A business plan is essential as it puts across your commitment and ability to carry out the business to the potential franchisor and the lenders. The potential franchisor will look out for the best franchisee which will be indicated by the business plan submitted by them. Making a business plan can be a cumbersome task but not only is it important for the franchisor; it is of greater importance for you- the franchisee. It will enable you to make an informed assessment of the business, the market, locations and competition etc.
Getting on track
So how should you go about formulating your business plan? What are the things that should be mentioned and which are the ones that are not required? Should you make it yourself or hire professionals? At first, you should make an effort to make the plan yourself and get the same reviewed from professionals but in case you don’t feel that you can do justice to the whole process, then you can hire business consultants and accountants. The whole idea is to be involved in the procedure because you are the owner and will be in charge of the business. This will also update you about the industry, help get a better understanding of the business aesthetics and get an insight of your role as a franchisee.
Essentials to be remembered
There are a lot of things that you should adhere to in order to suffice the franchisors requirements. These are:
- The best plan is not the one which is lengthy but the one which is precise and contains all the necessary information. All the key areas need to be addressed in the finest possible way.
- It is also very important to put across as to why you believe you will be successful in the business and have an edge over others.
- The audience for whom the plan is intended need to be addressed.
- A SWOT analysis is a must letting them know about your strengths, weaknesses, opportunities and threats.
- A market study highlighting the viability of the business in your location, competition, marketing plan etc. should also be included.
- The business plan cannot be complete without the mention of the financial aspect. The investment that you will be making, the availability of funds, anticipated profit and loss form the most important characteristic of the business plan.
So you must address these key areas to emerge as a prospective franchisee.
Wrap up
The best plan for you will be the one which would portray and reflect your mindset and judgement. Put your best foot forward and leave the rest to the franchisor to decide!
SAMPLE BUSINESS PLAN
Table of contents
1. Executive précis
- Why are you a suitable partner
2. Financial scrutiny
- Total Investment
- Probable cash flow
- Anticipated profit and loss
3. SWOT Analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
4. Market Study
- Location
- Competition
- Local marketing plan
