So you want to run your own business. You may be gearing up to catch one of the exciting available franchise opportunities. Or maybe you want to expand your current franchise and need a roadmap to guide your business growth.
Either way, there’s one tool you’ll need in your arsenal—a franchise business plan.
A solid business plan is the cornerstone of any successful franchise. It serves as a strategic guide, a financial forecast, and an all-important pitch for potential investors.
At Ceterus, we understand what it takes to drive a franchise business forward. So, let’s dig into franchise business plans and see how they can help your business scale.
Key Parts of a Franchise Business Plan
1 | Executive Summary
This is an overview that should include your franchise’s mission statement, business concept, and high-level details regarding your franchise’s location, employees, and company management. You also should briefly explain what makes your business different and the purpose of your business plan.
The purpose could include:
- If you’re looking for financing
- Need new partners
- Want to provide a roadmap for growth
Ultimately, this section is your elevator pitch – clearly defining your business and its value proposition.
2 | Company/Business Description
Your business description should go in-depth about your franchise business, the problems you solve, and how you fit into the market.
Explain the recipe for success you’ll bring to the table. Hit on your strengths and expertise.
3 | Competitive Analysis
This is where you’ll showcase that you know what’s up with your target market and the industry itself. Additionally, it should include a thorough analysis of your competition, outlining their strengths and weaknesses and how your franchise will differentiate itself.
Pro Tip! Be sure to look at trends and themes in your industry. This will help you build an effective business strategy and could ultimately help you secure funding from potential investors.
4 | Organization and Management Structure
This section outlines your business structure, ownership details, and the management team.
It is important to clearly state your legal structure, such as sole proprietorship, LLC, C or S corporation, limited or general partnership.
Additionally, include details about franchise ownership and the duties and responsibilities of each member of the management team. Highlight each team member’s unique skills and experience and how they will contribute to the success of your business. Adding resumes of key team members is a nice touch, too.
5 | Marketing and Sales Strategy
Franchising provides many advantages, like a well-known brand and access to national promotional resources. But you’ll still need to do your own legwork when it comes to local marketing.
Here is where you trace your strategies for attracting and retaining customers. This can include your marketing goals, sales strategy, KPIs, budget and digital marketing strategy. You should also discuss how these strategies align with the broader franchise brand.
6 | Financial Plan and Projections
Arguably one of the most important sections, this is where you provide a detailed overview of your financial plan. It should include projected income, cash flow statements, balance sheets, and other financial ratios.
Go into detail about business costs, like franchise fees, initial costs, etc. Explain your current funding, too. If you’re seeking funding, it should also include a break-even analysis, as well as scenarios that show profitability under different circumstances. Explain how you’ll use your funding as well.
If you’re worried about struggling to create a business plan, know that your franchisor will be a great resource. That’ll have data on market trends, customer demographics, financial performance of existing franchise units, and more!
Keep Your Business Plan Current
Your franchise business plan is a dynamic document that should evolve with your business. Keeping it current is crucial as it helps you stay on track with business growth and adapt to market changes. Here’s how.
1 | Refine Your Goals and Marketing Strategies
Keep your business on track by frequently reviewing and updating your goals to make sure they are still relevant and attainable. Also, adapt your marketing strategies to match market trends and customer feedback to stay competitive and reach your target audience.
2 | Evaluate Operations and Understand Profit Drivers
Operational efficiency is one of the keys to profitability. Regularly evaluate your operations and make necessary adjustments for scalability. Simultaneously, understanding what drives profit in your business can help pinpoint areas of improvement and potential risks.
3 | Review Your Financials Often
Routinely reviewing and analyzing your financial statements and monitoring your revenue is important for improving your franchise business’s financial performance.
This means digging into your income statements, balance sheet, and cash flow statements.
If you need a little help, consider partnering with Ceterus.
Ceterus As Your Solution
We offer comprehensive financial insights along with top-of-the-line franchise accounting and tax prep services.
With our tech-enabled software and a dedicated financial controller, you’ll receive help with your financial planning in the form of:
- Timely and accurate financial reporting
- Performance management, including benchmarking
- Dedicated financial consultations
- And so much more!
Don’t wait! Schedule a consultation with us today.