Now that you have decided owning a franchise is what’s best for you and already have your heart set on an automotive franchises opportunity in Montana, the next thing you may want to consider is funding.
If you are one of those that have enough money to cover the initial and subsequent cost of owning a franchise, congratulations to you. If not, you may want to consider other available funding sources.
Before going to a financial institution for a loan, you must be ready to prove that the business you intend to start is a viable one and you can make it work. Thus, you must have drawn a business plan that the institution can use to assess the viability of the business.
The Importance of a Business Plan
Although a good business plan is important if you want to have a loan granted to you, it serves other purposes. A perfectly drawn business plan puts into focus what your main aims and objectives are in running a business. It helps you state clearly the milestones you hope to achieve after specified periods of time. Basically, it is like your own personal map to success that realigns you to your goals whenever you are going astray. It also reassures you that things even though they are thorny at the moment, will get rosy in due time.
A good business plan shouldn’t be static. It should be dynamic enough to meet the changes that you might be experiencing as your business attains greater heights.
The Ingredients of a Good Business Plan
It isn’t until you exhaust several A4 pages drawing charts, plotting graphs, and constructing tables that you’d be certain you have a business plan. In fact, for lending purposes, its best you keep your business plan as concise as possible because most lenders do not have the time for a lengthy read.
However concise though, be sure to carefully include all aspects of the franchise that you are buying. Anticipate challenges that you might face in the business and clearly define ways you plan to overcome them. Doing these would build their confidence in you as a shrewd business person and thus make them favorably consider you for the loan.
To strengthen the lenders’ faith in you, you should provide precise information about your franchisor’s corporate background and their business history. If your franchisor’s brand has a strong recognition on the market, then the lenders might be more inclined to grant you the loan.
Some franchisors would even help in the preparation of the business plan. Basically, a business plan should entail the following amongst other things;
- Your company’s description
- The prospective services you’d be rendering
- A comprehensive market analysis
- Your marketing and advertising plan
- Full disclosure of your financial situation
- An estimation of when the lenders can expect full repayment of the loan you intend to get.
With cars being ubiquitous, it is never a bad idea to grab hold of an automotive franchises opportunity in Montana. You just have to know the right things to do to bring your ideas to fruition, and having a good business plan is one of those things.