Franchising Trends for 2017...
We are well into 2017 and for the UK it’s been a very uncertain and temperamental year. This is mainly due to Politics...
Writing a franchise business plan is an essential part of becoming a successful franchisee because it is the step that evolves your business idea, into a realistic, actionable plan on how you can achieve your desired success.
As a franchisee, it is your responsibility to create and develop your business plan as it is your working plan as to how you will make the franchise a success. You can ask for help, however remember that ultimately this is what you are agreeing to, so ensure it always works for you as you will be accountable for it.
The nature of the business plan is to establish whether the franchise opportunity will be a success; for this reason, it means it is also a due diligence step in determining if this franchise opportunity is right for you. When writing the business plan, it is acceptable to ask the franchisor to be an advisor in the process but they have legal liabilities associated with making claims for project earnings, so be sure to use them solely as an advisor. It is also important to note, that if a franchisor is writing or is overly involved in the process, then it begs the questions “is it your business plan and have you really done your due diligence on the opportunity?”
Business plans can vary in what they include, but below we have covered common elements found in a business plan.
The business description needs to be an overview of your selected franchise business, the sector and your goals/ambitions for the franchise. It should also include your mission statement and what it is that is going to make you a success e.g. your edge in the market. In this section, you should also include the legal description.
You can ask your franchisor for this information as it’s the details of the company such as, management structure, debts, growth, etc.
The industry analysis is where you can use your research of the industry to present the argument for why you think this industry has a lot of opportunity. It can involve:
This differs to the industry analysis as it’s your specific market which you will operate in. This should look into your territory, the competitors you will be facing, any local influencers, trends or data that can impact your business.
This is the day-to-day operational needs, such as how many employees you will need, what their roles are, how they are to be trained, the resources you will need and how and where you will source supplies.
This will be how you plan to market and advertise your franchise opportunity. It essentially presents what marketing activity you plan to undertake and why you think this will be a success. It could include special promotions, potential customers and public relation opportunities.
Every franchise opportunity has risks and to not acknowledge them you increase the risk of them occurring and not having a plan to combat them. You will use this area to identify any of these risks and you should be as truthful as possible, so show your detailed research of the situation.
This is how you intend to purchase the franchise and your projection of income, expenditure and any foreseen dips in the forecast. It should include:
If you would like any further advice or examples of business plans the Gov website has some helpful advice.