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Operations and Development: Execution • 115

Lazybones Development Plan

Section 6: DeVelopMent plan
This is a bit of a
hedge. The entrepreneurs
might consider the
Our five-year goals for Lazybones are as follows: following:
“To achieve X number of
stores to create a national
• To provide high-quality services to U.S. college students. While network of branded opera-
we expect these services to be laundry and storage, we may tions with economies of
scale and market leader-
provide additional services as well. ship.” Being specific adds
credibility to the plan
• To reach sufficient revenue levels and a sufficient number of
franchises that potential acquirers see it as an established, solid business.
• To grow the company to the point where its net income can easily support the
three principal executives into the foreseeable future.
Although Lazybones
The Lazybones development timeline has been crafted to isn’t seeking outside
meet these goals. It begins with opening four new company stores capital, the last bullet point
raises a red flag for inves-
over the first year. During that first year we create a detailed tors. This statement doesn’t
franchising plan, culminating in the sale and opening of the first prioritize my investment as
the priority, but the princi-
franchises at the beginning of year two. Additional franchises are pals’ well-being.
opened in January, May, or September of each subsequent year.
Lazybones plans to have eight company stores and 60 franchises within five years.

Exhibit 6.1 Development Timeline

parameters Year 1 Year 2 Year 3 Year 4 Year 5
Number of new owned locations 4 0 0 0 0
Total number of owned locations 8 8 8 8 8
Number of new franchised 0 5 10 20 25
locations
Total number of franchised 0 5 15 35 60
locations
Franchise fee $35,000 $35,000 $35,000 $35,000 $35,000
Franchise revenue % 7 7 7 7 7

Most timelines are
represented as Gantt
charts, which allow finer-
grained detailing of neces-
sary activities. This timeline
is rather limited in what it
communicates. The last two
lines are not adding any
new information other than
to say that the franchise
fee and royalty will remain
the same throughout the
period. As such, they can be
eliminated.