After giving this some in-depth thought, you may have decided that you want to open up a franchise. One of the essential steps to take on when making your first steps towards becoming a franchise owner is creating your franchise business plan. It’s true that in buying a franchise, you will be buying into a proven business model, but this does not exclude you from creating your very own plan. If you want to know how to create a franchise business plan, we’re going to walk you through the steps.
Before jumping into specifics, it’s important to introduce a brief industry overview and information on your franchise history. A mention of the products that you will sell and any financial support that will be needed are also good points to include in your introduction.
In your franchise overview, you will break down all the specifics of your endeavor. This is where you will adequately cover the type of franchise you wish to become involved in, the products or services sold, and the franchise history. The business model and legal structure of the franchise are also essential talking points.
This section of your franchise business plan will introduce all of the different market advantages available to your franchise. What are the annual sales for other franchises in a similar location? What size is your target market? Are there any upturning trends in the industry at the moment? What about the longevity of the franchise business? It’s important to paint a picture of what can be expected in the years to come.
Create A Marketing Strategy
Every business plan, even one done for a franchise, needs a solid marketing plan. Though you will have assistance with marketing materials and campaigns with the franchises parent company, it’s still essential to set up your own plan focusing on your local environs. What promo’s will you see throughout the year? How often will you be utilizing social media? How much of your yearly budget will you be putting towards marketing? All of these questions should be clearly addressed.
Having an accurate financial overview of the franchise business is crucial. Understandably, being sure that you are giving the most realistic numbers possible can seem nerve-wracking, but here is when the parent company becomes of immense help in the franchise creation process. You can reach out to the franchisor for financial overviews of other franchise locations with similar markets. Clear, realistic numbers will help to secure franchise financing.
Having a thorough and well-organized business plan will ensure that you have serious consideration when searching for investors for your franchise opportunity. And your business plan will do much more than help you land the finances needed to move forward with opening your franchise business. Along the way, you’ll obtain reliable and insightful information to help guide you along the way.