Page 60 - Business Plans that Work A Guide for Small Business

Getting Started • 51

This shows that Lazy-
This is accomplished with centralized Web technologies, bones has strong systems
support from experienced executives/owners, and to support potential fran-
chisees. This underscores
proprietary business systems that have been being developed, the company’s ability to get
tested, and tweaked for 15 years. Thanks to the current to a national scale.
recession, hundreds of thousands of highly motivated,
high-energy individuals who would thrive running a Lazybones
franchise are seeking the job security that running their own This begins to set
business could provide—and franchising is the most common milestone growth objec-
and least risky path to running their own business. Lazybones tives that will manage inves-
tor relations and create a
will offer a lucrative, low-initial-investment opportunity to pathway to increased valua-
individuals eager to own their piece of the American Dream. tion for multiple rounds of
investment.
By opening four more company stores while aggressively
selling franchises, the company will expand across the
United States, growing its revenues sixfold over five years
while increasing its already high profit margins.

Company Performance

Lazybones’s four locations generated 2008 revenues
This establishes
of ~$1.2 million: laundry and dry cleaning services accounted multiple revenue streams.
for roughly two-thirds and summer storage and shipping the
remaining third.
Strong cash flow
Receiving advance payments from parents for a semesters’ characteristics are appeal-
services keeps the Lazybones cash flows and balance sheet ing to investors, especially
clean and strong. angels.
Competition exists mainly in the form of small localized Identifies the
fragmented nature of the
businesses. industry. Mostly mom-and-
A few of these companies offer competing services on pop stores, which suggests
that a professionalized
multiple campuses but none at more than 10 locations. operation should have a
Over a decade of operations at the Madison, Wisconsin, competitive advantage.
and Syracuse, New York, locations has enabled Lazybones
to develop competitive advantages that allow the company Identifies national
to outpace these competitors. All of this experience has also market potential across the
provided extensive information about what works in the country.
business model, so that operations systems and manuals
already exist in easily transferable forms. All of these factors
have prepared Lazybones for rapid expansion into the more
than 1,600 viable campus locations.
Since Lazybones has
a 15-year operating history,
the team section focuses on
the newest team member.
Team What is missing is someone
with franchising experience.
Joel Pedlikin will join current founding partner Dan Hermann While Dan and Reg can
and founding partner Reg Mathelier to round out the company’s operate a small chain, it isn’t
necessarily clear that they
leadership team. Joel’s 10 years of executive experience with can manage as a franchisor.