The Franchise Business Plan (Pt II)

Date AddedNovember 26, 2009 06:53:52 AM

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Continued from The Franchise Business Plan (Pt I)

The more thorough a business plan, the greater its ability to guide a franchisee through the difficult stages of their business life. When developing a business plan, it is vital for franchise owners to consider all aspects of their business and carefully forecast the operational requirements, financial turnover and marketing tactics. Whilst it can often be difficult to pin-point the finite details of your business, the more planning a franchisee undertakes the more successful the business is likely to be.

WHEN YOU ARE SETTING YOUR BUSINESS GOALS, MAKE THEM CLEAR, MEASURABLE AND TIME SPECIFIC. ASK YOURSELF:

· What am I selling?

· Who will benefit from my service?

· What makes my business different?

· What returns do I want?

· Where do I want to be in six months/ one year/ten years?

Imagine your ideal business set-up and what it involves. While you might not be able to start with 100 plus staff and state-of-the-art offices, you can most certainly plan your way by setting goals that will get you there.

Franchisees should also consider their potential market and any likely competitors. All too often franchise owners enter the market with little knowledge of the business environment and what it will take to succeed. In these circumstances, approaching a local professional, such as a NAB Business Banker with an understanding of the business environment, can be truly beneficial.

WHAT SHOULD A BUSINESS PLAN LOOK LIKE?

The basic layout for a business plan typically follows a structure that covers:

· Executive summary

· Your business goals (short, medium and long-term)

· Your management plan

· A SWOT (Strengths Weaknesses Opportunities Threats) Analysis - your market and competitors;

· Your marketing plan

· Your operational plan

· Your financial plan

· Action plan.

Fanchisees often have to work within certain structures and frameworks as set out by the franchisor. This is why it is important to seek the advice of a professional when it comes to developing a business plan for a franchise. This will ensure accuracy and make sure that all the requirements of being a franchisee are met.

The ability to change and adapt with the times sets the truly successful businesses apart from the crowd. For franchises, regularly reviewing and updating their business plan is the key.

All business plans should be consistently reviewed and updated, however now is a vital time for all franchises to reassess their business strategies and implement new plans. With economic conditions tightening and consumer confidence on a steady decent, no franchise can afford to apply the same business tactics as nine months ago. Updating your business plan to account for the changing fiscal and consumer environment is as important as creating a business plan in the first place.

In the current environment, it is becoming increasingly important for franchises to reassess their financial position and realise the constraints currently being enforced on their business. Over-confidence is a deadly business sin, and it is important for franchises not to attempt to grow too quickly in a slowing market. With this in mind, both franchisors and franchisees need to communicate effectively to develop a concise and relevant business plan, which reflects how your goals can best be achieved in the current climate.

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