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Posts Tagged ‘franchise’
Wednesday, October 12th, 2011
By Laura Shaheen
One of the more hidden aspects of marketing is SEO, and it’s crucial. You may read SEO and be tempted to bury your head in the sand, but we’re here to tell you that it can make a world of difference—and that it’s not as scary or time-consuming as it sounds.
SEO stands for Search Engine Optimization, and it can be summarily described as the Google-ability of your company. There are a multitude of tips and tricks that can launch your website up the search engine ranks, and many of them just require a few quick tweaks to your existing practices. SEO has exploded in recent years, with books, papers, and professions being built around the practice of maneuvering websites higher up search engines. There have been some scandals, mostly with some companies abusing the system by flooding the internet with extra tags and claims for products that they don’t actually sell, or that doesn’t accurately represent their websites. For the most part, however, an SEO campaign can be a clever way to boost yourself above your competition, and it cannot be ignored.
To really begin to understand the web of SEO, it’s necessary to delve into the basics and work your way up. Search engines like Google rank pages based on a few secret formulas, but it’s fairly universally understood that more legitimate pages rank higher. For example, your unknown company blog will appear more credible if a legitimate page links to you, and thus your blog will rank higher. There are plenty of qualifications for legitimate pages. Some are simply established by age, some are established by popularity, some, like Facebook and Twitter, are megaliths in their own rights. The beauty of this is that you can link your Facebook pages to your blog or website, and Google automatically recognizes this as a more legitimate page than one with no links. Promote cross linking between all of your pages to encourage the flow of traffic and SEO optimization.
In that same vein, having links and references on your page will also optimize your SEO. Another way to increase your visibility is to make sure the titles of your pages reflect your company succinctly. The Google search spiders don’t look at website pages as we do, they scour the HTML and plaintext, and therefore they won’t be impressed by your fancy images, but they will scan the first few words of your titles. Titles that reflect your business will be turned into keywords and your page will be more accurately discovered in Google.
Tags and keywords are another way to increase your SEO. At the end of each of your blog posts, having descriptive keywords and tags not only organizes your site for your visitors, it provides the search engines with a way to classify your page. Make sure you have a variety of tags—for example, this blog post might have the tags SEO optimization, social media, marketing, small business optimization, franchising, etc. Be sure not to overtag, as search engines frown upon it. If you overtag your website with inapplicable terms like “shoe shopping, free dental work, and Leonardo DiCaprio,” you may find yourself booted out of the system and back to square one.
SEO is a wonderful tool because it allows you to exert a finer degree of control over where your website appears on the internet. The tips above are simple, yet effective tricks to move your page up from page 234 of Google to perhaps page 10—and more advanced research can lead you to page one, and the multitude of profit potential that exists in such a place.
Tags: franchise, franchisee, Marketing, PR, public relations, SEO Optimization, social media
Posted in franchise, Marketing, Reputation Management, Social Media, The Dwyer Group | Comments Off
Monday, October 3rd, 2011
By Laura Shaheen
Recently, I had the opportunity to interview Mary Thompson, the president of Mr. Rooter and the chair for VetFran, about the VetFran program. It was an eye opening chat, and one that I believe deserves to be advertised as much as possible.
VetFran was founded after Desert Storm in 1991, by Don Dwyer, the founder of the international franchise company, The Dwyer Group. After 9/11, Don Dwyer’s daughter, Dina Dwyer-Owens, the current CEO of the Dwyer Group took it upon herself to revitalize the VetFran program. There are over 400 members of VetFran, all franchisors looking to give discounted franchises to veterans. The current chair of the program is Mary Thompson, the president of Mr. Rooter. So far there have been over 2100 deals given to veterans throughout the years. And Mr. Rooter, Thompson’s own company, has been named by USA Today as one of the Top 50 Companies in American to work with veterans.
“I was a franchise owner before, and I’ve done every job since. I’ve been on every side and seen it from all levels,” Thompson said. “That’s why I’m so passionate. I know I would not have had the success I’ve had without the marine corp. and the franchising business teaching me how. Veterans make the best franchisees: they are disciplined, but follow a system. We are looking for leaders who want to lead toward a common goal.”
Indeed, a marine sword flashes from the walls of Thompson’s office, a flash of deadly silver and ivory handle polished until it glows in the late afternoon sun. Thompson herself speaks on the subject with true passion, as evident by her recent travels to Washington DC to support the new Help Veterans Own Franchises Act.
“The bill is a win/win situation,” Thompson said. “It gives veterans tax credits up to $25,000 of the franchise fee. This money is cash that veterans can then invest back in the company. It pays taxes back into the community. The veteran now has a job, and also has created jobs, and the franchisors end up with a great franchisee.”
As the chair for VetFran, Thompson has spent her time trying to expand the program to its limits. Through her leadership, the website has been redone and a portal is being created to marry veterans with different job opportunities. Their goal is to increase the number of franchisors on VetFran 15%, and they’re already part of the way there to next year’s goal.
“At a recent event, VetFran experienced 4 percent growth at a single event,” Thompson said, relish in her voice. “The greatest thing about the program is that VetFran isn’t just doing ‘the right thing to do.’ VetFran is the right thing to do, but it’s also the smart thing to do. Franchising is a great medium and a great match between veterans and franchisors. Veterans ‘get’ the system. Most people have to be taught that.”
Through her many engagements, like speaking at the Entrepreneurship Bootcamp for Veterans with Disabilities, Thompson has had the opportunity to spread her knowledge about the world of opportunities available for veterans and franchisors alike. Having wounded warrior, Staff Sergeant Shilo Harris there, however, as living proof of her words, made the impact all the more tangible.
“I always have said ‘If not now, when?’ when it comes to VetFran and veterans programs, and Shilo said something that has really stuck with me. He told me ‘That’s not a question, that’s an imperative.’ And he was right.”
Helpful links:
The VetFran website
Information on the Help Veterans Own Franchises Act and how to help:
Tags: franchise, Mr. Rooter, Mr. Rooter Franchise, new franchise owners, Veterans, VetFran
Posted in franchise, Marketing, Mr. Rooter, Veterans, VetFran | Comments Off
Wednesday, September 21st, 2011
By Laura Shaheen
Despite today’s downturned economy, or perhaps because of it, more and more business owners are discovering the secret of stability and prosperity: franchising. Franchising, though not for all businesses, is an ideal way to grow your company. Franchising allows for the duplication of successful business plans and then applies them directly to your own business. Through the aid and support from the Dwyer Group, you as an owner can spend less time bogged down in the time-consuming minutia of daily business life and can apply yourself to improvement and expansion.
The Dwyer Group is comprised of 7 potential concepts that you might be interested in operating. One of the greatest benefits of working with the Dwyer Group is that you can either convert your existing business into a successful franchise, or you can start from scratch and build your franchise from the ground up. This flexibility allows you the freedom to run your company, while also having support when you require it. Between the Dwyer Group’s proven business plans and excellent training opportunities, becoming a franchisee means starting out ahead and with more connections that you could previously dream.
There are 7 potential franchises that encompass the Dwyer Group, and each one has its own unique benefits and is recession-resistant.
Rainbow International- Rainbow International is in the smoke, fire and water restoration industry. This industry is both recession-resistant and profitable. In addition to those basic services, Rainbow International also offers mold removal services, biohazard clean up and commercial services. With a Rainbow Franchise, you will receive full training and support, and will receive help from our national accounts and marketing team in order to help you get the optimal number of jobs for your business.
Glass Doctor- Not only is Glass Doctor the largest fully franchised residential, business and auto glass franchise company in the U.S. and Canada, they also have the ability to make your existing glass company skyrocket. With a Glass Doctor franchise, you will have access to experts in specialty glass services that can drastically increase your client base. Through a franchise with the Dwyer Group, you will have access to discounts and rebates on all that you need to run your company, and access to special, proven business systems that will streamline your company and maximize results.
Aire Serv- Aire Serv is a leader in the heating and air conditioning industry, an industry that is both competitive, profitable and always necessary. By opening an Aire Serv franchise, you can learn how to increase profitability, have access to our cutting-edge research and learn to expand your existing company into something much greater. With over 175 locations worldwide, there are hundreds of franchise owners in a support system, as well as the entire Dwyer Group team, who will provide help and information on running a successful business.
Mr. Appliance- Mr. Appliance is the largest fully franchised appliance repair company in the world. By opening a Mr. Appliance franchise, you are getting the chance to benefit from fifteen years worth of experience in servicing high-end appliances and operating successful businesses. The industry is both dynamic and competitive, and many people previously owning appliance repair services have made the switch to a Mr. Appliance franchise and seen their companies really take off.
Mr. Electric- Mr. Electric is an electrical home service provider with impeccable connections. Already the official electrical home installation partner of the Home Depot, this powerful alliance has helped our franchise owners become leaders in the industry. With this franchise, you will be able to provide special electrical services like solar patio lighting, security lighting, custom projects and much more. As a franchise owner in such a successful business, you will be allowed the freedom of running your own business with the security of support from other franchise owners and headquarters just a phone call away.
Mr. Rooter- A leader in the plumbing industry, Mr. Rooter allows you to build a successful franchise due in part to the training and business services you will receive on your induction into the franchise family. With a long, illustrious history, Mr. Rooter was founded in 1974 and has grown to over 300 franchise locations across the United States, Canada and Europe. Opening a Mr. Rooter franchise means that you will have access to important help that will allow you to focus your time on improving efficiencies and performance. As always, being a part of one of the Dwyer Group’s franchises also means that you will receive the immense discounts and rebates available through the Dwyer Group’s many connections.
The Grounds Guys- The newest franchise opportunity in the grounds and lawn care industry, The Grounds Guys franchise comes with all of the systems, training, support and tools to become a fully profitable and competitive franchise. With all franchise territories in the United States open, opening a franchise has never been more accessible. Regardless of your experience, you will receive top of the line training and you can focus on streamlining your business to maximize profitability.
Whether an existing business owner or a new one, any one of these franchises can help you take your business to new, impressive heights. Having the support of other franchisees and the invaluable training and resources from the Dwyer Group means adding layers of security and aid that are difficult to find in smaller, non-franchised businesses. Many franchise owners have praised the system, stating that they are able to devote their time to actually running the business and expanding it, rather than simply putting out fires as soon as they spring up.
Convinced? Click here to get started.
Tags: Aire Serv, franchise, franchise ranking, franchisee, Glass Doctor, Grounds Guys, Marketing, Mr. Appliance, Mr. Electric, Mr. Rooter, new franchise owners, Rainbow International, The Grounds Guys
Posted in Aire Serv, franchise, Glass Doctor, Marketing, Mr. Appliance, Mr. Electric, Mr. Rooter, Rainbow International, The Dwyer Group, The Grounds Guys | Comments Off
Monday, September 19th, 2011
By Laura Shaheen
The times of business are changing, and the internet has been at the forefront, leading the charge. Now, instead of searching through phonebooks to find specialized services, most people bring their hunt to the internet. There are endless reasons why: speed, convenience, etc., but also because the internet provides what the yellow pages do not: customer reviews.
As human beings in the internet generation, we feel more comfortable in taking advice from complete strangers than simply picking a name from a hat. Typically, this is a good thing. Truly excellent businesses are allowed to shine through their positive reviews, while their lesser competition gets bogged down by deserved negative reviews. However, there are always the one of two negative reviews that really scare people off of a certain service or company. There reviews might be there for a whole host of reasons. Honestly, some people simply like to stir up trouble. They might have had a less than satisfactory time with your company, or perhaps they’re mistaking you for a different company. No matter the reason, negative reviews need to be dealt with, for better or worse.
But how? You may ask. I have no control over the website and this review is chasing off sales!
Never fear, there is hope. Follow these tips to battle negativity and encourage likability and your company will reap the benefits of a greater and more positive online presence.
1.) Stay calm and never lash out when angry: There are probably very few things in the world more aggravating than Googling your company only to encounter an atrocious and malicious negative review about your company. The review might be an outright lie, but the most important thing to remember is to never lash out when angry. The internet is like an elephant, it never forgets, and people have long memories. If another prospective customer logs on, reads a negative review and then reads you screaming back at the negative customer, they aren’t going to be prospective for long. Remove yourself from the situation and do not post anything for at least 24 hours. By then hopefully your rage will have cooled, and you can begin to make amends to your online reputation.
2.) Offer to meet and discuss the issue: So you’ve waited 24 hours, you log back in and the review still gets your blood boiling. That’s normal, especially if the critique is warrantless. The best way to run damage control on the situation is to respond to the review in a calm, collected manner and offer to make reparations. Perhaps you could respond by saying: I’m sorry you feel this way about your recent service with Your Company. We would like to get to the bottom of this issue. Please contact us at this number, or feel free to come into our office to discuss your situation personally. We look forward to seeing you. This approach doesn’t just nip the issue in the bud, it makes you look coolly rational and willing to deal with even the most fractious consumers.
3.) Don’t get bulldozed: No matter the business, there will always be people in the world bent on tugging the tiger’s tail. These people might be looking to take advantage of you, or perhaps chancing on the bet that you would rather pay them off than deal with them. They might be looking for refunds or rebates, and they most likely will have done things like this before. If you truly look at the situation and realize that they are making outrageous demands with no fact to substantiate them, do not simply give in to what effectively is blackmail. They are holding your company’s reputation hostage, and giving in will not serve the company’s best interests. Be polite, but firm.
4.) Ask yourself if there truly is a problem: Though there are always the pranksters and scum looking to simply ruin a day, oftentimes customers who post negative reviews really do feel cheated and wronged, and this is something to take very seriously. Perhaps your employees mishandled a situation, or maybe something went wrong on your end. Investigation into complaints can turn your most staunch opponent into your biggest fan if you resolve their issue quickly and show that you value their opinion.
5.) Build reputation in other ways, effectively drowning out the bad noise: A lot of the time, you cannot simply wave a magic wand and remove the bad review from the review site. The best way to counter a bad review is to drown it out with positive ones. Give people a little credit, most people will not take the one negative review seriously if it is lost in the flow of happy customers. Build your company’s reputation by providing excellent service, but also by boosting your online presence. This will also help with your SEO (Search Engine Optimization) and will drown out the negative voices.
1.) Converse, don’t just sell: People don’t want to be lectured to, and the minute you start rolling into a sales pitch, oftentimes people begin building their reasons why not to submit. Build relationships and it will become their idea to use your services. The different is palpable.
2.) Respond! The glories of social media: Oh social media. You’ve added a face and a personality to companies. No longer are we simple names in the phonebook, or even an address on the web. Now, through social media, companies are living, breathing entities that can interact personally with their customers. If a customer posts something on your Facebook, negative or positive, write back to them.
3.) Inquire and ask for opinions: People love to give their opinions and they love to answer questions. Make your social media pages as interactive as possible and your online reputation will become infinitely more likeable.
4.) Honesty and genuineness: Perhaps the most important point, it’s very easy to read something for its genuineness. Your customers are going to go with the company that they feel is the most honest, hardworking and which will ultimately give them the best deal and experience. Allow your honesty to shine through and negative reviews will become a moot point.
Tags: franchise, franchise ranking, franchisee, Marketing, PR, public relations, The Dwyer Group
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Tuesday, January 11th, 2011
By Kerry Pipes
Getting to know a little more about you as a prospect is one of the first things franchises are interested in. The initial franchise application process is a screening mechanism by which franchisors begin to determine your interest and qualifications.
Today, it is common to find initial franchise application forms on franchisors’ websites – but most will be happy to send you one as well. This is a good stepping off point for beginning the communication process. You should not only take this very seriously, but also expect to spend some time gathering the information and completing the application.
Most franchise applications include many of the same requests for information, and it can get quite detailed.
One of the fundamental requests you’ll discover will deal with the specifics of your current financial situation. The franchisor will want to know about your personal assets (and liabilities), for example, because they want to make sure you have enough financial resources to operate the business in case it runs into unforeseen financial difficulty.
And it won’t just be your financial status the franchisor is concerned with. You will probably also be asked about your spouse’s financial state. Some franchisors will want to know if you have financial partners or backers. These are all important questions.
Again, the franchisor wants to be sure that you, your spouse, and your partners are prepared to make the financial commitment necessary to start and run a franchise business successfully.
Beyond finances, you’ll encounter detailed questions concerning your experience, education, background, and even aspirations. These questions are designed to help the franchisor determine whether or not you meet their profile. In other words, they want to know if you’re the kind of person they think will be able to run the business successfully and fit into their franchise system. They do this not only to protect their brand but also their existing franchisees.
Successful franchise organizations depend on franchisees who follow the franchise system completely. As a result, they don’t want people who they perceive as too independent, or people who won’t play by the book because they like to experiment and try out their own ideas. In one sense, franchising is not for those who think outside the box. In this business, there’s no need to reinvent the wheel.
Franchise applications are kept confidential and neither the franchisor nor the prospect is bound in any way by the submission of the initial application. Again, take the time to fully and accurately complete the application and return it to the franchisor promptly. You can then expect a quick response and most likely a telephone interview with a franchise representative.
What you can expect to find – and be asked – in a typical franchise application form:
- Detailed personal information: including all contact information and other biographical and character background
- Business interests: they’ll want to know if you ever owned a business, have been involved in any kind of litigation/arbitration, or have any partners
- Location preferences: will usually ask for cities/territories you’re interested in and any alternates you would consider as well as if you are open to relocation
- Detailed employment history: where you have worked, what you did, for how long, and annual compensation
- Educational background: and any other pertinent training/experience
- Personal financial statement: assets, liabilities, net worth, source of income, and total income
- General inquiry: many franchisors will want to know what you already know about them, their franchise opportunity, and why you are interested
Tags: franchise, franchisee, new franchise owners, The Dwyer Group
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Thursday, January 6th, 2011
By Eddy Goldberg
You get only one chance to make a first impression. So does the franchisor.
That’s why, after selecting which franchise brands to investigate, it’s so important to evaluate the franchisor’s response at every point of contact. Whether that contact is by email or by phone, the way a franchisor responds to your initial inquiry is often (though not always) an indicator of how they will treat you if you become a franchisee in their system.
The first contact is usually online, through the franchisor’s website. In most cases, you initiate the communication by filling out an online form. Franchisors will request your basic financial information (net worth, liquidity), history in their industry, management experience, requested locations, and more. Their primary purpose is to weed out those who do not qualify, most often based on their finances.
There is no reason to divulge too much personal data at this stage. Franchisors are merely trying to save their time and yours. If you don’t possess the required net worth and liquid assets, there is no point in the franchisor following up. It’s the first screen.
In fact, some franchisors will disqualify prospective franchisees based on how they fill out the online form. Their thinking is this, and they have a case: “If this person can’t even follow directions and properly fill out a form, how will they ever follow our franchise system?”
Most franchisors today will follow up your initial inquiry with automatically generated emails, slowly introducing you to the concept – and further qualifying your capabilities, timetable, desired geographic area, and level of interest in their brand. These emails are crafted to evaluate your response at each stage, as well as to inform you further about the franchise opportunity.
Then there’s the website itself. Is it easy to navigate? Is there one-click access to a separate franchise page? Is the material laid out cleanly and clearly? Is there a FAQ page? Does it answer all or most of your important questions? Are there testimonials from franchisees? The website is designed to entice qualified prospects by providing enough information to keep them interested, but not give away the store. That will come later in the initial phone call with a franchise sales representative.
The first stages of contact with a franchisor should be a time for you to get answers to your biggest, most important questions: “How much money can I make?” “Is there a territory available where I want?”
This is also a time to determine if your personal and financial goals and values match those of the franchise organization. These are the people you are considering partnering with for 5 or 10 years or more years to build your financial future. Their culture, and your fit with it, will be crucial in building a healthy, long-term relationship.
A good franchise organization is interested in the long term, in the revenue generated over the years through ongoing royalties – not in collecting one-time franchise fees. (These are supposed to cover only the franchisor’s costs involved in training you and helping you get started on the right foot, marketing, and a premium for the brand name and operating system – which is what you’re buying). Why does McDonald’s, for instance, stand head and shoulders above its competitors? Not so much because of the quality of its food as the power of its brand and the quality of its operating system.
Remember, you are betting a large portion of your financial future on the brand you choose, so be selective. There are about 3,000 franchise brands out there in virtually every business sector. So if you get the feeling that the people you encounter at the brand of your choice are not the type you’d like to deal with for the next 5 or 10 years, consider other brands. Yes, it’s about making money… and it’s also about lifestyle, values, and goals, and the people and organization you will feel comfortable with in the long term.
Tags: franchise, franchisee, new franchise owners, The Dwyer Group
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Tuesday, January 4th, 2011
By Kerry Pipes
Franchising is a great business model and with so many concepts and brands out there to choose from, research and due diligence are a big part of your assignment.
Of course you’ll receive a wealth of information from the franchisor detailing and outlining almost every facet of the system and operations, but there is one other area of research that you owe it to yourself to uncover (many franchises even require that you do this).
Once you’ve narrowed your franchise brand choice, you’ll want to talk to some existing – and even former – franchisees about what it’s really like out there in the trenches every day running the business. This is part of your due diligence and it’s imperatively important.
Item 20 of the franchisor’s Franchise Disclosure Document (FDD) will feature a list of both current and former franchisees. Pick a few of them and sit down and call them to inquire and discuss. You may even need to arrange a time to talk with them in more detail – remember, some franchisees are extremely hands-on and busy running their stores. But they will do their best to arrange to speak with you.
As you call and talk to franchisees, you’ll be able to ask any questions you have and you’ll most likely get frank and candid answers from them. It’s worth your time to contact these people to determine if they’re happy with their investment, the support they’ve received from the franchisor, and if they are happy with the income level they have achieved. Likewise, if they have left the system, you want to know why, and if they knew then what they know now would they still invest in the franchise system. Above all, don’t be afraid to ask any question. This is your life and financial future you’re talking about.
To help get you started, here are some basic and fundamental questions you should be asking these franchisees:
- How happy are they with their franchisor? Ask them to describe their overall level of satisfaction.
- What type of business background, business experience, education, and/or skills did they possess before becoming a franchisee? How important was that?
- How long did it take for them to realize a return on investment? This can help you determine, approximately, how long it would take you to start seeing real profitability – and help you analyze what you’ll need in the interim.
- Did the franchisor properly estimate the amount of operating cash that was needed in the beginning?
- What about unexpected or hidden costs? What were they and how did they affect the franchisee and their operation?
- Have their earnings met with their expectations? This could be a delicate area of discussion, but it’s important for you to find out as much as you can.
- Did the franchisor provide adequate and thorough training to get them up and running?
- Were there any problems with the territory, cannibalization of sales, competition?
- Any restrictions that have affected their business? Limitations on products and services that can be sold, vendor requirements, etc.
- How has ongoing franchisor support been for marketing/advertising/employee training?
Start with these questions and you’ll probably have a few more of your own. This due diligence is something that you will be glad that you did.
Tags: franchise, franchisee, new franchise owners, The Dwyer Group
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Thursday, December 30th, 2010
A new year is upon us! How many of you have experienced such change in your life from last year to this year?
For me, the New Year is about reflection. What do I need to improve from last year and, most importantly, what did I do that I should keep doing. Take a few minutes to answer these questions for yourself.
As I advised for Christmas, take a look at The Dwyer Group’s Code of Values and systems. Can we help take your business to the next level? Can we open doors to new possibilities? Can we improve your quality of life?
The Dwyer Group isn’t going to set you up for failure. Actually, we want to see you succeed and prosper, because that adds to our own success. We are such a tight-knit group, a family, and perhaps becoming part of our family could change your life.
Just a thought to think about… Happy holidays, all. May the New Year bring you changes, for the good, and see you succeed to new heights.
Tags: franchise, franchisee, The Dwyer Group
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Thursday, December 23rd, 2010
The season of sharing is upon us! Enjoy a fantastic holiday with your family and friends.
If you own your own business, enjoy being your own boss by allowing yourself time to spend with those you love most. This is one of the best times of the year to be in the franchise business, especially with The Dwyer Group. You have your family and you have your franchise family, so be sure to thank both for being there for you all year round.
And maybe you aren’t franchising with The Dwyer Group…yet. Look into it. What does an hour cost you if it could guarantee your future success? Make your gift to yourself simple; sit down with a cup of hot chocolate or peppermint coffee and read up on what franchising can do for you, whether you have a business currently or not.
Happy holidays, everyone. Be safe, be merry and, most importantly, have fun in the process!
Tags: franchise, franchisee, The Dwyer Group
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Tuesday, December 21st, 2010
By Kerry Pipes
Anyone who’s thinking about starting a new business is going to need to create a business plan. Why? Well banks and lenders require one for starters. But also because business plans are one of the crucial foundations for the beginnings of a business. And the franchising industry is no different.
Business plans are smart. They provide a road map to where you want to go and signposts for how you are going to get there. Writing a business plan causes you to consider challenges, risks, and opportunities that will be coming your way.
Because you are choosing to purchase a franchise, your business plan will be a little easier to create than someone who is starting a business from scratch. For example, many franchisors already have business plan templates – or elements of business plans, at the very least – that you can use and adapt. And you’ll be able to obtain much of the financial information that’s necessary from the Franchise Disclosure Document (FDD).
Basic business plans can be boiled down to five main sections. These are the main things lenders will be looking for.
First up, you’ll need a concise and informative introduction section. Here you want to describe the business and the kinds of products or services for sale. You should evaluate your market and territory and include that information here. Analyze your competition. Discuss the operational approach you will take and the challenges and risks you’ve identified with taking a business into this market.
Second, describe your management approach. Outline your management structure and philosophies. Detail all of the management positions/roles and talk about the individuals who will be serving in these positions. Explain what makes them unique and qualified to excel. Your management team is going to be critical to your franchise’s success.
The third section of your business plan should be the marketing plan. Here you want to explain how you’re going to reach customers and get them through the doors of your franchise business. Outline all of your marketing and advertising plans. Discuss the value of your products and services and why they offer a unique advantage to your company.
Next, include financial projections. Here is where you’ll want to include pro forma financial statements such as income statements, cash flow projections, and balance sheets. The idea is to use this data to point to how you project the business to do once it opens. Your projections should be very conservative and take into account as many variables as possible. Remember, projections are difficult to make – especially in a start-up business – so include as much information as possible in this section.
Finally, include a section that details your financing needs. Here you should provide, in detail, a complete analysis of your start-up costs. Discuss how much capital you will need (and where you plan to get it) to cover your operations from day one until you begin turning a profit. This section is important even if you are not borrowing money.
Creating a business plan forces you to think deeply about the business, analyze numerous options, and formally project a course of action. You’ll learn more and you’ll understand more about operating a business. And for that, you will be glad you did it.
Tags: franchise, franchisee, new franchise owners, The Dwyer Group
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