Taking time to hash out a franchise business plan that includes your financial and personal goals will help you outline key elements and expectations of your new venture.
Doing the work upfront to create a detailed franchise business plan helps alleviate some of the speed bumps involved in business ownership. A business plan will allow you to mitigate surprises, secure funding, and achieve your goals. A five-year plan will help you grow your business and stay on top of the competition. It’s also an important tool to attract talent. Top-level employees will want to know your plans for the future, including expansion and product diversification, to feel secure.
Investing in a franchise helps make the process of creating a business plan a bit easier. Franchising allows entrepreneurs to start a business with a proven brand and the support their need to thrive. One of the first steps any person considering business ownership should take is to put their franchise business plan down in writing to ensure they understand what they want their franchise to achieve. Many of the parts of a franchise business plan are already well established by the franchisor. All franchisors are required to file franchise disclosure documents with details about their finances and brand. The FDD can serve as a guide as you create a detailed business plan. Another advantage of investing in a proven business model is having a peer network to provide guidance as you start planning.
Moran Family of Brands is a leader in the aftermarket automobile and window tinting industry. The company, which franchises six brands, including Mr. Transmission, Milex Complete Auto Care, and Turbo Tint, has more than 22 years of experience helping franchisees achieve success. Moran offers ample franchise training and support to guide fledgling entrepreneurs as they follow a new path.
Here’s what we advise our franchisees to include in their franchise business plans.
- Elevator Pitch. The first portion of your business plan should be an executive summary that includes your mission statement and the basic information about the services your business will provide. The elevator pitch for franchisees will be a cut-and-paste portion of your business plan as they have a roadmap to follow with a proven track record for success. It’s also a good idea to include the location of your operations and executive leadership team in this section of your plan.
- Products and Services. Every business plan needs to provide details about the products and services your business will offer. In this section, it’s essential to highlight your unique selling proposition — what separates your business from the competition. Moran provides a franchise advantage by offering co-branding. Having multiple brands under one roof allows our franchise owners to be a one-stop shop for customer needs and generate a higher average ticket price.
- Industry Research. Your business plan must provide information about the market and target customer demographic. Potential business owners should do a deep dive into the competition and the forecast for industry trends and growth potential. For example, the aftermarket auto industry provides a recession-resistant investment for entrepreneurs. As the average age of cars on the road increases, the demand for repairs is on track to rise, creating a sweet spot for our brands.
- Marketing Strategy. Having a plan to build your customer base is key. Franchise owners typically contribute a portion of their gross sales to take advantage of marketing support and guidance from their parent company. As part of their initial training, new Moran franchisees learn the tools they need to drive traffic and increase sales.
- Crunch the Numbers. Every business plan needs to showcase detailed startup costs and financial projections for your franchise. Make sure to include information about the financial resources you will use to get your business up and running, as well as your personal net worth. If you plan to take out a loan, creating a plan for repaying it needs to be a top priority. Moran franchisees should expect to invest at least $118,219 to open their business. They also need a net worth of $250,000 for the company’s automotive brands and $60,000 in liquid capital. To help give potential business owners a leg up, Moran partners with Key Commercial Capital, which offers a variety of business funding options.
Find Out More About Moran
A franchise business consultant for Moran Family of Brands is just a phone call away. To learn more about pursuing a business opportunity in the aftermarket automobile and window tinting industry, click here to schedule a time to talk.