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The Investment

Successful franchising has a very particular set of disciplines, which need to be included in any of your business plans. Some of the requirements result from personal application and hard work, but some of them are encompassed in prudent business planning. The good news is our experience enables us to provide the ideal model tailored to meet your particular circumstances.

Key factors included within this business plan are;

• Investment
• Borrowing
• Cash Flow
• Overheads
• Profits

You might say that these are included in every business plan whichever market you decide to trade in and you would be correct. The difference with Belvoir is that we will assist you with every one of these requirements and in most cases either introduce you to the relevant sources or advise you on the most prudent course of action.

Investment

There is an initial investment requirement to start a sustainable Belvoir franchise. The amount will vary to some degree depending on the area you choose to operate and the ownership of the premises you operate from. However we currently estimate a requirement of around £150,000. Once we have jointly established the true capital requirement we can then discuss how this capital is raised and deployed. Whatever that amount may be, you will need access to 30% of that amount as direct cash from your own resources, the balance you can raise from our selection of financial partners, who will most likely be one of the High Street Clearing Banks.

Borrowing

We have developed strong relationships with the banks we work with and a number of other substantial finance sources. This assures that an introduction from Belvoir will meet with a very positive response, given that the franchise proposition can satisfy their basic criteria. Our brand instils a high level of confidence with our financial partners and it means that the lenders generally have a low risk perception of new Belvoir franchisees. We will work with you to prepare what we believe is a viable business plan. Using this document and their knowledge of the Belvoir business model and their own financial considerations, the lender will make an informed decision.

Cash Flow

Within the business planning process we will prepare a typical cash flow projection, based upon the experience we have had with previous successful franchisees. This projection will help to guide you through the cash management process needed to assure your sustainable business growth. Using these valuable tools will promote a sustainable business growth curve.

Overheads

Belvoir has established strong links with the supply chain necessary to facilitate a successful sales and lettings business. In doing so we have negotiated deals with the various service and software providers necessary, so you have the advantages of a vigorously negotiated cost model.

 

Profits

The first milestone once the finance is in place and the business has started trading is the break-even point which on average happens within 12-18 months. Once this is achieved every additional source of income is building profit.

The next major milestone is the five year point. At this stage the bank loan is fully repaid and not only should you have a completely debt free business, but you just received a monthly profit bonus equal to the amount of the repayments to the bank.

After this stage you could be earning a substantial income and building a business which has a capital value of around 1.2 times it’s turnover. So if you turn over £500,000 per annum your business is worth around £600,000. That means that when you sell your business, your initial investment has not only given you a monthly return right from day one, but has also given you a very nice cash amount as a farewell present.

Not all investments produce such rewards in terms of both long term income and a lump sum.

Growing Through Acquisition

A further opportunity to grow your Belvoir franchise is with the Belvoir Assisted Acquisitions Programme. When instructed by you, this programme searches for potential businesses that may want to sell within your franchise territory. We ensure that the opportunity matches the criteria agreed with you so that the acquisition fits with the size and nature of your growth plans. We can also help to fund that acquisition and provide support to negotiate the deal and get it through to completion. This is a great example of how being part of a franchise can bring significant benefits and increase your businesses potential.

Contact us for more information