A good business plan should be positive, enthusiastic, simple and sale the project. Use the business plan to promote yourself, your location and your business concept. Prove you did the necessary due diligence and research. A good business plan consists of the following:
- Site Description. Describe where you will be locating. Who are your business neighbors? If located in a mall, who are the big anchors in that mall? What are the big traffic draws to that location and area? What is the address?
- Competition. Describe the competition or lack of competition within a five mile radius. What competitive advantage will you have over the competition? Discuss the competitions negative aspects, if any.
- Budget. Put together a twelve month projected budget indicating the projected profit and losses broken down month by month. Include years two and three showing the total annual projections only. Note: We can provide you with a budget template spreadsheet. This template is complete with formulas already entered. This will help you tremendously and shorten your budget development time. The budget template is located on our Printable Applications page. Please call us for assistance, if needed.
- Assumptions. Describe how you arrived with the projected budget numbers, particularly with the gross sales. Who did you visit with? Did you interview other Franchise owners and the Franchisor? Are your expenses and gross sales taken from other existing locations with similar demographics? How many customers do you expect daily? What is the expected average dollar sale per customer? If you expect higher than average gross sales, please explain thoroughly. How many days per year will you be open?
- Demographics. What is the population, average age, predominately white collar or blue collar, education level, race and average household income in your business area, etc.? A demographic study can usually be obtained from the Internet, Chamber of Commerce or Mall Management. Just print off the demographic study and attach.
Promote yourself, your background and skills. Describe who will run the daily operations and promote their skills as a good Manager. Who will keep their regular employment? It is always positive to have a strong secondary source of income. How much secondary income will continue?
Finally, top off your business plan with good fluff material about the franchise system you are starting. Include information about the research you did in order to find the right franchise and the right location for you. Include positive promotional fluff material about each of the Owners holding 20% or more.
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