A business plan is incredibly important. It should demonstrate how a franchise will make money, how growth plans will be facilitated and what the business will look like in the next 5 years.
In a checklist, a business plan should include:
- Description of what the franchise will be doing
- How success will be achieved
- What the marketing and operational needs will be
- Business strategies to be undertaken
- Financial projections (both income and expenditure)
- Competitor analysis
It is important that a business plan includes clarity and focus. By mapping out development plans, identifying priorities and exploring growth potentials a franchise will put itself in the best position of achieving success.
It is highly likely that the franchise will also require business finance. Therefore, a clear financial strategy within the business plan which includes financial planning and considers potential investment sources should be outlined.
Once a business plan has been finalised and the franchise grows there is a tendency to forget about it. Day to day operations dictate that once a plan is set it can be left alone. However, is this really the right approach?
The commitment taken to create a business plan is extensive so why would it then just be left alone? It should in fact be an important business tool which is regularly referred to and continually updated. A franchise will need to adapt in the future so therefore the plan will need to be updated to reflect these changes. By committing time to undertake regular reviews, the business plan will remain integral to keeping the franchise on track, well balanced and capable of fulfilling growth initiatives.
There is no better time to revisit your business plan.
We have a specialist team of experts who are all vastly experienced and focussed on supporting franchise businesses to develop ‘lender friendly’ business plans.
If you have a question or need help with updating a business plan, please feel free to call us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk