How to Create a Franchise Business Plan

Many people opt for franchise businesses nowadays. The advantage of opening one is having the guarantee of a branded product to back you up. The proven market popularity is something which reduces some of your anxiety regarding promotion of a new product. Presently, most product companies prefer opening franchise outlets and leave the management to private parties on a profit-sharing basis. A franchise is a mutual, win-win solution for the product company, as well as the franchisee. The management gets the benefit of a proven brand name and the company saves on operation and setup costs.

About the Plan

Firstly, a business plan is a blueprint of everything that you plan to do in a business. It is the practical realization of your abstract idea of a business, considering all ground realities. It is a plan of action, which is designed after market research, operation cost evaluation, and after a decision to start up that business, has been taken.

Such a plan is made with two intentions. One of them is to have a clear and precise idea of what you intend to do in your business and the second is to sell your idea to entities that could finance your venture. Financial planning is the most important part.

Franchise opportunities are often advertised in newspapers. Business plans related to them, need to be written carefully. This is because, not only is it your blueprint for execution of business activity, but it is also an advertisement of your idea, which you hope to sell a financier, to get seed capital.

How well your business will run, depends on how well you plan and execute it. Leave no stone unturned, while preparing the groundwork for your business. The more specific, detailed, and adaptable business plan you have, more are its chances of success.

Making a plan is comparatively easier as you already have guidelines from a franchiser, about how he expects the business to be run. The possibility of innovation is really very less in case of this plan, as the franchiser usually dictates the designing, look, and operation of a business place. Usually, all these franchise outlets are clones and all that a franchise owner can decide is the location and scale of operation.

Tips on Creating a Plan

Writing a business plan proposal is an art. Let us discuss, what constitutes a good plan and what it should include, section wise.

Introduction to Your Idea
The first part will be a general introduction to the product that you plan to sell, its market popularity, challenges, and risks involved in the endeavor. This should also include the profit sharing ratio, that you will have with the franchiser.

Management Information
This will involve information about the planned chain of command in your business and the management hierarchy. It may also involve the names and designations of the pre-appointed people in the management, along with their work experience details.

Marketing
This will obviously involve the details of how you plan to entice customers for your product. Give a detailed plan of your marketing strategies, target customers, and budget.

Pro Forma Financial Projections
This is the projected performance of your business, which is based upon your market research and it’s extrapolated out of it. This should be a detailed report of expected income, profit, turnover, and operating cost. It should be a sort of future expected balance sheet, based on actual market data and research. You must back up your income projections, with real market data.

Finance Requirement
This part is for the financier, to whom you are selling your business idea. It should include a detailed analysis of the total cost of operation, marketing, salaries offered, purchasing, and other costs. You should come up with a definite amount of money, that you need and expect from the financier and should also include the profit sharing expectations.

Starting a business is one of the most exciting things you could choose to do. I wish you all the very best in your endeavor.

Aviation Business Plan

In order to realize the goal of starting your own airline and nurturing it through ups and downs, requires great deal of expertise and professional approach. Along with these, a sound financial backing, a highly capable and trustworthy set of individuals to manage various operations and other logistical support is a must. The beginning of a business plan itself signifies the dedication levels and the ability of the venture to rise in the competitive environment.

Aviation Business Development

‘Every great task or successful venture is achieved twice, once in the mind and once in the real world.’ This axiom illustrates the importance of a widely accepted and proven business tip, to have a sound and workable plan. A successful business venture, especially one as big as an aviation plan requires a ‘blueprint’, where the needs of the market, company’s projected position in the market, detailed working and marketing strategy and a viable back-up plan are chalked out.

If a survey of all the major corporations or businesses in the world is made, you will realize one common aspect. All these entities worked on an extremely workable and target oriented business plan. Some of the essential components of a well-thought aviation business plan are :

– The scope of the market
– Initial investment
– Carving your niche among existing business competition
– Financial requirements and scalability of project
– Marketing and associated support
– Large and trained personnel
– Raising Capital

Once you are ready with all these start-up requirements, the plan can be implemented with professional help. The National Business Aviation Association, Inc, is one such institution of aviation business groups which can help you in various matters. A sufficient business financing or a secured loan can be availed of, at relatively low interest rates and in case you are already into some other successful business operation, obtaining a big loan would be relatively easier.

The Extended Aviation Business Plan

The recruitment of people for areas like technological assistance, human resource management, finance professionals, the airline crew, the airplanes, locations to be served, flight operation and maintenance works, and so on, is the next major stage. These steps follow, once the foundation for the economic, legal, social, governmental and environmental clearances has been laid.

After you give a green signal to the start-up, the next crucial aspect is aviation business development. The sustainability of your venture, depends on how you serve the customers. ‘Customer is the king’, should be the guiding line for every ambitious and dedicated industry, especially the ones directly operating in the public domain.

It may be easy for many plans to start their operations, but the hallmark of a successful business is, the consistency of service. Good business becomes excellent, not by providing occasional good service, but by providing an undeterred and consistent service. Aviation business will also put you in many tight situations, where a lot of tight corners would have to be negotiated.

In such situations, your values and business ethics will come into play and can be a defining edge for your business. There may be several situations, where you might have to choose between what is right and what seems to be an easy way. At such times, always think with the long term perspective and make wise decisions.

At the end of the day, when you return from a hard day’s work, to face your near and dear, they should feel proud of your venture. The shine of a confident and morally sound business entrepreneur should glow in your eyes, so that you face the world with an ‘air’ of dignity.

Beauty Salon Business Plan

It’s pretty amazing to know that almost all the beauty salons have a very good business these days. The only reason is that people have become extra conscious about their appearance, and are willing to go that extra mile to make themselves more presentable. Hence, if you have a relevant expertise in this particular field, then you can surely think about getting into it professionally. Though it promises good returns, the competition is pretty tough. Hence, you must be prepared with a foolproof beauty salon business plan before you venture into this field. Some of the aspects that should be covered are given below.

Executive Summary

Executive summary is an abstract of the entire information in your plan. It includes the market analysis, strategies, competition, ideas, etc. Usually, it is short, of about 2 pages. It gives an idea about the entire plan at a single glance. It helps you to understand what the business is all about.

Company Description

Company description describes the entire functioning of the company. It includes everything about the company, the mission, goals, assets, etc. It also has an information about the start-up ideas and the objectives of the company. It may give a brief introduction of the founder members and the top management personnel.

Market Analysis

Market analysis is very important for any venture. It helps you to understand the scope of your work and its position in the market. It deals with the needs of the customers and what they expect from you. It also includes market research about the competitors. Hence, the market analysis should be properly done and expressed in accurate figures.

Marketing Strategies

Marketing strategies include the description of all the activities you are likely to adopt for marketing. It could be mouth publicity, advertisements in print or electronic media, hoardings, and billboards.

Workforce

Workforce defines the roles and responsibilities of each employee. It also states the qualifications required for each position. Workforce planning is an important aspect, as the employees are directly going to be responsible for customer satisfaction.

Financial Analysis

Financial analysis is another important aspect. It covers the cost of every unit in the business. It also mentions the prospects of returns. Financial analysis gives an overview of the total expenditure and the provisions to cover them.

A good business plan forms the back bone of any business. Even in this case, a sound idea is necessary for the smooth working. You may consult professional services for drafting one, or you may also refer to templates available on the Internet. It’s always a good idea to have a good idea ready before you start any new business, rather than starting it in a hurry and then later have to run around to get it going and profitable.

Planning for Starting a Home Based Business

A home based business needs to have a proper plan in place for it to be successful. Working from home is a wonderful option for those of us who cannot, for whatever reason, go to an office for work. Several employment options exist for such entrepreneurs. However, to take advantage of the offers, you need to be well planned and organized.

Step One

First things first, you need to know in which area you want to provide work. For that you need to examine your skill sets and qualifications. That should give you a fair idea of which service you are able to provide.

Step Two

Even at home, you should have a dedicated work area where you can work peacefully. Finding such an area is the key, especially if you are staying at home because of kids or some other responsibilities. You need to find a time and place, where you would not be disturbed or distracted. You can then fix the number of hours, that you can devote to your work based on these factors. Your earnings would therefore depend on the number of hours you can spend working, and how fast you can do your work within these restraints.

Step Three

The next thing you need to have is a business plan. An ideal plan will outline the above mentioned factors in clear cut terms. An analysis of cost and market factors, will determine your cost per hour. You can thus calculate your projected income based on the number of hours you work.

Step Four

Once you have a plan in place, you need to apply for the necessary licenses and registrations. Check with your local government for the required formalities. It pays to have the paperwork in order, so as to avoid legal complications at a later date.

Step Five

The next step is, obviously, getting the work. If your work is internet based, then you need to look for websites where you can get such work. There are several wonderful websites where you can get such work on the Internet. However, if your work is not Internet based, then you need to generate work from other sources. Place an Ad in the local newspapers. Throw a launch party for all your friends and family, and put the word out there.

Going Further

Let the work come to you. Once you get the work, do it well, so that your clients remember you. Don’t forget to discuss payment terms before the work is done, so that there are no misunderstandings later. Word of mouth publicity only works, if you work well and deliver on time. As for publicizing your work via other media: you need to keep on doing it all the time, so as to generate constant work.

So gear up and get started. Well begun is half done! All the best!

The Complete Business Innovation

Good ideas may surface from the farthest reaches of the organization. Thus, the challenge for top executives is to stimulate experiments across the entire organization, select the most promising of the lot, and disseminate them quickly and appropriately throughout the business.

We are living in a time when information and technology has given rise to abundance, so the competition in supply market is growing at a steady pace. Good ideas, in times like these, need to be nurtured and applied as efficiently and effectively as possible, in order to reap economic benefits.

Overview
Early research on innovation tended to address the organization’s ability to respond and adapt to external and/or internal changes (Burns and Stalker) (Hull and Hage). Subsequent work on innovation stressed more on proactive innovation and distinguished between the types of innovation. There are three types of innovation (process, product/service, and strategy), each of which can vary from incremental to radical and from sustaining to discontinuous.

Emphasis was on the organization’s ability to promote both process and product innovation, regardless of an immediate need for change (Kanter).

Innovation vs. Invention
Joseph Schumpeter defines innovation as the combination and creative application of existing and new knowledge of elements to improve existing and/or develop new products and services, production processes, organization-methods, and commercialization, in order to create or preserve added value.

The Oxford English Dictionary defines innovation as ‘making changes to something established’. Invention is the act of ‘coming upon or finding discovery’. It is important that we do not mix innovation with invention.

Business Innovation
Innovation is generated at individual, organizational, and environmental levels. Let’s look at various types of innovation.

1. Innovate Market or Innovation from Market (Consumer)
2. Innovate Industry or Innovation from Industry (Competitor)
3. Innovate Product or Innovation from Product / Process (Operations)
4. Innovate Team/Organization or Innovation from Team/Organization (Management)

Innovation from Market
“A business has only two basic functions marketing and innovation”, says Peter Drucker. However, Robert Tucker suggests five necessary steps to make a business innovative.

1. Innovation must be approached as a discipline, practiced and taught to employees.
2. It must be cross-functional, and not just left to the R&D department.
3. It must be proactive, and not just responsive to what competitors are doing.
4. It must involve everyone in the organization and everyone’s performance evaluation should include it.
5. It must be customer-centered.

First, second, and forth steps belong to innovation from organization. Third and fifth belong to innovation from market. Market surveys and research enable an organization to be innovative.

Innovation from Organization
Jim Biolos in Harvard Management Update offers the following six steps that need to be followed while making a team innovative:

1. Make sure that the members of the group are communicating with one another in a free-flowing or maybe even a freewheeling way.
2. Make sure that all the team members have equal and enough responsibility.
3. Show confidence in the team.
4. Provide the appropriate resources to the team, and make sure the members know that those resources are available.
5. Make sure that each team member has a challenging role in the work.
6. Monitor the pressure.

Team’s Success
A team usually consists of up to ten people, who devote about one-quarter of their time to the project for three to four months. Participating in a team is considered a plum assignment, because it provides exposure to top executives.

Employees of China’s multinational electronics company Haier, for example, discovered by visiting rural customers, that they frequently used their washing machines not only to wash clothes, but also to clean vegetables. Taking this new information and the potential market into consideration, Haier made a few modifications to its machine, and was able to make it versatile enough to wash both clothes and vegetables. This helped Haier become the market leader in rural areas of its home country.

Innovation from Management
“Managers don’t simply copy something they see elsewhere. They take pieces of practice or technology that they find and recombine them in novel ways to solve customer problems”, says Philippe Pommez, Natura’s R&D Director, “The hard part is not finding the new technology; it is knowing what you are looking for. This is where our conceptualization of new products and new lines that serve local needs becomes indispensable.”

Managers of companies situated in developing countries, sometimes despair of closing the gap with larger and better-funded multinationals. Clearly, there is hope for companies anywhere in the world to win through innovation and creativity.

Innovation from Industry
There are three important fundamentals of innovation and entrepreneurship.

First, an Industrialist searches for innovative opportunities and develops an innovative idea into a practical business or a service. Second is the industrial strategy that brings innovation successfully to the market. Third is free enterprise itself, and it focuses on the organization that is the carrier of innovation.

Innovation in Products
Switching to a new market with the same product can be considered innovative to some extent.

However, innovation in products is always the basic goal of any team, within an organization. Views of the customers through research and surveys are carry forwarded to the R&D team for further product innovation. Ultimately, it depends on how good you are at learning from the market, industry, and your team. Johnson & Johnson, the American multinational corporation, is a great example of constant and successful innovation in its products.

Attributes of a Family Business

Well-known Groups

Fiat Group (Italy) – Agnelli family
Grupo Modelo (Mexico) – Diez Fernandez family
IKEA (Sweden) – Kamprad family
L’Oreal (France) – Bettencourt family
McCain Foods (Canada) – McCain family
Samsung Group (South Korea) – Lee family
Tata Group (India) – Tata family
Reliance (India) – Ambani family
The Gap (USA) – Fisher family
Wal-Mart (USA) – Sam Walton family

Distinguishing Features

– A cohesive force usually exists behind the management of these organizations, providing a strong sense of mission and a shared vision ideally cemented by loyalty and commitment.
– The benefit of low capital costs allows them to adopt long-term business strategies or to exploit market niches, which are not sufficiently profitable for larger businesses.
– They own long-term perspectives, saving and reinvesting capital, and viewing the business as a legacy of heirs. Hence, pressure for short-term profit is reduced.
– Their attitude is inward looking. Decisions are based on emotions rather than commercial grounds.

Family System vs. Business System

Inward looking vs. Outward looking
Emotion based vs. Task based
Unconditional acceptance vs. Unemotional
Sharing vs. Reward performance
Lifetime membership vs. Perform or Leave
Averse to change vs. Embrace change
To nurture vs. To generate profits

Birth and Initial Expansion

Worldwide statistics show that the mortality rate among small and middle-size businesses is about 15 % at the end of the first year of existence, and 23 % after the second.

A newly created company demands a great deal of effort, time, energy, and devotion, just like a newborn baby. New companies have a propensity to have high operational costs and low profits, while the turnover is rather modest and still unpredictable.

The growth of the company depends on its promoter’s attitude. As the driving force of the company, he or she takes all the decisions and assumes all the economic responsibilities. As the company grows, more employees are hired in its dynamic team. Values like trustworthiness and loyalty are imparted as their belongingness with the company grows.

Growth and Complexity: Development Through Generations

A crucial period for a family business is during its expansion. There will come a stage when the family or existing management does not have either the skills or sufficient time to manage the business effectively. At a crucial time like this, external management should be introduced. In this stage, the promoter must delegate tasks, allow others to take over vital functions in the company, and hand over the power of decision-making on to others.

The typical stage of development for a family business, as it passes on from generation to generation, is when the founder passes the business on to his or her heirs. The founder must be prepared to gradually let go of his direct influence, in exchange for indirect influence through his leadership.

Maturity and Sibling Rivalry

As the business ‘matures’ and the promoter grows older, the next generation has to take over some of the responsibilities. During this shift, it is very vital that there is no conflict between siblings, as to who is awarded with what position in the business. However, primogeniture, the phenomenon of favoring the first born is often evident in big business families.

Conflict may arise from a parent’s wish to treat children equally. The founder has to then consider a fair distribution of property and the delegation of the management among all the heir’s, in such a way that the continuation of the company is not endangered.

The basic rule that should be followed is: what is good for the company is good for the family.

Principles of Managing a Family Business

1. Family business does not necessarily mean unprofessional business.
2. Accept emotions and personal relationships as unavoidable elements in the rational world of your company.
3. Accept the synchronicity of the family and business life cycle.
4. Keep family and business separate, whilst knowing that they are both sides of one coin.
5. Accept help in order to avoid blindness for family and business affairs.
6. Respect the loyalty of ‘non-family family’.
7. Give the company a chance.
8. Succession is a coin with two faces: hereditary succession and management succession.
9. Succession preferably implies a (mental) de-familiarization.
10. What is good for the company is good for the family.