An important part of ensuring your success with a new franchise is developing an effective business plan. Having a well-written and well-researched business plan can not only help you get financing for your fledgling business, but it can also help you stay on target as you move ahead. Your franchise business plan should contain the following five items:
A mission statement and a description of what your business does
One of the first things you should put in your business plan is an in-depth description of exactly what you plan to do, including the types of products or services you hope to sell. Additionally, you should discuss your target market, provide an analysis of your strongest competitors and identify any challenges that you will need to overcome on your journey to success. Overall, this section should summarize the mission of your franchise as well as outlining your company values and your commitment to customer service.
Management structure and company organization
How do you plan to operate your franchise? Within this segment of your business plan, you should outline the management and organizational structure of your franchise. Depending on how your franchise is structured, you may have managers at both the regional and store level. Each managerial position should be described in depth, along with a description of the type of person who would be ideal for the job.
If you want to get people through the door of your new franchise, you need a solid marketing plan. Within this segment of your plan, you should discuss how you plan to market your business, including a breakdown of the target market you are hoping to reach, which advertising mediums you plan to use and how you plan to build your company’s image. In this part of your plan, it is also important to identify traits or services that help you stand out from your competition.
Planning for your company’s financial future is an essential part of developing your business plan. Within this section of the plan, you should discuss your anticipated expenses, determine how much money you will need to get up and running and decide how much money you will have to make to be profitable. This is also the ideal place to develop your pricing plan and to determine where your initial funding will come from.
Finding Investors or Financing
Getting a franchise up and running takes a lot of money. Within this part of your plan, you should talk about which expenses need to be covered in order to get your business off the ground. Additionally, you should outline any funding sources that are already in place for your business. Next, you should calculate how much additional funding you need and determine how you are going to get it. If your financial plan relies on taking out loans, you also need to clearly outline how you plan on paying them back. Be sure not to rely solely on income from your business for repaying the loans since this can fluctuate greatly during the first year or two of business.
These are just a few of the key topics that should be included in your business plan. There are other sections that need to be addressed as well. The best way to know whether or not you are on track is to meet with a business adviser or to read samples of business plans to make sure yours looks the way it should.