Action Step 57: Explore Franchising on the Web Take an online franchising quiz at FranchiseHELP What are your results? Do you agree or disagree? Jump start your search with other sources Check out articles on what interests you Which franchises are hot? Which ones are growing the fastest? Where are the happy and profitable franchises? Do not get lost - keep a list of goods ideas Find a few franchises you are interested in and explore additional resources What did you learn? What surprised you?

Action Step 58: Franchise Information Packet Request info from franchisors that fit your needs Some packets are available online Some franchisors prequalify potential buyers before sending packets Study your desired franchise and their main competitors Summarize what you have learned Focus on the need for the product & its uniqueness What are the advantages of the franchise format? Beware of fads - look forward 5 to 10 years Start to formulate questions

Action Step 59: Visit a Franchise Exposition Look online for expos in your area Go to the expo and talk with exhibitors Learn what you can from sales presentations Attend free workshops Collect literature and select franchises worth a second look Usually small and new franchisors exhibit at shows Salespeople work on commission - do not be persuaded; you are not yet ready to buy

Action Step 60: Investigate Franchisors and Franchisees Franchisors - interview at least three: What is included in the franchise fee? Terms of the agreement? Top performers vs. lower performers? Failing franchisees? Long-term goals and plans? Social media? Training & services? Royalty fees & assessments? Terminated franchisees? Territories? Turnover rate? Major changes? Advertising & Promotion? Skills needs? Opportunities to own multiple franchises? Franchisees - as many as possible and a variety of types: What do you wish you had known before you purchased? Major problems? Happy with support & training? Helpfulness of franchisor? What would you change if you could? Territory issues? Strongest competitors? Employees? Turnover? How many hours a week do you work - first year and now? What does it take to be successful? Start-up costs? Time to profitability? Is income what you anticipated? Would you do it again?

Action Step 61: Summarize Your Insights & Research What do you like about franchising? What do you dislike about franchising? What additional information do you need? Which franchise if for you? Why? Can you make the money you desire from one franchise? If not, could multiple locations provide it? What will you like most & least about owning this franchise? Can you raise the funds you need? Will you like running the business? Are you still in love with the idea of being your own boss? Where do you see this franchisor in five years? Where do you see yourself and this franchise in five years? Will you be able to easily sell this business? Which franchise if for you? Why? Will you be able to hire a manager if desired? Can you grow in this business? How responsive has the franchisor been to changes in the marketplace? Are you creating wealth or just replacing your job? What questions still remain?

Action Step 62: Write a Draft Cover Letter Address your letter to a specific person who can help your business Be brief State the reason you are sending the plan Purpose is to open the door and prepare the way for negotiations Tone should be confident and slightly formal

Action Step 63: Write a Draft Executive Summary Imagine you have 3 -5 minute to explain your Business Venture to a stranger This gives you an idea of the info you need in your executive summary Answer the following questions: What is the problem? Why is your product/service the correct solution? Who is the target market & has the product/service been tested? Where will you reach you target market? When will you launch the product/service? How will you make money? Practice explaining your venture When you are satisfied, type up your summary Make the reader exclaim, "Tell me more!"

Action Step 64: Describe Your Company, Product, and Services Excite your reader about your business If this is a start-up: Explain your product or service fully Mention numbers whenever you can If this is an on-going business: Your financial records will substantiate your need for money Keep the words flowing - you need to convince the reader to continue reading

Action Step 65: Describe The Market and Target Customers & Action Step 66: Describe Competitors Bring all your marketing research into this section Wow your reader with a picture of your Target Customer just waiting for your product Profile businesses that compete with you directly What are your competitors' strengths & weaknesses? What can you learn from them? What makes your product unique in the eyes of your customer? How are you going to implement your competitive positioning strategy? Provide back-up research in the appendix

Action Step 67: Describe Marketing Strategy Work Through the Four P's Develop the thrust of your marketing strategy What techniques will reap the most costeffective response? Encourage repeat business and positive word of mouth? Start with what your Target Customers see as a good value Develop your marketing mix (4 P's + participation) Prepare back-up data for the appendix

Action Step 68: Show Off Your Facility, Location and Operations Lenders can visit & see what's going on Gives you an opportunity to impress your banker on your own turf Persuade potential lenders to visit with photographs, diagrams & illustrations If you have a manufacturing facility discuss the selection process & operating costs

Action Step 69: Introduce Your Management Team and Personnel Highlight the positive qualities of your team Focus on accomplishments, education, training, flexibility, imagination, tenacity Include experience and make sure your team has balance Describe the people you need as employees and what they will cost Provide short resumes for each major player

Action Step 70: Project Your Income Statement and Cash Flow & Action Step 71: Complete Your Balance Sheet You are looking for net profit so figure your sales and cost of goods sold. The difference is your gross margin Subtract your other expenses from gross margin to get profit before taxes. Subtract taxes to arrive at net profit after tax. The income statement and cash-flow statement can be combined into one or be shown as two separate statements. A balance sheet is a snapshot of your financial position at a certain point in time. Add your assets and divide them into current and fixed. Depreciate fixed assets that wear out and show their net value. Add up and divide your liabilities into current and long-term. Subtract liabilities from assets. You now have a picture of your net worth. Are you in the red or in the black?