Deciding when and how to grow your business can be a difficult decision. Often, what limits growth, is the need for additional capital. Two of the most common growth strategies are franchising or seeking outside funding via investors or lenders. If you decide to pursue either of these options you will find yourself in need of a formal, detailed business plan. Each option will require a specific type of business plan geared towards the appropriate audience.

Investors

If your plans for growth will require a large influx of cash, you will most likely appeal to potential investors or lenders. The primary difference between an investor business plan and a lender business plan will be the focus. Investors will want to see the growth potential under various scenarios as this will allow them to perceive their potential return on investment. Investors are also particularly concerned with the experience of the management team as this is indicative of the likelihood the business will grow rapidly and profitably. Further, you will likely need a pitch deck to accompany this type of business plan to get your business plan noticed and get a foot in the door.

Lenders

Contrary to investors who will want to see multiple growth scenarios, lenders will want to see expectations of financial stability. They will also be more concerned with personal financial history of the business owners and less concerned with the management team. The primary difference here is motive. While investors want to know they will receive a return on investment, lenders are looking to ensure a company will be able to make monthly payments on their loan or credit line.

It is important to note that regardless what type of potential funder you are appealing to, the basis of your financials should not change. The way you present the numbers and the portions of the business plan that are emphasized will be different but, the numbers themselves should remain the same.

Proven businesses that have been running successfully for at least a couple of years and turning a consistent profit, may want to consider franchising. Franchising is an exciting way to grow your business while sharing in the costs and work with your franchisees. Franchises are best suited for businesses with a replicable business concept. If you want to grow your business via franchising you will need to develop what’s known as the franchise masterplan.

You may also need to seek outside funding from investors or lenders to cover the cost of developing the franchise model. The costs to properly franchise can be steep and include consulting various experts to draft legal documents, create a marketing plan with assets, develop training programs, and working out the financial model. This is on top of the business plan needs which include drafting the franchise masterplan, a business plan that will be suitable to be adapted by franchisees, and a pitch deck to attract the interest of the potential franchisees.

Regardless your plan for growth, if it requires you to bring in external parties, you will want an expertly crafted business plan tailored to appeal to the appropriate audience. Knowing the specifics of what certain types of outside parties will look for and be most interested in is the benefit experienced, professional business plan writers like Smirnova Business Consulting can bring in. Further, if you are unsure of the most appropriate growth strategy, our consulting services will help you determine the best way to take your business to the next level.