Updated: Aug 30, 2022
As with any new business, creating a business plan for your franchise is an important step in sales. This plan shows the purpose of your new business and helps you to think and prepare for emerging challenges. Most lenders need to show you a business plan if you want to secure funding for your new franchise.
The good news is that the franchisor has already done a lot for you and made plans to start a business from scratch. Through the Consolidated Statement (FDD) you can get as much financial information as you need. There are several models for creating a business plan, but the best six are:
1. Executive Summary
The goals and objectives of your business should be stated in the Business Plan Management section. Start with a brief description of your product or service and set your goals. How to fill the marketplace gap? What are your development probabilities? Describe how your business will be successful and achieve its goals based on market and competition.
2. Company Information
Another part of your business plan is the details of the franchise business. Part 1 of the FDD provides an overview and history of voting rights. This section is intended to provide a general description of the products and/or services offered, an overview of the market and competition, a description of the activities performed to deliver the products to the customer, and an overview of risks and challenges.
3. Management Summary
Another part of your business plan should include a list of key members of your management team who are an integral part of your day-to-day operations. The franchise focuses on the most important aspects of the business, including as much information and data as possible for each individual.
4. Sales and marketing
In the case of a franchise, sales and marketing plans are largely determined by the franchise. To attract new customers, you should research their processes and include a description of the marketing and helpful advertising offered by the franchise. How do they find the word for your new place? What is the current broadcast? Talk to your franchise about the many opportunities that exist for individual franchisees in the local market and advertising, and include a plan to show customers how your business is doing.
Article 19 of the FDD provides for financial statements of specific companies and dividends of franchisees, but profits may vary for each segment. There are many variables for seeking profit for a particular situation, including charting, selling, and managing. Ask the franchisee to help you and talk to other franchisees under a similar unit. Remember that it is better to make mistakes when doing financial research.
6. Financial requirements
Your financial plan should have three main components: profit and loss statement (P&L), balance sheet, and cash statement. In FDD you will find a lot of information needed for this section, including items 5-7 which describe the initial costs and cost estimates. It is important to review all current fees and expenses that may be incurred by the franchisor for any other expenses incurred during the first year of operation. How much does your website sell? How long have you been fulfilling your responsibilities? All of this information needs to be analyzed and integrated into a business plan in order to get the capital needed to run a successful business.
There is no set procedure for preparing your personal business plan, but these basic elements are important. Remember that your business plan is a sales document and you need to show how and why your business is successful.