Q: Can you advise me how to set up a franchise business? Y.K. Raja, Visual Security International Ltd.

A: It will be necessary for you to prepare manuals fully detailing the day to day running of the business.

The manual is an important document and should be "live", with updates to the manual being necessary from time to time.

At the same time as you are developing these manuals, you should turn your thoughts towards the production of a sales prospectus which should basically set out some history, background and future strategy regarding the development of the franchise concept.

The sales prospectus should be seen as a "taster" for prospective franchisees.

Finally, we come to the preparation of the Franchise Agreement.

This is a most important document as it sets out the obligations of both the franchisor and, more importantly from your point of view, the obligations of the franchisee.

The Agreement must be enforceable at law. We cannot stress enough the benefit, indeed necessity, of having a quality Franchise Agreement.

We would strongly recommend that you utilise the services of a solicitor experienced in the preparation of such Agreements.

Q: What are my options for obtaining finance to start a new business? I have some money and lots of industry experience, but have no assets and no knowledge of self-employment? Hopeful, Bolton.

A: There are a number of issues to consider when seeking to raise finance for a business start-up, but two of the most important ones are determining how much you need to adequately capitalise your business and, how much you can invest yourself to match any external borrowing.

It is important to remember that if you do not invest enough at the start this might restrict the longer term growth and development of your business.

The most common source of finance for small businesses are the high street banks, who will take a view of the risk associated with the industry you propose to enter. If the banks are unable to provide all the finance you require BBV -- Bolton Business Ventures -- offer a range of loan funds to businesses in North Manchester and can assist in preparing a business plan. Contact Mike Parker, loan funds manager, on 01204 391400.

You can e-mail questions for the RBS panel -- please keep them short and to the point -- to Kathryn Lawton at the Royal Bank of Scotland in Bolton at: kathryn.lawton@rbs.co.uk Please indicate whether you wish your name and address to be published.