Did you know that a new franchise opens on average every eight minutes? If you have a great business idea, there’s never been a better time to join this movement and start your franchise. But doing so requires starting from a strong foundation and knowing how to create a franchise business plan.
If you’re in the planning stages for your franchise, keep reading; we have all the information you need to get your franchise idea ready for launch.
What is a Franchise Business Plan?
Every good business owner starts out with a well-thought-out plan. A solid franchise business plan both creates a stable platform for maximum growth and shows potential lenders that your franchise is a good investment opportunity. To do this, you will need to create a franchise disclosure document that outlines your business plans.
By planning for all of the steps of your franchise’s operations, you are prepared for anything that can come your way.
8 Steps of a Franchise Business Plan
When thinking about how to create a franchise business plan, here are the most important steps to keep in mind.
1. Research Local Franchises
There’s no need to reinvent the wheel. As you’re in the initial planning stages, take a look at other franchises in your area. See which industries are most successful, which ones are worth avoiding, and which type of franchise might be perfect for your new enterprise.
2. Map Business Structure
Your franchise business structure is at the very core of your business model and can determine whether or not you make a profit. Some of the most common franchise structures include:
- Master franchising: the master franchisee can sell individual franchises, frequently internationally.
- Area representative franchising: the franchisor signs a franchise agreement with individual franchisees.
- Area development franchising: a developer signs an agreement for the rights to a predetermined number of locations.
- Individual franchising: each franchise unit is sold individually.
- Conversion franchising: existing businesses are converted into the franchise structure.
Determining which of these structures works best for your franchise idea can make the difference as to whether your franchise sinks or swims, so be sure to give this some thought.
3. Plan to Scale
Whether you’re a future franchisor or franchisee, think about scaling up from the very beginning. In simple terms, planning for your future success makes that success possible.
Build from the bottom up. Your franchise can only scale successfully if it’s grounded in a solid base. Work with business partners and advisors who can help you create a rock-solid foundation to ensure successful scaling up.
Set long-term goals. This isn’t the time to be short-sighted. Put operational systems in place that help you grow and overcome the road bumps that inevitably come your way.
Ensure strong leadership on all levels. This involves choosing the best managers and employees who will usher in success. By trusting your employees, you can focus on growth from the top down.
4. Develop Business Product/Service Listings
Your product or service listing helps you stand out from the crowd. Focus on details that show what you’re all about, and include the important information that potential franchisees, investors, or customers need to know.
As you’re creating your product or service listings, get other pairs of eyes on your work. A colleague’s input can help you make sure you’re putting the very best information out there for people to make initial investments.
5. Make a Management Summary
Your franchise management summary is one of the most important documents you’ll make. This document quickly conveys the most important aspects of your management, giving readers the details they need to understand what your franchise is all about. Include a mission statement and financial plan for potential franchisees.
Through your management summary, readers will learn exactly how the franchise is structured and who is responsible for growing the business, which will give them the confidence to invest.
6. Develop a Marketing Plan
Where would any business be without a great marketing plan? Developing a strong marketing strategy for your franchise is the key to getting customers in the door. Do market analysis to determine your potential customers and how best to market to them.
When creating your franchise marketing strategy, create a balance between print and digital marketing to get noticed by your target markets. Perennial marketing materials such as flyers, brochures, and mailers can be paired with digital marketing strategies such as social media campaigns and pay-per-click advertising.
By creating a marketing plan from the beginning, you give every location the best possible chance to attract business.
7. Execute Effective Branding
Branding matters more than ever before, so developing a branding plan from the get-go is worth your time and effort. Your branding guidelines will keep everyone on the same page so that everyone who interacts with your materials has similarly excellent experiences.
When developing your franchise branding, create detailed guidelines that all future materials will follow. Some questions to answer include:
- Which typefaces are used in your materials?
- Which colors are used in text and logos?
- What voice and tone do you use?
- How do you communicate on social media?
By developing answers to these questions on the front end, you ensure a similar brand experience for everyone who interacts with you.
8. Find a Printing Partner
Once you’ve developed your franchise business plan and your marketing materials, it’s time to get them out into the world. This is where teaming up with a great printing company makes all the difference.
When choosing a printing partner, make sure their goals and experience are in line with your needs. Do they have demonstrated experience working with franchises? What is their track record with helping franchises scale up? Do they provide services such as custom online print portals, which make ordering and shipping to multiple locations easy? Talk with the printing companies you’re interested in working with to ensure that they can answer these questions to your satisfaction.
Ace Franchise Planning With The Print Authority
As you finalize how to create a franchise business plan that sets you up for success, partner with The Print Authority! We’re the professional printing company that gives franchises the support they need. For over 30 years, we’ve been helping franchises grow by providing top-quality printing, including online print portals, high-quality print materials, and speedy nationwide shipping.
To help your franchise succeed, contact The Print Authority today!
