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When a plan comes together

Written by Phil Archer on Thursday, 03 February 2022. Posted in Finance

Without a goal and clear strategic idea of where your business is going, you may never get there. So, with 2022 just starting it’s time to start planning for the success right now.

When a plan comes together

Without a goal and clear strategic idea of where your business is going, you may never get there.  So, with 2022 just starting it’s time to start planning for the success right now.

Managing a successful franchise uses a whole different skill set than the normal day-to-day work. Understanding the figures, forecasts, and careful business planning can be the difference to what makes a successful franchisee and what does not. 

Whether it be to expand, grown, buy another territory, to secure business borrowing the banks require a detailed and well written business plan. This will set out your future goals, strategy, and how you will reach those objectives. The cashflow, budgets, projections as well as your SWOT analysis will also need to be shown. 

It is important to make sure the business plan is achievable. We all remember they very awkward ‘Apprentice’ episode where the contestant’s business plans are ripped apart for not being realistic. There should be detailed milestones, when and how the company can expand, as well as an accurate projection of when the money starts to come in. A well thought out plan helps to avert the risk for the business owner, as well being essential for the lender the evaluate the project. 

A great starting point got the plan is to analyse existing figures. If the project is for expanding, then making sure all accounts are fully up to date is crucial. However, as a new start franchise support from the franchisor is key. Engaging with a franchise specialist and independent business planning service, such as d&t, can really help take the burden of this away. 

The KPI’s, or key performance indicators are an essential part of business planning. They are an effective way to drive success in a business, and when examined and addressed correctly they can even help to turn a once failing business back around. So, it is an excellent idea to gather a list of your KPI’s and work through and monitor each. 

To get a good idea of how the business is performing at a high level, monthly turnover, cost of sales, and gross profit are always a good start for KPI’s. A way to support this larger KPI’s is to look at KPI’s that will help monitor each on a smaller scale. For example, when looking at turnover you may break it down to what you need to do to achieve that, for example number of new customers, and activity to drive that figure. 

Part of business planning should also involve looking at strengths, weaknesses, opportunities, and threats – a SWOT analysis. With the global pandemic and Brexit still wreaking havoc there is plenty to consider here. This can also be a good starting point if disaster does strike again. 

Over the past two years we have learnt that anything can happen. So whatever 2022 has in store, and whether you are looking to start up a franchise or expand, you will benefit from a plan tailored to your business. At d&t we offer help with business planning with a focus on adding value not just numbers, so if you are keen to reach your goals in 2022, feel free to give us a call.  We love it when a plan comes together!

About the Author

Phil Archer

Phil Archer

Phillip Archer is Head of Commercial at award winning accountancy firm d&t who have worked with over 100 franchise networks and over 2,000 franchisees. Previous experience working within the finance industry in some very well known house hold names , paired with his current role, Phil has the tools to help franchisors and franchisees alike. With the variety of services available at d&t Phil has helped franchise brands to get funding for their franchisees and increase franchise efficiency through expert accountancy advice.

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