A business plan is your road map to how you want to run your business, even when it’s a franchise. Of course, the big difference with a franchise business plan is that the business’s model has already been proven to be successful. However, this doesn’t mean that this kind of business plan should be created with any less consideration than a non-franchise plan.
In fact, it may require more, as your plan will need to include information with regard to the franchise itself, as well as you as a franchise owner. You will also need to consider other matters, such as the neighbourhood you plan to run your franchise from.
Get the information for Your Plan
The franchise plan is a little different because you will need to first sign the franchise agreement before getting the required company information for your business plan. But once you’ve obtained the management structure of the franchise, costs, demographics and marketing plan, you’ll have what you need to build a solid foundation.
Not only that, but as the above information has already been proven to be successful, it is also likely to help reduce the investment risk of your business. But it’s important to remember that the information is given to you by your franchisor only covers a small portion of the picture your franchise business plan will paint.
What do you want your Business Plan to help you with?
Your franchise plan will either help you to raise the money you need to start your business or be used to help you manage it. You will need to decide which, because depending on your choice, your business plan will be different. For example, if you are looking to raise money, then your business plan will need to communicate to investors more information about how the management team works as well as existing potential ways to generate revenue. After all, if you are looking for people to invest in your franchise, you will need to demonstrate how you plan to attract enough customers to obtain sufficient ROI.
If Your Franchise is Location-Based
As many franchises are, yours will probably be based on geographical factors. Therefore, your business plan will effectively need to communicate what kind of local competition there is, as well as the market profile and demographics of the neighbourhood your franchise will be located. If your franchise is a retail shop, you may also have to go into detail about the kind of foot traffic that may exist outside it nearby.
Financials are still important
Your franchise business plan will still need to include financials like your goals as well as your projections for sales. Even though you would have already received plenty of information from the franchisor, you will still need to be able to explain how you plan to make the most of this proven market opportunity, including your plan for promotion and targeting your customers.
Adding a Local Flavour
Although it may not seem like it, the area your franchise will be located in will have its own unique personality due to its mix of residents. This is why understanding the neighbourhood is very important. A franchise that merely pops up and expects to sell without some kind of local connection can place itself at risk.
Regardless of whether or not a business plan was requested, having one is a terrific way to always have an overall picture of your business goals nearby. By revisiting your plan every few years to make modifications, your plan can become the lifelong blueprint for your business’s continued success.