It can be very profitable to launch a franchise, however you need to develop a solid business plan prior to getting started. Having a good business plan can help you attract the best investors and stay on track while you are launching and developing your franchise. Your franchise business plan should have the following five elements present in it.
1. Description of your business and its mission
Start off your business plan with explaining in detail what the purpose of your business is and that types of services or products you are planning to offer. Also discuss the market you’re interested in entering, who your competitors are, and any unique challenges that this segment of the market poses. This part of your business plan should also include the kind of experience you will be providing to your audience, your mission, and the values that are important to you.
Management and organization
How are you planning on running your franchise? In this part of your business plan address how things will be organized and how you will be managing your franchise. There are often several managers who are in charge of various levels of a franchise, including regions and stores. In this section descriptions should be provided of these various management positions in addition to the ideal manager’s profile or actual resumes if you have found employees already.
The key element to successfully launching a franchise is marketing. Analyze the various marketing channels you will be using in this part of your business plan. Provide some information on the purpose and tone that your marketing campaigns will take and describe the type of image you would like your marketing campaigns to create. This section also also discuss what sets you apart from the competition and detail strategies you will be using for attracting and retaining customers.
When it comes to your franchise business plan this is among the most critical parts. In this section, all of your expected expenses should be listed, including whatever initial investments that will need to be made in order to launch your franchise in addition to estimated recurring monthly expenses. To explain how your franchise will be fund, get a pricing structure created.
You need to have access to come capital in order to launch a franchise. In this section make a list of everything that still needs to be invested in or purchased. Go over various funding sources you have secured already and are considering. Discuss how much funding is still needed and explain where the money will be going and how it is going to used for growing your franchise and generating a profit. If you are planning on borrowing money in order to get your franchise launched, then you will need to have a detailed plan for generating a sufficient amount of profits in order to make timely loan payments in addition to having backup strategies in the event that your sales numbers are less than what you can planned on.
There are numerous other sections that can be includes are part of your franchise plan. However, we have definitely covered the ones that are most important. Speak with other franchise owners or search for sample business plans in order to have a better idea on how a good business plan can be created for your franchise.