Have you chosen your training center franchise? You now need to get financing to realize your project. In order to convince bankers in particular, you need to prepare a business plan for this: here are 5 steps to write the business plan of your franchise training organization.
Present the team and the genesis of the project
The first part of a business plan is always a presentation of the team and the origin of the project, for a training organization as for any other company. After all, bankers first support a project leader. They need to have confidence, feel the “man/project” fit†
So this presentation directly depends on the type of franchise training organization you want to open:
- For a franchise business schoolneed to show your credentials with an experience like profit center manager and manager, ideally from a large structure. A full education (ideally engineering or business school) is undeniably an additional asset.
- For a B2B training organization targeted coaching and training in management, marketing strategy and commercial strategy, Ideally you have experience as a senior executive, manager, sales director, marketing director or other† And this mainly because these experiences will be essential to convince your prospects later on.
- For a language training organization, especially English courses, it is obvious that: Teaching experience is a big plus† However, experience as an executive abroad or committed to international work is also beneficial for opening an English school as a franchise.
The genesis of the project is also important: what was the impetus for wanting to open a franchise training organization? How did you choose your training center franchise? What were the stages of your journey before signing your contract? Sincerity and clarity are the keywords here. But as you can see, here you are laying the groundwork for seducing a banker by demonstrating that you have thought about your project and that you have already convinced a brand to integrate you into its network. The game is almost over.
Presenting market research for your training organization
Market research is the other big part of your franchise training center business plan.† And this, especially since your brand’s sole obligation is to give you a general market situation at the national level, not a local market study. This investigation is an obligation of the franchisee, not the franchisor†
In the field of training organisation, this market research will again depend on the type of establishment you wish to set up:
- For a business school it will be necessary that the municipality of residence does not have one or that the agglomeration is of sufficient importance to justify the opening of a new business school in franchise† Among its 300,000 inhabitants (or 15,000 students), it seems an illusion to open a second business school. On the other hand, it may be interesting to look at the orientation of young high school graduates in a medium-sized city, whether close to or far from a major conurbation, to determine the relevance of opening a franchise business school there. After all, such a training organization can be profitable from 54 students.
- For a language training center it is necessary to:study the number of competing branches, by integrating educational support centers and reporting on them to the population, and in particular to the number of middle and high school students, the preferred targets of these types of institutions. But according to the brand you can also focus your market research on the companies that are present in the catchment areawhich will also allow you to lay the foundation for your business model, which will be explained later.
- For an exclusive B2B training center (coaching and training), you should of course study the competition, but also increase both the number of managers and the number of employees, to classify them by degree level, contract types, and CSP. This allows you to more accurately determine the potential of your company.
Uncovering the franchise’s marketing and communications strategy
At franchise, marketing strategy is generally determined by the concept from the brand you use to create your training center. Price positioning, objectives (individuals, professionals or both), brand image, etc. : all these elements are written directly into the concept.
That’s the reason this part of the business plan for a training organization was written in collaboration with the head of the networkwhen it is not simply composed of elements provided directly by the network header to present its concept.
In contrast, the communication strategy at the local level is a franchisee’s prerogative† However, if it sometimes happens that certain brands take care of it themselves, it is better to go deeper into it.
Indeed, it is the communication strategy at the local level that will largely determine the start of the activity, the acquisition of the first customers and their loyalty.
Prescribers, communication targeting, media examples, distribution channels (directly in schools, companies or at home or just at the training organization), etc. are all elements that should be presented in the business plan.
Demonstrate the economic model and financial forecasts
The business model answers the question: “How do I make money”† However, with a training center franchise, it again depends on the concept, on the board. This part of the business plan is therefore drawn up in close collaboration with the head of the network.
On the other hand, it is on the basis of this economic model on the one hand, but also of the market study that you have carried out on the other, that you can develop your financial forecasts. These are therefore specific to each project to create a franchise training center.
That said, especially in franchises that already have a substantial network, these predictions can be refined based on actual data from other branches in the network. While for an average company the forecasts are based on totally hypothetical scenarios, in franchise they can be quite accurate. This is a significant advantage.
Write the summary
When developing a business plan, the last step is to write the first part! In reality, the executive summary is the introductory summary of your franchise training center business plan† It is he who should summarize in a concise and clear way the main points of your plan and above all make your reader want to immerse themselves in reading your document. You have to tease, give the essential, but also make you want to know more†