When it’s time to secure funding to purchase a franchise, you’ll need to have a solid business plan to show investors or lenders. However, even if you’re personally putting up all of the cash to invest in a franchise opportunity, you should still take the time to create a comprehensive business plan. A business plan can serve as an invaluable roadmap and help you stay on track as you launch your new franchise. So read on to learn how to create a franchise business plan the right way.
The first section of your business plan should be an executive summary. This portion should briefly touch on the other areas of your plan, so you may find it easier to write this section last. Keep it brief — between 250 and 500 words — and discuss the business itself, your products or services, and your overall plans and projections.
For your company description, you should focus on the history and structure of the franchise, as well as providing details on your individual business. What products or services are offered? Will your business be set up as a corporation or LLC? Who is your target audience? What are your short and long term business goals? By answering these questions, you’ll develop a good overview of the franchise and your part in it.
Service or Product Description
This is where you’ll go into more detail on the products or services that your business will provide. In addition to describing your offerings, you should also touch on why your service or product is valuable to the customer and what sets you apart from your competition. If there are any opportunities for product or service line expansion in the future, be sure to mention that as well.
Analysis of Market Research
The remainder of your business plan will be more data-centered, starting with market research. Use this section to prove to lenders that you’ve done your research regarding your location, customer base, and industry trends. Be sure to highlight the size of your target audience and demand for your products or services, especially within your service area. Lenders will also want to see past, current, and future data regarding your particular industry. Finally, include an analysis of any competitors, comparing them to your business and detailing their strengths and weaknesses.
Operation and Marketing Strategy
Here, you should include all of the details about how the business will operate and attract customers. Things like days and hours of operation, real estate needs, number of employees, marketing strategies, and training programs. As a franchisee, your parent company should provide you with much of this information, since you will be using their proven processes and strategies.
In this section, you’ll go over the management structure of your business. If there are multiple owners, this is where you will introduce them and explain their roles. Are they simply providing financial backing or will they be involved in day-to-day operations? You will also need to include information on your management team and the value that each member brings to the business.
Financial Plan and Outlook
Now it’s time to outline your expenses, revenue projections, and financial needs. You should create a big-picture overview of your financial situation, starting with your expenses. Be sure to include:
- Overhead expenses
- Insurance costs
- Loan repayment
- Licensing or permit expenses
- Any other relevant costs
Next, explain in detail where the funding is coming from to finance the venture. This includes any investors, credit or loans, personal savings, contributions from non-owners, etc. The lender wants to see that, if they agree to invest in your business, you have the additional funds required on-hand.
Finally, present your revenue projections, backed by data and research, and indicate how and when you will be able to pay back the loan. Use this section to build confidence in your plan and show the lender that your business has a high chance of success.
At the end of your business plan, you can also include an appendix, if needed, containing additional charts, data, financial statements, relevant media, etc. A business plan is your opportunity to showcase your business and explain to potential lenders why they should invest in you. But it will also be an invaluable resource as you step into the journey of business ownership.
If you are looking for a franchise opportunity with excellent growth potential and the opportunity to make a difference in your community,
So what are you waiting for? Get in touch today and change your future with a Right Hand Senior Care franchise.