Helping businesses get off to the right start
Starting state
Global franchisor provides franchise opportunities in the USA, the Middle East, and Asia, with plans to expand to the EU. The franchise sales model relies on creating interest from their target demographic through an omni channel marketing approach that includes digital marketing, franchise fairs and exhibitions.
Company needs
Once a potential franchisee is identified, the business must undertake a business planning process. A communication gap existed here, and the business lacked a straight forward way to present a very complex offer. They needed a method for estimating profit and loss projections while taking into account a variety of variables. Those variables include the size of the facility, thousands of possible equipment items, processing capacity of the location, estimation of the market size and possible sales prices of services.
Results
We created an application with FileMaker that allowed us to factor in this wide array of variables and simulate the conditions of an upcoming launch. This allowed for the estimation of the required initial capital and levels of fixed and variable costs. The system also provides seasonal forecasting as well as the creation of pro-forma income statements with a variety of scenarios.
Created Software
This presentation was then formatted to be able to provide a dedicated mobile software that allows for user-friendly accessibility. With this development, users can virtually construct an establishment of any size, providing a quick definition of the appropriate equipment along with the visualization of the methods of its assembly and determination of the required stocking, taking into account the import fees required for the country in question.
Furthermore, we made certain that this system allows for the estimating of operating costs, such as materials and labor. By simulating sales in various distribution channels, it allows future franchisees to take into account the seasonality of any characteristic. The output is a pro-forma profit and loss account, which can be further modified, enabling the analysis of various scenarios. Now, the internal franchise department has an efficient, user-friendly way to present comprehensive business projections, creating a more accurate picture of the potential business, setting each location up for success.
