152 Lloyds industry DR 2/3/07 10:03 am Page 1
RICHARD HOLDEN
franchising & finance
Strategic planning
Used in the right way, a business plan is an essential tool for monitoring performance
and for the early identification of weaknesses and under-performance. Richard
Holden, Head of Franchising at Lloyds TSB, discusses the ‘Business Plan’
understanding of the key financial
L
ife can be very chaotic when to seek professional advice when you
you are setting up a new are drafting it. There is plenty of
information for their own business.
business, particularly if it is support available from banks,
Consequently they are unable to
your first venture. It’s easy to get accountants and Business Link to help
establish their own creditability and
bogged down in the many tasks that you. When you open an account, your
project confidence in their business.
need your immediate attention, but bank will want to see a plan, whether or
It is always a good idea to send a
long term strategic planning is vital too, not you are asking for substantial
copy of the business plan to the lender
to ensure your business remains on financial help. It should include
in advance of the scheduled meeting, as
track and achieves your objectives. background information about the
it speeds up the process of assessing the
The most effective way to business, its management, operation,
finance. If you are looking to raise a
crystallize your business objectives and finances and marketing. Give some
large sum of money from the lender
provide a sense of direction is through consideration to the length of the plan -
then it would assist if two copies of the
a business plan. By preparing a if it is too short you’ll miss key
business plan were made available, in
business plan not only are you information, and if it’s too long it will
case sanction needs to be referred to the
clarifying your business ideas and lose its impact.
bank’s lending department, who would
aims, but it can also help you secure Remember that your business plan
also wish to review a copy of the
financial investment for your project. is your sales pitch. If you’re trying to
business plan.
Used in the right way, a business secure a financial commitment to your
A well presented, carefully
plan is an essential tool for monitoring business you need to show a lender or
researched business plan will clarify
performance against benchmarks investor that there is a good market for
your own thoughts about the business
and for the early your product or service and you have
venture and serve as an important tool
identification of the ability to manage the firm. A lender
to monitor the ongoing performance of
weaknesses and under- wants you to demonstrate a sound
your business.
performance. Crucially, understanding of your chosen market
no business plan and the ability to manage the financial
For further information on business
should be set commitment you are taking on, as well
planning for your franchised business
in stone and the potential to make a decent living
call the Lloyds TSB Franchise Unit on
should be from the business.
0117 943 3089
regularly Presentation of the plan should not
To read more advice from other
reviewed as be neglected, so you should consider
franchising professionals visit
the business how you are going to create the right
www.thefranchisemagazine.net
develops. impact and then practice your delivery
The business before your meeting. Think of those
Richard heads up the Lloyds TSB franchise
plan is too business people on BBC’s Dragons’
team and is a regular contributor to trade
publications and national press. He is on
important to be Den. From the outset many don’t
the panel of judges for the Franchise
left to stand a chance of securing the
Marketing Awards and regularly speaks at
someone else investment they are seeking because
franchise seminars and exhibitions. Lloyds
to write, but their presentation is poorly conceived
TSB are affiliate members of the British
you may need or they don’t have a good Franchise Association.
152 © 2007 The Franchise Magazine
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