A Franchise Business Plan

A Franchise Business Plan

Owners of both independent and franchised businesses are called upon to make entrepreneurial decisions each and every day. Decision-making is part of the package called business ownership. When pursuing the franchise purchase decision, make sure you put on your entrepreneur's hat. It may be what convinces your franchisor that you are the right one for the system.

Pursuing an independent business requires a business plan, but how about when pursuing a franchise business? Is there a reason to have a franchise business plan? If so, why? Doesn't a franchise business already have a plan set in place?

Is there a big difference between a traditional start-up business plan and a start-up franchise plan? Essentially, the franchise business plan must combine components of both the franchisee and the franchisor. A franchise business plan, in effect, merges elements of both companies. If you're trying to come up with such a plan, be sure to cover the following eight basic categories, which according to inc.com, is very important. You may notice that some are slightly different from those found in traditional business plans.

* Abstract. The abstract in your franchise business plan is briefer than an executive summary. It serves as a prologue.
* Business summary. This summary retrieves the omitted subjects of a conventional executive summary and combines them with elements of the traditional company description. Nothing is left out, just rearranged.
* Franchise overview. The overview replaces the usual industry analysis.
* The market. Treatments of the market and the competition combine to form the market section.
* Marketing plan. Marketing and sales strategies are conventionally included together in the marketing plan.
* Management qualifications. Essentially the same as in traditional business plans, this section describes your management staff and your operational framework.
* Financial pro formas. Also a traditional section, it groups together your financial projections for the first year and for a longer range of three or five years.
* Exhibits. This final section is where you put supporting documents needed to evaluate your business plan - either to support information in other sections or to provide auxiliary information not covered. If you have lots of exhibits, consider inserting some in the sections where they apply.

Inc.com also writes, if the goal of your franchise business plan is to secure financing, include a specific category that doubles as a loan request or as an investment offering proposal.

Whether you're pursuing a franchise business or an independent small business having a business plan is important. Knowing what is expected, not only of yourself, but also the franchisor, helps in the decision making process. No business should ever start without a business plan. Even if you're considering a small home based business, you should have a business plan. The plan will give you a good perspective of what is expected, both short and long term.

Looking for more information about planning for your franchise business, go to http://afranchisesolution.com.

Jeffrey Sloe, Internet Marketing Advisor to The Ultimate Team
440-725-3729
jeff@internetmarketingadvisors.net
http://ultimate.org

SOURCES

The Daily Resource for Entrepreneur's--www.inc.com