How To Create A Franchise Business Plan
No stone should go unturned when outlining the shape of your new venture. To succeed in business, it’s crucial to know your objectives, and how you’re going to fulfil them. When purchasing a franchise, you’ll need a blueprint for a robust, consistent turnover model, knowing how you’ll operate and whether it’s viable for the long haul.
Consider these points when creating a franchise business plan to present to the group’s board of Directors. Here’s how to structure a franchise bid for an organisation like Rainbow International.
Introduce the concept
If you’re serious about taking over a franchise territory, you’ll have to present your ideas to the Directors of the company. They’re the stewards of the brand, after all: they get the final say on who can capably maintain their reputation.
Thus, get straight to the point in the introduction – what the company represents, how its services are delivered, the size of its operations, and any associated risks. Draw links between delivery and the things that make the business tick behind the scenes.
Above all, evidence that you’ve grasped the unique selling points of the franchise. If you don’t know what makes the brand stand out, you won’t capitalise on its hard-won characteristics.
Outline the market
Secondly, analyse market trends in the area you’ll be operating in. Competition will be fierce, and the proposal should demonstrate an understanding of what works, and what doesn’t, for a business like yours.
Franchisors like Rainbow International can guide you with this, enabling you to make accurate forecasts on expected growth. It will also help you visualise your sources of income, and what customers tend to expect.
Break down your finances
Lenders are wary of giving their cash to someone who could potentially burn it up in a short spell of time. Franchisees must present their skills at turning a profit after an agreeable period – if you can hit the ground running, it’s far likelier that you’ll make good on your commitments.
Of course, there’ll be an initial stretch where you’re trying to break even, given that working capital will cover the startup costs of the franchise. Consider how long it’ll take to get out of the red and balance the books in anticipation of sustained growth.
So, identify the equipment you’ll need, what the rent of your premises might be, how much you’ll pay employees, and the cost of local marketing efforts. Compose some achievable balance sheets for a typical year of trading. Don’t overestimate; it’s far better to prove you’re a sensible forecaster than going way above what’s feasible, based on your research.
Yet what are the methods of finding all of this out? Is there a go-to model for sourcing your data, as well as writing the plan itself?
At Rainbow’s Discovery Days, held regularly at our Head Office in Mansfield, you’ll have the chance to formulate a plan of action. Existing franchisees will be on-hand to advise you on the costs, demands and profitability of a Rainbow International branch. Furthermore, should you want to make a bid, we’ll guide you towards a robust franchise business plan.
But first, contact us, and uncover more about the realities of being a Rainbow partner.