record, reputation with other franchisees, and the quality of any products or services associated with them. This can be more difficult than you’d imagine, as some franchisors go to great lengths to limit their digital presence to a polished presentation of the facts they want you to see. As is often the case, networking is your best DIY resource in this regard, allowing you to bypass the marketing copy and get right down to brass tacks. Alternately, you can work with an impartial franchise adviser from the FranNet team to develop your franchise assessment.
For your business plan’s assessment, you should have much less trouble finding compelling and high-value talking points to use to convince your lender. As we mentioned above, it is in your franchisor’s best interest to invest a lot of effort in presenting a polished digital presence. Finding selling points should be relatively simple. If you have any questions or would like an unbiased opinion on the finished assessment, contact a FranNet consultant!
2. Analyze your competitors.
When you’re trying to wow a publisher with an enquiry about a book you’ve written, you’ll almost always be asked to provide an analysis of relevant competitors in your “sphere.” Why? Because it’s a great way to get a prospective author to summarize what makes their offering special, as well as explain why their book will sell.
When trying to work withyour lenders, consider taking the same approach with your business plan. Elaborate on what makes your particular franchise’s products and services special. Why is your franchise unique, marketable and profitable in comparison to competitors within your sector?
This kind of research is possible on your own, but best done with the support of experienced franchise advisers who have been around the industry long enough to know the general market hierarchy.
3. Be precise about the amount of money you require — and its purpose.
Broad estimates will not serve you in a lender meeting. Lenders want to know exactly how much money they have to put on the line, and exactly where it’s going. The more detailed of a breakdown you can give your lender in this regard, the higher your chances of successfully securing a loan.
4. Come prepared with a repayment plan.
One of the most important factors in the success of your loan is whether the lenders feel you’re likely to pay them back. Explain exactly what percentage of your income will be set aside for repayment purposes.
Financing can be a confusing and potentially overwhelming part of your business plan, but it’s also a very necessary part of your plan. Don’t let fear push you away from this this important process. You can learn more about financing your franchise at http://frannet.ca/buy-a-franchise/financing-your-franchise-business-in-canada/.
About FranNet Canada
FranNet is a 29-year-old company with roots in the U.S. Its purpose being to nurture every entrepreneur’s dream of business ownership. We actively employ a specific profiling and consultation method. This method is geared to each investor with a specific business model and based on franchise trends typically found in Toronto, Ontario, Vancouver, British Columbia, or Calgary, Alberta. The most lucrative Canadian franchise opportunities are waiting for you. For more details visit – http://frannet.ca/buy-a-franchise/canada-franchise-buying-process/