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Do I Need a Franchise Business Plan?
Unless you have enough money to buy a franchise outright, including all the start-up costs and a nice safety net of cash to carry you through the lean times until your business is more firmly established – of course you need a business plan!  Even if you’re independently wealthy, a business plan will serve as your road map to success.  Besides, most corporations won’t even consider selling you a franchise without first seeing at least a rudimentary business plan.

How to Write a Business Plan for Your Franchise
There are a number of places to go in order to create the perfect business plan for your franchise.  There are books for sale at your local bookstore as well as many Web sites with valuable information.  Surprisingly, your franchisor could be a worthwhile source, and they can certainly offer advice on the sort of material they want to see from you.  The basic business plan, whether for a franchise or any other kind of enterprise, should contain the following elements:

• Introduction – Someone who reads your introduction should get a basic understanding of the business you plan to operate and what you recognize as its challenges; this would include a basic description of the product or service on offer, an overview of your primary competition, and how you plan to get things started.
• Management team – These are key people in charge of the operation, so you will want to describe them in terms of their experience and skill levels as they relate specifically to the type of business you are starting.
• Marketing plan – No business will succeed if your customers don’t know you’re out there; you will want to lay out your marketing ideas, making sure they match the goals the parent company establishes as the owner of the brand.
• Financial projections – With assistance from your fellow franchisees, those who already operate a business identical to yours, you will be able to arrive at some fairly accurate numbers regarding your expected sales, expenses, and resulting cash flow; it’s always better to err on the side of conservative numbers.
• Funding needs – Most franchisors have specific numbers in mind when they sell a franchise, such as the cost to build a store or remodel an existing location, the acquisition of equipment and inventory, and so on; this step allows you to assess the money you have against the money you will need to get started.

As Promised – Eight Top Tips [In Question Form]

1. Think first about where you want to end up – What is your exit plan?  How much do you want to earn over what period of time?
2. Understand your future customers – Who are they?  Where do they come from? What will motivate them to buy from you?
3. Don’t overestimate your financial success – Do you have enough cash to carry you through some tough times?  How much do you really expect to make the first year?  What is the true profit margin enjoyed by similar businesses in the same industry?
4. Stay on top of the competition – Who are your main competitors?  Why have they been successful?  What can you learn from them?
5. Set yourself apart from the rest of the pack – What makes your product, service or location a better choice for consumers?  What can you do, through promotions, customer care or some other factor, that will compel people to buy from you?
6. Don’t create a business plan in the dark – What person do you know who would be a good candidate to review your business plan?  How willing are you to accept worthwhile criticism and make the changes necessary to achieve success?
7. Take a chance on financial success – Are you up to the challenge?  Do you have what it takes to make the tough decisions under pressure?  Do you recognize the potential rewards once your business is off the ground?
8. Stick with it – OK, so this one is not in question form: Creating a business plan is hard work.  Don’t expect to create the perfect document overnight. Get help wherever possible, but recognize that success and satisfaction require some personal sacrifice and a whole lot of effort. 

Help With Your Franchise Business Plan
Once again, your franchisor can be a terrific resource.  Use the franchise agreement as a blueprint for the types of things you will want to include in your business plan.  Ask to see the plans of other franchisees in the system – you’ll be surprised how much help they will be willing to offer.  Finally, check out the various software suites available for sale online and through office supply stores.  You might find one that is the perfect template for your own franchise business plan, or at least one that will give you a good running start.

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