If you are seeking new franchise opportunities for the first time or even as a recurring franchisee, you need to know that a business plan is not only very helpful but in most cases, will be required of you. You need to know not only how to create one, but how to do so following the correct format.
If you purchase a franchise, your franchiser will often help you with your business plan. This is yet another benefit to investing in a franchise opportunity. However, if they do not help you with your business plan or if you want to edit it or create your own, you will need to know how to do this properly. There are also some parts of the business plan that will require information you can only obtain from the franchiser.
A business plan is also very helpful for your personal uses to help you get things in order to operate the business more successfully. The main difference between a franchise business plan and a traditional business plan is that in your franchise business plan you will be required to list information about both the franchisee and the franchiser. This is another reason why they franchisor often helps franchisees with the business plan.
Below are the components that you will want to have in your franchise business plan:
• An abstract- this part of your franchise business plan is shorter than an executive summary. It is basically the “prologue” to your business plan.
• Summary- Next will come your business summary where you will add the company description and related information about the business.
• Franchise overview- This is where you discuss the franchise. This section replaces the industry analysis of a traditional business plan.
• The market- In this section you discuss the current market and the competition your franchise will face.
• Marketing plan- Cover your marketing and advertising strategies here in this section.
• Management qualifications- What will be required of your staff and management?
• Financial- In this section you discuss your financial plan and projects just as you would in a traditional business plan.
• Exhibits- Here you put all of your supporting documents of the business plan.
When you follow the proper format for your franchise business plan, you will be taken more seriously and you will be more successful with your endeavor.