They say luck is 90% preparation.
So, if you want to be one of the lucky few selected to helm a leading franchise opportunity, you should probably prepare better than the rest of the pack.
When constructed well, these comprehensive documents cover everything you need to know about the franchise and everything the franchisor needs to know about you.
Franchise business plans are invaluable playbooks. They demonstrate to a franchisor that you’ve thought more deeply about the opportunity than other franchisee candidates while setting you up for success once you become a franchise owner.
We’ve compiled four reasons highlighting why you need a comprehensive franchise business plan for your next franchise opportunity.
1. Stand Out From The Crowd
In many cases, franchisors have no shortage of candidates to consider for their next franchise opportunity. They have the luxury of selecting from top candidates in competitive pools.
To stand out from the crowd, you’ll need to exhibit drive, initiative, and expertise. There’s no better way to build trust and make yourself memorable than with a thorough, well-thought-out franchise business plan.
Remember, the owners likely already put in years or even decades of hard work to build their brand. They have much at stake with each new franchisee they take on board.
A good reputation takes a lifetime to build and one bad decision to crumble. If they seem overly cautious, remind yourself that they may have been burned in the past by poor, unreliable franchisees.
You’ll have to prove that you’re not only a capable but exceptional ambassador for their brand.
How? By doing your homework.
Conduct in-depth research covering their history, strategy, and industry sector. Demonstrate how you can not only replicate but build upon their past successes. Highlight data points that make a compelling argument as to why their next franchise should be in your neighbourhood.
All in all, show that you’re ready to start thinking like an owner. If you look the part and sound the part, you just might get the part.
2. Easier Financing
Unless you’re already well on your way to financial freedom, you’ll likely need a bit of help covering the franchise fee and startup costs of a new franchise location.
In total, launching a new branch could range anywhere from a few thousand pounds to a few hundred thousand pounds. That’s a big bet to place on any entrepreneur, especially if you don’t have an established track record of success with prior businesses.
To create the best franchise business plan in the UK, put yourself in the shoes of a loan manager.
If you were that bank loan manager, what would you want to see to help you sleep at night? What signs would you be looking for to improve the odds of collecting reliable payments on the loan?
You might be on the lookout for a business plan that demonstrates a thorough understanding of the industry, the franchise’s business model, and its needs for future growth. You’d want the applicant to easily and succinctly outline a schedule for loan repayment, highlighting compelling data points to support their confidence.
As a prospective franchisee, enlist the help of an analytical-minded friend. Pitch your business plan to them just as you would to a bank or investor, and encourage them to be ruthless in their questioning and critique.
While it might sting in the moment, it’s always better to know the weak points in your armour so you can address them before going into a real battle.
3. Discover Roadblocks Early On
Of course, a franchise business plan is so much more than securing funding or standing out from the candidate pool.
If you’re taking your time to write a comprehensive strategy, you’ll likely discover a few stumbling blocks. Perhaps the location isn’t as perfect as you once thought. Maybe other franchisees encountered a revenue plateau around a shared point.
These discoveries might feel like failures. They’re not.
No business opportunity is flawless. If you look deeper into every success story, you’ll find hundreds of issues that had to be ironed out along the way.
Be happy that you’ve discovered them now rather than in the moment. This means you can form a proactive plan to succeed where others floundered.
As you brainstorm potential roadblocks, think of a half-dozen solutions for each one. When they inevitably arise throughout ownership, you’ll have a game plan for every possible scenario.
4. An Invaluable Playbook
A franchise business plan doesn’t become obsolete once you’re given the keys to the castle. The document transforms into something much more valuable — a playbook.
As you’ve considered the optimal locations, mapped out a predictable generation of revenue streams, and anticipated potential roadblocks, you’re more prepared than anybody to deal with the predictable unpredictability of business.
You’ve run dozens upon dozens of scenarios and prepared for each one. This enables you to react intuitively to icebergs as they arise while providing you with an invaluable map to refer back to whenever you’re lost at sea.
Two key employees resign without notice? It’s not ideal, but nothing to lose your head over. Just refer back to the playbook.
A branch location requires unforeseen maintenance? You already outlined three potential solutions in the franchise business plan.
Revenues soaring beyond your wildest dreams, and you’re not sure what to do with the extra cash? It should be muscle memory at this point — refer to the playbook.
Learn How To Write A Franchise Business Plan
Beginning with any new franchise opportunity can be incredibly exciting but equally nerve-racking. For every happy accident, there might be ten quite unhappy mistakes.
That’s exactly why every prospective franchisee needs a franchise business plan in the UK.
Yes, it can be an incredible tool in helping you secure funding and separate yourself from other candidates. Even more importantly, it provides an invaluable opportunity to research, brainstorm, and prepare for any obstacles.
Browse our information centre to discover everything you need to know as you’re gearing up to make a franchise purchase, like how location affects customer growth and our comprehensive list of hot and trending franchises.