A franchise business plan is a document that outlines the key components of your business. It is a road map that will help you navigate the early stages of your franchise journey. The goal of your business plan is to articulate your business model and how you plan to achieve success.
Your business plan should include:
1. Executive Summary
The executive summary is a brief overview of your franchise business plan. It should include what your mission statement is for your business, what services and products you offer, an overview of the markets you are trying to target, and your sales and marketing strategy. The executive summary should be no more than two pages long.
2. Company Description
The company description section of your franchise business plan should provide an overview of the history of your company, who the business owners are and the structure, and legal status. This section should also include a description of your products or services, as well as your company’s competitive advantage.
3. Market Analysis
The market analysis section of your business plan should provide an overall look at the industry in which you will be operating, as well as the size and growth potential of your target market. This section should also include an analysis of the trends affecting your industry and how those trends will impact your business.
Opening a franchise can be a great way to start your own business. Here are three of the most important trends to keep in mind.
1. Increasing regulation of the franchising industry
2. The rise of digital marketing
3. The growth of the “sharing economy”
4. Competitive Analysis
The competitive analysis section of your franchise business plan should provide an overview of the other businesses that you will be competing against in the marketplace.
5. Sales and Marketing Strategy
The sales and marketing strategy section of your franchise business plan should provide an overview of how you plan to generate leads and convert those leads into sales. This section should also include a description of your pricing strategy, promotional strategy, and sales channels/distribution channels.
6. Management and Operations
The management and operations section of your franchise business plan should provide an overview of how you will manage and operate your business. This section should include a description of your organizational structure, management team, and operational procedures.
If you’re not going to be running the day-to-day operations of the business yourself, then you need to put together a management team who will. You should include biographies of each member of the management team along with details of their relevant experience. If any members of the management team are going to be coming from outside the organization, then you should explain why they were hired and what valuable skills and experience they bring to the table.
7. Financial Plan and Projections
A financial plan and projections are an important part of any business plan. This section should include a detailed breakdown of your projected expenses and revenue, as well as a timeline for reaching profitability. The goal of your financial plan is to ensure that your business is sustainable in the long term.
8. Minimum Viable Product
When starting any new business—franchise or otherwise—it’s important that you have a clear idea of what your minimum viable product is. In other words, what is the bare minimum that you need to get up and running? This could be things like premises, equipment, inventory, signage, uniforms, etc. For a franchisor, it could also include things like developing the Operations Manual and creating initial training programs.
A business plan is an important tool for entrepreneurs who are looking to start a franchise. It outlines the executive summary, market analysis, description of the business model, sales & marketing strategy, and franchisor agreement. It’s important to have a solid business plan before pursuing franchising as it will help you secure financing and give you a roadmap to follow.