The Franchise Business Plan (Pt I)

Date AddedNovember 26, 2009 06:44:19 AM

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Business planning is truly the cornerstone of success, however too many franchisees fail to implement effective business plans which reflect their personal franchising goals. Developing a thorough business plan can not only help your business avoid the pitfalls presented by the flattening economy, but can effectively position your franchise for future growth.

You may be thinking, "My business has done well without one... why start now". The answer is simple: you can't rely on external market conditions for your growth. If you don't have a business plan now - you may not need one next year.

All businesses that have endured the test of time are linked by one common factor - a good business plan. Before a franchisee even attempts to serve their first customer, it is essential that a clear and thorough plan be documented. A business plan represents a blue print for success, and it is a tool which businesses can refer back to, both in times of expansion and economic hardship.

Unfortunately, many franchisees are walking the business path without an appropriate map, believing that they are safe due to the fact that they are part of a larger franchise structure.

However, this reliance is largely misguided, and franchisees should begin to view their investment as a business in its own right. Each particular franchise is affected by differing economic variables, and it is vital that these are planned for in an individual, localised business plan. To succeed in the local market, a franchisee needs to consider:

· Local customer demographics

· Local seasonal fluctuations

· Your location/exposure

· Competitors

· Suppliers/access to business equipment/infrastructure

· Local business organisations/networks.

Without a business plan, franchisees are walking blindly in an environment of economic uncertainty and tightening consumer spending. The current economic environment offers great challenges to any businessperson looking to grow or consolidate their business, and franchisees should take all of the necessary steps to help ensure success. Seeking the advice of financial experts when developing plans and strategies for business longevity has never been more important, and franchisees should be careful to select advisors who specialise in the franchising sector.

The most important thing is to plan now. Your business plan should not be an afterthought when the going gets a little tough. Planning ahead will help you through the tough times, so take note of what is in a good business plan so you can avoid the pitfalls of an unplanned business.

Continued... The Franchise Business Plan (Pt II)