Practical Planning For Your Franchise
Whether we think about it or not, we do a bit of planning every day. For instance, the urgent things that need to be done, the bills that have to be paid, shopping, groceries and school activities for the kids.
Planning helps with these short term things, and longer-term things as well. For example, if you’re planning a party, you would set a date, decide on a theme, invite people, set a budget, work out the menu, buy the food and prepare it.
So, you’re setting goals and planning all the time. You just might not have thought about it that way. Planning works out the order of things and breaks them into smaller chunks. This helps you focus on what needs to be done.
The same approach applies to your franchise. Planning is extremely helpful when you run your own business. In fact, your results depend on it!
In a franchise, many aspects of business operations are set by the franchisor. However, the goal setting and planning are your responsibility.
When you’re creating your plan, the best place to start is with your goals. If you run a business, it’s important to decide what you want to accomplish and write down your goals. We’ve found that many who do this enjoy their business and have a sense of accomplishment.
We’ve seen goals produce extraordinary results. From achieving sales targets to improving profits, or winning awards. We’ve even seen franchises turnaround from a struggle to success.
It’s best to start with goals that are achievable and realistic. One way to get an idea of what is achievable is to ask other franchisees or the franchisor.
Your Business Plan
A good business plan will help you manage your business well. It sets out your goals and the actions you‘ll take to achieve them. Here are some points to include in the plan for your franchise.
Step 1: Review Your Results
Your first step in creating your plan is to do review past performance. This will help you identify areas for attention in the plan.
Pre-work includes a review of your past financial results. Look at sales, in the last year did they go up or down, and why? Look at the main expense items, can they be improved? Look at the net profit – how do you feel about it?
Doing this review will undoubtedly help you focus on goals for the year ahead!
You should also consider if your franchise has any specific requirements that will need to be taken into account. It’s also a good time to consider any investment you may need to make in your business. For instance, new equipment or staff training.
Step 2: Write Down Your Goals
- Write down how much money you want to make as an income for yourself
- What level of sales you’ll need to achieve this
- Set targets for key expense items, such as the cost of goods sold, operating expenses and wages
- Identify other goals you have for the business
Step 3: Actions
Write down the actions you will take to achieve these goals. Examples might include local marketing activities, and recruiting and managing staff.
Keep Track Of Progress
It’s really important to check in on progress against your goals. Don’t just prepare your plan and leave it in a drawer! One of the best ways to do this is to have a regular business meeting monthly or quarterly. Monthly is best.
The monthly meeting is where you review progress and see what changes you need to make either to your plan or your actions.
This article is subject to copyright by Peter Knight and Kate Groom of Smart Franchise. It may not be copied or distributed for any purpose without written permission. Permission has been granted by Peter Knight and Kate Groom of Smart Franchise to Top Snap International to make this article available to their franchisees via the Top Snap Academy.