newsfocus
Recovery
position
If the economic
storm is starting to
clear, how can
franchisors
capitalise on these
changing times?
The Office for National Statistics until you have undertaken a small, In terms of money being lent by
recently reported a 0.5 per cent structured and focused research the banks, in its latest Access to
increase in industrial production programme to better understand your Finance Survey, the CBI reported that
between May and June this year. The ‘new’ target. businesses are finding it easier to
Chartered Institute for Purchasing and obtain new credit for the first time
Supply (CIPS) said the service sector is “However, that doesn’t mean this year, however overall, small to
experiencing its sharpest rise in almost businesses should wait until the medium-sized enterprises (SMEs)
a year and a half, and retail sales rose economy is in a more stable position. have seen a moderate decline in the
1.8 per cent in July, according to the There are people out there who availability of existing credit.
British Retail Consortium. are buying franchises and there are
people who are planning to buy in Head of franchising of Lloyds
If business is picking up, how can TSB Business Development,
franchisors best capitalise on this Richard Holden, commented:
potentially more positive and steadier “Understandably banks have been
path ahead?
null
Banks are looking
challenging lending propositions more
for a strong
null
thoroughly in the current economic
Graham Monk, partner in climate, but it is clear that there is still
SmartGrowth said: “The first
business plan
an appetite to lend to good quality
thing is to audit everything in the
that has been
lending applications.
communications plan. Where six or
12 months ago you knew or had a
well presented by
“The message about producing a
good idea about the type of people
the prospective null null
robust business plan is starting to be
that were attracted to your franchise heard and the consequence of better
– what their hopes and aspirations
franchisee.
plans will lead to more lending to
were, why they were interested in prospective franchisees in the coming
your franchise, who else they might months.
talk to, how you compared with the
competition, how the competition the future. Having a pipeline of short, “Banks are looking for a strong
promoted themselves – can you say medium and long-term prospects business plan that has been well
the same now? Very unlikely.” is the key to surviving this current presented by the prospective
situation and therefore, it’s not a case franchisee.
Many businesses will be emerging of just cutting costs but making sure
from a period of cutbacks. Although that the budget is prioritised and “Expect the business plan to be
the temptation to expand and take every penny spent counts. Perhaps challenged, therefore the borrower
action immediately may be strong, most importantly, and something needs to be able to confidently
esna Siljanovska some experts advise businesses to that need not be too costly, is answer any questions the bank
be cautious. Graham added: “In the putting together a proper customer manager may have about the
ds by: V
absence of hard and fast information relationship management programme operational and financial aspects of
or
W and intelligence, do nothing. That is to manage this.” the business plan.” n
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