Understanding a business plan
It is essential for any franchisee to draw up a business plan. This document outlines what your plans are with the franchise and how much money you will need in order to achieve these plans. You must also detail exactly how you propose to pay this money back.
The business plan also acts as an opportunity for you to really get your ideas down on paper and to clarify exactly what you want to achieve.
Your business plan needs to be really clear and divided into sections where possible:
• Begin your plan with an introduction describing your business.
• The next section should cover the product or service that you are offering. Describe the product or service that you are offering and ensure that you mention your Unique Selling Point (USP) and how it can be developed to match the changing market.
• The third section needs to outline the people involved in getting your franchise started. You should include a mini profile of each person involved and outline their strengths and weaknesses and what they can bring to the franchise.
• As well as this, you need to discuss the market and how your product or service will fit in with it among any competitors.
• You then need to define your marketing plan. Outline your objectives with regards to marketing and how you will go about it.
• The operation is the next thing to be discussed. You should outline how you will supply your products and services and how this will work within the franchisor’s agreed operation.