How do you write the Products and Services section of a business plan?
Things have changed a lot in the intervening years. Today, the extremely rigid Franchise Disclosure Document, which is proffered by a franchiser before any agreement is pursued, must contain a preordained list of 23 items. Most franchise agreements run 75 pages or longer.
Compared with these highly-formatted documents, a franchise business plan tends to be much shorter and focus on the dream. The main difference is that it must address in detail the economics of both the franchiser and the franchisees - and show how the parent and its affiliates will be able to make money together.
The Basics As with any business plan, you should expect to see several sections laid out in a franchise plan, including most vitally an introduction or abstracta management overview, a marketing strategy, detailed financial projections, and the financial requirements for investing in a purchasing a franchise.
Again, you might want to do additional research - even just spend a few minutes on Google - to learn more about and verify the backgrounds of everyone involved. Where you would normally find industry analysis in a business plan, most franchise business plans typically include a franchise overview, along with a description of the market the franchise would be entering - and its competition.
These should be thorough, and lead seamlessly into a marketing plan. The plan should specify how territories will be carved up, and how many locations per territory a franchisee will be allowed or expected to open.
Finally, a franchisor should convey a sense of culture and personality in his or her business plan. Look for a franchisor to display confidence and ambition as well as a sense of loyalty to the prospective franchisees in the proposal. Will the Marketing Strategy Work?
How is the business going to attract new customers? Why will the product or service seem attractive to customers? What role do you as an owner or investor need to play in funding and facilitating local marketing?
This section should answer those questions. It should also include detailed advertising plans for the future, including time frames, budgets, and specific marketing tools to be employed, says John E. Clarkin, a professor of entrepreneurship at the College of Charleston.
If so, are the solutions the plan proposes viable?
Understanding and Evaluating the Financial Details The financial section of the business plan should provide a franchisee with information about the investment necessary to be successful, as well as the expected return on that investment. The financial section is typically divided in two parts: Financial projections and financial needs.
In the first section, you should find detailed income statements, cash-flow estimates, and balance sheets for estimated income. As a would-be owner, you should be wary of projections that seem unreasonably high, or that ratchet up too quickly. Rosy projections suggest the franchisor has not left enough room for the sometimes-inevitable snag, delay, or complication.
The second section on needs should include a thorough tally of all the costs involved in starting up a franchise, including the initial capital needed to cover early marketing expenses as well as the operating losses incurred during the start-up phase. The breakdown of marketing funding should be re-evaluated here, and the total amount of capital needed from both parties should be clearly laid out.
Any loans need to be included, including what the franchisee is expected to put on the line. Other documents related to personal and business finance should come attached in the "exhibits" appendix at the back of the plan.
These are designed to provide supporting information and detail, and they are definitely worth a look. Evaluating a Franchise Business Plan:Use a business plan template to create your business plan by adding the detailed information behind the pitch deck and executive summary outline..
To attract investors a business plan should include the following: 1. Cover page: Include the company’s name, contact information and company logo. 2. Table of contents. 3. Company background and opportunity summary: Provide a quick history of the. Starting a franchise can be a good business decision.
But deciding which company to work with can get confusing. There are a number of factors to consider and it is difficult to make a prediction about the volume of sales that you can expect in the.
This is a sample business plan, so the company and business information are fictitious. This plan reflects our standard business ), check appendix e 10 Calculation from active marketing website, check appendix f barnweddingvt.com Sample Business Plan Market Growth: Health care market in US has grown at a very healthy rate in the.
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The appendix is always directly behind the last section in the business plan.
In most cases, the financial information is the last section. However, the order of the business plan’s sections. barnweddingvt.com How to Write a Food Truck Business Plan • 2 1. EXECUTIVE SUMMARY As we explained in “How to Write a Food Truck Business Plan,” the Executive Summary will appear first in the final version of your document—but you should write it last.