How to Write a Business Plan for Your FranchiseThis vital step can make the difference between success or failure in the franchise world.

You're set onbecoming a franchisee. You may think it's time to call a franchisor, tell them you're interested, and getfunding from your local bank, right? Wrong.

If you're considering buying a franchise, you'll need to write a thorough business plan before moving forward.

A business plan is a detailed documentthat describes how your business will achieve its goals. Consider it an essential tool for any business owner — including franchisees!

Sound daunting? It can be. But it's a crucial and necessary step in starting your own business. Plus, becoming a franchisee means that the franchisor will provide some of thestrategies, plans and overall business information, with some minor tweaks for your specific market.

Here's how to get started.

Related: Considering franchise ownership? Get started now and take this quiz to find yourpersonalized list of franchisesthat match your lifestyle, interests and budget.

Start with comprehensive research

Before you can begin writing your franchise business plan, you need togather information about your franchise business. Research the industry, market trends and competitors in the area. You should utilize aSWOT (strengths, weaknesses, opportunities, and threats)analysis of the business, as well.

Next, research thefranchisor's history, vision, mission and values. This will help you understand the franchisor's expectations and see if your goals align with the brand. You may have already done a lot of this research whennarrowing down your franchise choices.

Related:The 4 Biggest Myths About Franchising

Define your business concept and target market

Your business concept should includedetails about your product or service, pricing strategy, location, unique selling proposition and market advantages.

Much of this information will be supplied by your franchisor. However, make sure to tweak it correctly for yourspecific location and audience.

Develop a financial plan

Afinancial outlineis a critical component of your franchise business plan. It should include details about yourstartup costs, ongoing expenses, revenue projections and profitability.

You should also share cash flow,balance sheetsand income statements here. With these documents, you can readilyidentify any gapsin your business and develop strategies to address them.

Related:10 Tips to Go From Employee to Boss, From Franchisees Who Did It

概述你的营销和销售策略

You may get a headstart from your franchisor on themarketing and sales strategy. This is where you'll want to include more information about your target audience, marketing channels and tactics to promote your business.

From asales strategy perspective, include your pricing strategy, sales team structure and sales targets that are tailored to your area.

Develop an operations plan

Youroperations plan should include detailsabout your day-to-day work, staffing requirements and supplier relationships. You should also outline any technology and equipment needs, inventory management andquality control procedures, some of which your franchisor may dictate.

Create a management team and personnel plan

Yourmanagement team and personnel planshould detail the leadership structure of your business, each team member's role and responsibility and the qualifications and experience needed for each position.

You should alsooutline a staffing plan, which will include your recruitment strategy, employee benefits and training and development programs.

Related:The 4 Biggest Myths About Franchising

Create an executive summary

An executive summary is literally asummary of your business plan that will provide all the necessary informationto someone who only has a few moments to review your business plan. It should summarize the key points of your franchise business plan and research.

Get started by outlining your business plan

一个特许经营的商业计划,在分钟imum,should include the following sections:

• Executive Summary:This section provides a brief overview of your business, your mission statement, goals and target market.
• Company Description:This section includes more information about your business, such as what you do or sell, your company history and your management team.
• Market Analysis:This section analyzes the market for your products or services, including your target market, competition and competitive advantage.
• Operations Plan:This section describes how your business will operate, including your location, your marketing and sales strategies and management and staffing plan.
• Financial Plan:This section projects your business's financial performance, meaning your revenue, expenses and profit.
• Appendix:This section includes supporting documents, such as financial statements, marketing materials and legal documents.

Related:10 Tips to Go From Employee to Boss, From Franchisees Who Did It

A business plan will help you succeed

Writing a franchise business plan is a critical step inbecoming a successful franchisee. It requires comprehensive research, a well-defined business concept, a solid financial plan, a strong marketing and sales strategy, a detailed operations plan and a competent management team.

Remember: It's a living document, so be sure toupdate it regularlyas your business grows and changes. This will ensure that your plan always reflects the current state of your business.

Tackle a business plan logically and seek help from an expert or your franchisor, as necessary. Then you're off to get your loan,finish your applications and open your doors!

Related:Is Franchising Right For You? Ask Yourself These 9 Questions to Find Out.