Strategic planning for franchisees

Strategic planning. You’ve heard the term before, but what does it actually mean? And how does it apply to entrepreneurs? Put simply, the purpose of strategic planning is to establish a set of goals for your business or endeavor and then put a plan in place to reach those goals. Doing so will help you figure out a long-term plan and what your priorities should be.

When you decide to set out on your own as a franchise owner, you are making the decision to create something new. And you need to be prepared to embrace the risks associated with doing so. That’s why it is critically important to identify exactly what those risks are and what you need to do to mitigate them.

As your business grows, your operation becomes more complex. You will need to formulate a strategy that keeps up with the sophistication of your growing organization. Your strategic plan should be formulated in such a way as to sustain growth, establish a leadership structure, and gather the resources you need to keep your business healthy and growing.

Part of your strategic plan should involve data analysis. Without qualified and verifiable information about your business, you won’t have a full understanding of internal operations and how they interact with an evolving marketplace. With so much data available to business owners and entrepreneurs, it is important that you utilize it to make sound business decisions.

It is also important to understand that a strategic plan is not the same as a business plan. Business plans focus on the day-to-day of your business operation. It should focus on the nuts and bolts of your company. Conversely, your strategic plan should consider the broader and more long-term needs and goals of your business. It’s like a chess game. You’ve got to be thinking several moves ahead. Still, your strategic plan and business plan should complement one another.

In the end, there are three specific questions you must ask yourself as you formulate your strategic plan.

1. What is the current state of your operation?
2. Where do you want to take it in the long-term?
3. What do you need in order to get there?

Make sure you balance the practical realities of your location and marketplace against your long-term plans. In other words, your strategic plan needs to be realistic and actionable. Of course, your corporate organization is also here to help you with these plans. But this a bit of insight and planning, you’ll be well on your way. Happy planning!