Beginning a business requires time. It takes a great deal of commitment. The planning process may seem scary when someone is new to the business. But making a business plan is easier than you might think, especially if you own a business franchise and have someone else write the plan for you.
This guide will walk you through the five most crucial business plan parts, helping you stay focused and explain your goals to others.
A Summary for Executives
When you first launch a company, you will want cash for it to be successful. However, most financial lending organizations will want you to present a business plan before they agree to give you a loan.
Creating an executive summary may make it simpler for potential lenders to understand more about your company.
The most important aspects of your business strategy are broken down and summarized in an executive summary.
It should be between 250 and 500 words long and present a high-level picture of your primary business’s fundamental operations and goals. You shouldn’t be concerned about a large amount of data. In some of the other sections of your strategy, you may want to include specific numbers.
Even though this is the very first section of your business plan, you should save this step for last. After you have finished the other business plan sections, drafting the executive summary will be much simpler for you.
An Overview of the Company
You will then proceed to give an outline of the company itself in the following step. Because you are starting a business from scratch as a franchise owner, explaining the company you work for and the products or services it provides is acceptable.
In addition to this first summary, you will additionally need to include the following:
- The statement of the company’s mission
- The location of the franchise
- The year the franchise was established (or will be established)
- Your Competitive Edge
If you are a franchisee, the parent company can provide you with some helpful direction when developing a strategy for your firm.
You should be able to explain quickly what the company does and fill in the basic information about where your franchise is. You can read more information about how to be a franchise owner.
After completing the foundational steps, you will be expected to present a market study.
You don’t need to go into excruciating depth here, but you should be ready to answer queries such as,
- Who is your target market?
- What is your overall strategy for marketing?
- What projections do you have for the expansion of the market?
You should also include information about your local competitors and how you plan to deal with any problems they might cause.
You will have to rely heavily on your franchisor’s marketing and promotional resources to succeed as a franchisee. But that doesn’t mean it’s not your job to put the marketing plan into action on a local level.
You’ll have the chance to explain how you plan to use the marketing materials the company gives you as part of your regular work at your franchise site.
In addition, certain information regarding your management team must be included in your business strategy. As a franchisee, you’ll find that this process is relatively uncomplicated.
It would help if you defined yourself, adding information like the following:
- Previous work experience in the industry
- Key skillset
- a possible income amount.
You’re working on boosting your confidence regarding your leadership abilities, which is particularly crucial when applying for a small business loan.
You may also offer some information on the help you will receive from the company if you accept the position. This may include training, equipment, and marketing materials, among other possible examples.
The projections for the finances
Many business owners find this the most challenging aspect of developing a company plan.
In most cases, the following components must be included in your financial projections:
- The projections for sales
- Composed of both assets and liabilities,
- Expenses budget
- The statement of cash flows
- Forecasts of future earnings
Don’t worry if the meaning of these terminologies completely boggles your mind. Your franchisor will most likely offer you administrative assistance in formulating a detailed and precise business strategy.
Given that these figures are based, at least in part, on the historical performance of the Florida franchisee, you may need corporate data to represent your financial position accurately.
In addition, you can also explain any requirements for financial support in this section. This is a crucial consideration when looking for a loan for your business because you’ll want to make sure you have enough money to cover charges such as your franchise fee, equipment, and other additional startup fees.
There Is an Opportunity Awaiting You in Franchising
After you have finished writing your business plan, you should review it to ensure it is understandable.
If you want to improve your chances of getting a loan for your small business, your franchisor can assist you with polishing facts and data.