Start-Up Franchising | Business plan for franchising projects


Business plan and integrated franchise services


We create business plans for franchise projects – market research, competition studies, economic -financial feasibility studies, brand identity, concept interior design. We make turnkey your First Pilot Store.
The beginning of a franchise project starts with a concept.
A successful concept is built from a sharp and inspired vision of the entrepreneur who has understood what elements make his business unique, and has the ability to consistently answer a few questions.
First, how to differentiate the idea from other competitors in the market?
The answer to this question triggers another question in franchising that contributes to the transition from a concept to a true format:
How to work on replicability of a business model?
Replicability is the magic word in franchising. In other words, all the efforts an entrepreneur makes on the “franchise engineering” tour are always linked to the need to create a replicable model.
To achieve replicability of an idea there are drivers that an entrepreneur must follow, like a mantra, namely:

  1. the simplicity of the business idea;
  2. the originality;
  3. the functionality of the layout;
  4. the consistency between positioning and brand image;
  5. the formalization of workflows;
  6. standardization;
  7. the optimization of processes.

They are all fundamental, but a few more words should be said about some of them. Simplicity is one of them. An idea when it is simple is easily replicable because those who want to replicate it in the market know that they have to follow those few characteristics that make it unique compared to competitors. Simplicity also has another advantage: it makes the idea more appealing to possible investors, who always have too little time to evaluate projects and tend to favor those they can understand more easily.
Formalizing work processes is another crucial activity. Architecting a work process well, in fact, has so many benefits, such as making the flow of activities understandable to everyone, improving the organization of work (by immediately uncovering what is not working).
To formalize a work process, we need to follow a few steps, which we briefly describe:

  • design it, imagining which work processes are most effective;
  • describe it, putting the process on paper in a few words;
  • create an outline, to make it even more externally usable;
  • identify obstacles in the work process and already imagine possible solutions.

From formalization then we review another key concept for the replicability of a business, namely standardization, which involves providing patterns or examples to guide people in various business activities. Without a standard, there is a risk that people will use their judgment in addressing problems and guiding decisions, with the risk of mutating the organization into an anarchy.
The growth of the Network is then critical to attracting potential investors. Investors are focused on two aspects of the franchise business: to its traction, i.e., the numbers that the franchise network is able to generate, the outlets that have been added in a given time frame, etc.; and finally, to the growth potential that the company demonstrates.
An entrepreneur in franchising who aims to attract investors must be able to have his or her eyes always turned toward the future, just as an investor thinks. The tool for accomplishing this is the business plan, a dynamic document that must be continually revised to achieve the economic and financial performance that the entrepreneur hopes for.
A well-designed business plan includes five main ingredients:

  1. Executive Summary: An intro to the plan that includes goals, market numbers, benefits, business model, and profit margins;
  2. market and competition analysis: here the analysis focuses on demand analysis and competition analysis;
  3. competitive advantage, this part of the paper explodes the theme of originality of the idea, answering a question: Why should the investor support this formula and not that of one of your competitors?
  4. Marketing strategies: in this part of the plan, you must demonstrate that you know well which promotion channels are best for launching your franchise and explain why you have focused on those and not others;
  5. Economic-financial analysis: this is the most important part of the plan. Data, numbers and statistics should be included that demonstrate the effectiveness of the business model and estimates for the future.

The business plan is not the only tool the entrepreneur has at his or her disposal to convince possible lenders. Crucially, in order not to quench the appetites of potential investors or buyers, there is a need for proper and comprehensive legal documentation: a good franchise contract and a well-crafted operations manual make it much easier to successfully negotiate.
If you would like to know more secrets on how to work on creating a format, what activities to carry out to make it replicable, dwell on the first and second chapters of the book in the book Let’s Franchise.
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If you want to know more about how to create your own format from scratch or develop your franchise network, book a free consultation.

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