comprehensive business plan when opening, converting or purchasing a Winkworth office, potential franchisees are also required to produce a three-year financial forecast." />
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Financial forecasting in franchising

As well as producing a comprehensive business plan when opening, converting or purchasing a Winkworth office, potential franchisees are also required to produce a three-year financial forecast.

The new franchising team at Winkworth issue excel format financial forecast templates to progressing potential franchisees once they are satisfied the individual has passed the initial due diligence checks.

These forecasts are broken down into sub sections which include Revenue, Direct Costs, Overheads and Marketing.


This is where you input your full monthly income forecast based on the services your office is going to offer. Sales units and income figures, lettings units and income figures, management income and any other services you may profit from offering, for example financial services.

“The market is tough at the moment with properties taking longer to sell, so I’m advising delaying sales income for a start up office to the 6-month mark, whereas two years ago we were looking at the third or fourth-month mark,” explains James Campbell, New Franchising manager.

“We see a handful of franchisees who are dubious about conducting lettings and management when they first join the network,” adds Gina Piper, Operations Manager. “We now insist that these new offices do offer lettings from the beginning however as this is a paramount aspect of initial cashflow.”

Direct Costs

This section is where you input salaries, national insurance and commissions. The new franchising team predominantly sees an initial staff structure of three members, made up of a sales manager, a lettings manager and an administrator when a new Winkworth office opens. You should look to increase staff members, and therefore monthly direct costs towards the end of year one or beginning of year two. This section should also be used to calculate and deduct the Winkworth fee which is 8% of all sales and lettings revenue.

Overheads and Marketing

The Overheads section makes up the main body of the financial forecasting and should include all monthly outgoings your office is going to incur, from rent, rates and water to printing, stationery, postage and cleaning.

This section will also include a full marketing breakdown. As is widely known, marketing your business at the beginning of a new venture is paramount to its initial success and therefore more money should be invested from the offset with then a reduced monthly cost from month three. After the eight month or so mark, Winkworth normally sees the new offices heavily investing in marketing on a quarterly on seasonal basis. The marketing section should include, but isn’t limited to, monthly cost of Direct Mail, Canvassing, Digital lead generation and the fees for the major portals such as Rightmove, Zoopla and On The Market. The marketing team at Winkworth can recommend good suppliers which will reduce costs and have competitively negotiated group deals with the portals, also keeping costs lower than that of an independent estate agent.

If a potential franchisee is seeking initial purchase or cash flow funding from one of the major franchise lenders such as HSBC or Natwest, the banks’ brokers will request a comprehensive three-year cashflow exactly like the one that Winkworth has tailored for its franchisees. The new franchising team can assist with numbers and revenue forecasts for potential income however, “It’s always better to be more pessimistic than optimistic,” explains James Campbell. “The banks don’t like it when you don’t hit expected revenue, especially in year two.”

If you’re interested in becoming a new franchisee and would like to know more about compiling a comprehensive financial forecast and business plan then get in touch with the new franchising department today for a confidential chat.

Interested in knowing more about owning a Winkworth office?
Contact our New Franchising team

James Campbell | Gina Piper | 020 7355 0200

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