Pre-Start Up Business Plan and Risk Assessment
Client: New Franchisee for Aussie Farmers Direct
Project: Pre-Start Up Business Plan and Risk Assessment
Situation
Our client was considering buying a franchise opportunity. He had not run a business before and wanted some help to make sure that the business opportunity would deliver as advised by the Master Franchisor, and that he knew about the risks before he actually parted with his investment monies.
Task
Our role in this assignment was to help the client to:
- Help the Franchisee to understand his Business Leader's Integrity & Values Profile.
- Think through and document how the business was going to make money
- Understand the key factors which allow the business to profitable
- Understand the Break-Even Analysis, so that our client knows how many units he has to sell to breakeven, and he knows the knock on impact on the management needed for marketing and customer deliver
- Understand the risks in the business model, so that the client could plan accordingly.
Outcome
- A Business Leader's Integrity & Values Profile Completed - which addressed how the Franchisee could consider modifying his behaviours to give himself a higher chance of success
- A Business Plan written and supported by a working cash flow forecast
- The Business risks much better understood
"I needed help to better understand the risk in starting a new franchise business. I decided that a business plan would help so that I would know how I was going to make money even before I start the business.
I found that this is much more than a writing process. It is a thinking process - and it is hard.
After 4 weeks, I now know how much investment I need, what my 1, 2 and 3 year sales goals need to be for me to make the financial return that I am looking for, how to have more than just a job that pays a salary, what I must do to build a machine that is going to generate cash. I also know where the risks are and what I need to do about them before they jump out and bite me where it hurts .... in the pocket.
The process so far has taken much effort - but I am exceedingly happy with the results."
Nick Bentley, MD
Franchisee – Aussie Farmers Direct
