Page 109 - Business Plans that Work A Guide for Small Business

100 • Business Plans that Work

Their communica-
tions strategy is discussed Communications Strategy
in very broad terms. It is
often useful to include
a schedule detailing the Our company cargo van is one of our best sources of
various types of communi- advertising. We invest in full-body, brightly colored graphics
cations, where those com-
munications will appear, and for our vehicles to maximize their visibility as they make loops
how much it will cost to around campus 40 hours or more each week (Exhibit 4.2).
place them. This advertising
expense table then feeds This consistent, tangible presence around campus is critical
directly into the pro forma to getting the word out and helping to bolster the “everyone
financials.
else is doing it” mentality.
College students are We also use promotions, offering laundry packages for
a particularly easy target giveaways as prizes at local events, and incentivizing our own
for promotions because
they have consistent move- customers via credits and discounts to recruit friends to
in days and predictable try the service.
annual schedules.
Our centralized Web site will be tuned (via search engine
Again, a table showing optimization) to appear on the first page of laundry-related
these expected expenses searches at each campus, and we will invest in Web marketing
would lead to stronger
financial projections and through Google Adwords and Facebook. We will also pursue
provide a visual catch-point.
customers via Twitter marketing and be aggressive in using
all new communications technologies as they arise.
Since Lazybones has
two different customers, 4.2 Franchise Sales
it has a separate section
discussing franchisees.
Franchise Pricing
Benchmarking the
franchise fee in a table
would add credibility to In return for all these benefits, franchisees will need to make
their claim and also com-
municate how the fee an upfront investment of approximately $125,000. This is
might change over time. toward the low end of required franchise investments
For instance, as Lazybones
becomes a stronger brand across the industry. We will connect franchisees with
in the marketplace, we potential sources to get the majority of this financed. Part
would expect it to raise its
franchise fee in accordance of the initial investment is a franchise fee of $35,000. This is
with other strongly branded
franchisors. slightly above the industry average of $25,000, but what will
matter most for a franchisee is the total initial set-up cost,
This suggests
that Lazybones may be which is lower than the industry average. Our research
underpricing its franchise. indicates we are offering substantially more benefits to
Typically, the more benefits
you offer, the higher your franchisees than our competitors who charge lower fees.
price. A table of benchmark Furthermore, unlike many competitors, we do not require
franchisors would help
place this in context and our franchisees to purchase any specific equipment or
make it easier to validate
Lazybones pricing. supplies from us.
This is a double-edged
sword. Required product
purchase usually results from
national purchasing accounts
that embed competitive
advantage because you are
providing your franchisees
needed supplies at a lower
price than they could secure
on their own.