Purchasing a franchise can offer some amazing opportunities to succeed in the world of business. If you have been trying to get your own business off the ground, you may be running into some common hurdles. When you open a franchise, however, many of these hurdles aren’t there. For instance, the brand recognition is already there and some franchises offer built in marketing and advertising. However, before you start a franchise, you will need a franchise business plan. Without it, you won’t be able to get a loan and you won’t have a road map for the development of your business. Here is how to draft a business plan for a franchise.
- You want to nail down an excellent introduction that understands the nature of the franchise you want to purchase. The first thing you need to do when you create a business plan is to write an excellent introduction. If you are looking to purchase a Sweet Arleen’s Franchise, you will need to have a brief summation of the business, it’s competitors, and an annual profit projection.
- Create a list of all your staffing needs – particularly your management requirements. In your business plan, you will also need to have a break down of all your staff. Giving a lender, or an investor, an idea of your staffing needs will help give an idea of how expensive it will be to staff your business. You will need management, but you may also need other key staff members to keep your franchise running.
- Develop a budget and cost breakdown for everything – this will basically give the lender or investor an idea of how much you need. Of course, your franchise business plan will have a cost break down for everything. Ideally, you want to have an itemized list for everything – from the cost of installing menu boards to the cost of striping your parking lot. You don’t want to leave anything out, because the final number will be the amount you need to open your franchise.
- Create a profit projection report – it should include a short term and long term profit and loss projection. Having a short term and long term profit and loss report will be important, because it will give a picture of how profitable your business will be – and when. If you are dealing with an investor group, they will want to know when they can make a return on their investment. In some cases, it may take up to a year to start making a steady profit.
- Have a back up plan and a report on how you will help fund your business when the market takes a downturn. In your business plan, you will also need to include a breakdown of how you will turn things around if the market takes a plunge. Having this backup report will make you look much more prepared. Of course, this report will describe a rare emergency, but you want to include it nonetheless. In the end, having a totally detailed plan will benefit you and your franchise, so you don’t want to skimp.