George Cohon, renowned businessman and founder of...
Having a solid, comprehensive business plan for your Canadian franchise business is a must for success. If you're planning on getting financing, you'll also need this plan to show the lender. Use the four simple tips below to put the finishing touches on your blueprint for your new business so you get off to a solid start with your new venture.
Expand your executive summary
Of course, the summary isn't meant to be an entire page, but it shouldn't be just a list of services, either. Here, mention how you are filling a marketplace hole and your growth potential. Include an outline of how your business will thrive given competition and the market.
Include risks and challenges in the description
Your business description will largely come from the franchise disclosure document (FDD). The franchise's history and overview in the FDD will give you a list of services or products offered, a competition and market overview, and an explanation of the operational process.
What you may need to add here is a summary of the challenges and risks your business may face. It may seem counterproductive, but without knowing just what you're up against, you can't create a strategy for success.
Detail your management
You'll need to show a clear plan for how your business will be run day to day. Don't just list the names of your management team as this does not give anyone a sense of their qualifications. Include prior experience and background information for each person you're listing in the management summary.
Lay out your financial needs
One very important section of your plan is your financial needs. Even if you're not getting a loan, you still need to know just how to plan for your finances realistically. Your FDD will contain some information you need for this section, including the estimated initial investment and startup costs. You'll also need to research any royalties or ongoing fees you'll need to pay and ask the franchisor about any other costs that could come up during your first year operating as a business.
Of course, there is no exact formula for developing a business plan for your franchise. As you work on your plan, keep in mind that it is your blueprint for your business and also a sales document that should show just why and how your business will be a success.