Planning
Your Franchise Business Plan
The world of franchising bestows an unprecedented number of advantages to
the individual. Whether you intend to expand your small business with a
franchise network, or whether you are merely intrigued by the notion of
becoming part of an already established franchise system, the success and
growth possibilities are endless.
However, in order
to achieve this success and growth (as the franchisee or the franchisor),
the created business plan must reflect components relating to both the
franchisee and the franchisor. While this can be slightly tricky, it remains
as one of the most essential facets of creating a triumphant franchise.
Since a franchise business plan differs from a conventional start-up business
plan in the manner of combining the ingredients of franchisee and franchisor,
most are at a loss when it comes to its creation. Seeking the assistance
of a qualified legal professional or a franchise consultant is suggested
(check out Franchise Opportunities’ Consulting/Law section for some
capable recommendations), and when you are crafting such a business plan,
be sure to keep these eight basic sections in mind.
*
Abstract:
The abstract in your
franchise business plan is significantly briefer than a typical executive
summary. When drafting this section, remember that it should resemble,
both in length and purpose, a prologue.
*
Business Summary:
This summary retrieves
the omitted subjects of a conventional executive summary and then combines
them with elements of the traditional company description. So you see,
within these two initial facets of your business plan, although nothing
is left out (compared to a traditional business plan), things are rearranged.
*
Franchise Overview:
The “Franchise
Overview” replaces the typical industry analysis.
*
The Market:
The treatments of
the market and the competition as well, combine here to form the market
section.
*
Marketing Plan:
Marketing and sales
strategies are conventionally included together within the “marketing
plan.” Marketing plays a somewhat larger role when pertaining to
a franchise, since customer recognition and brand name acknowledgement
are pivotal in the success of a franchise.
*
Management Qualifications:
This section is essentially
the same as in customary business plans, as it depicts and illustrates
your proposed management staff and your operational framework.
*
Financial Pro Formas:
This too is a traditional
section. Its intent is to group together your financial projections for
the first year, as well as an inclusion of your projections for the future,
typically for a range of three to five years.
* Exhibits:
This is the final
section of your franchise business plan. It is here that you place supporting
documents needed to evaluate the plan itself – either in the capacity
of supporting information in the prior sections or to provide supplemental
information not covered. If you have lots of exhibits, consider weaving
them into the sections where they apply.
|
