Page 94 - Business Plans that Work A Guide for Small Business

Company and Product Description: Selling Your Vision • 85

Exhibit 3.2 Venn Diagram of Ideal Lazybones Franchise Buyers Diagrams are an excellent
way to summarize the prose
and add depth to a plan. From
this graphic, we get a glimpse
of another ideal demographic,
geographic proximity to the
campus of operation.

Our franchises will be positioned on the lower end of the A sophisticated investor
will flag this statement and
initial investment spectrum (Exhibit 3.3), and we will offer look at both capital require-
financing to help us target franchisees looking for a business ment impact and increased
risk in the deal.
that will require more hard work than capital.
This perceptual
map gives a sense of how
Lazybones will compete for
franchisees. It is looking for
individuals who have lower in-
come and are seeking a lower
initial investment. Buying and
establishing a McDonald’s fran-
chise, for instance, typically runs
over $2 million. McDonald’s
requires franchisees to have
Exhibit 3.3 Lazybones Franchise Positioning Map $250,000 cash for an individual
restaurant. Real estate invest-
ment and equipment leases
can add another $2 million,
often financed.
Lazybones might be advised to
add more service franchises to
the comparables. Service Mas-
ter would be a good example.