(Add to Favorites | View All Articles | Resource Directory)
|
|
|
Effectively Completing the Operations Plan Section of Your Business Plan
The Operations Plan is a critical component of any business plan as it presents the Company's action plan for executing its vision. The Operations Plan must detail 1) the processes that are performed to serve customers every day (short-term processes) and 2) the overall business milestones that the company must attain to be successful (long-term processes). Everyday Processes (Short-Term Processes) Every company has processes to provide its customers with products and services. For instance, Wal Mart has a unique distribution system to effectively move products from its warehouses to its stores, and finally to its customers' homes. Technology products manufacturers have processes to convert raw materials into finished products. And service-oriented businesses have processes to identify new areas of customer interest, to continually update service features, etc. The processes that a company uses to serve its customers are what transform a business plan from concept to reality. Anyone can have a concept. And more importantly, investors do not invest in concepts -- they invest in reality. Reality is proving that the management team can execute the concept better than anyone else, and the Operations Plan is where the plan proves this by detailing key operational processes. Business Milestones (Long-Term Processes) The second piece of the Operations Plan is proving that the team will execute the long-term company vision. This is best presented as a chart. On the left side, there should be a list of the key milestones that the Company must reach, and on the right, the target date for achieving them. Sample milestones include expected dates when: - New products and services will be introduced to the marketplace - Revenue milestones will be attained (e.g., date when sales will surpass million dollar mark) - Key partnerships will be executed - Key customer contracts will be secured - Key financial events will occur (future funding rounds, IPO, etc.) - Key employees will be hired Additional text should be used, where necessary, to support the projections laid out in the chart. The milestone projections presented in the Operations Plan must be consistent with the projections in the Financial Plan. In both areas, it is important to be aggressive but credible. Presenting a plan in which the company grows too quickly will show the naivet� of the management team, while presenting too conservative a growth plan will often fail to excite the potential investor who will require a high rate of return over a relatively short time period. As President of Growthink Business Plans, Dave Lavinsky has helped the company become one of the premier business planning firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.
MORE RESOURCES: News provided by Yahoo! News and Google News Small Business Column: Time for Irish SMEs to take advantage Judge tells American Express it can't bully small biz - Crain's New York Business 'Small Business Basics Series' begins in March Pair launch equity crowdfunding platform for small-biz owners - Crain's Detroit Business Fla. lawmakers propose small biz sales tax holiday - First Coast News Decline of small business hurts recovery, jobs growth Investors leading surge on small-biz loans - Insurance News Net TD Bank Small Business Pulse Check Finds 70 Percent of New York City Businesses Optimistic about 2015 Opportunities Stratford Library offers seminar series for small business owners GST red tape hurting business, economy |
|
|
|
RELATED ARTICLES
Tell Me a Story: A Simple But Powerful Tool to Build Your Business Everyone loves a good story. Whether it's the story of your vacation to an exotic place, the story of how you met your spouse, or the story of your small business, people get drawn in and feel involved. Perceptions may be more important than the facts, themselves When small businesses fail, the wreckage is often assigned to undercapitalization, among other mistakes. Seldom is failure attributed to a lack of effective communications that might have modified the behavior of sales prospects in a positive way, thus averting bankruptcy. Offering free information may stimulate your business You've heard it before; we're living in an information age. The business world is no longer driven by tangible products but on information and ideas. Perfecting Your Pitch Why should you describe your business to others in 5 to 10 seconds?How long do you think you have to get anyone's attention? 5 minutes? 2 minutes? 30 seconds? It is actually 10 seconds. I know it does not seem like a long period of time but you will be amazed what you can say in 10 seconds. The Truth About Government Grants for Your Business Free money! Receive up to $25,000 that never has to be paid back -- Guaranteed! Get a grant to start your own business today!If you're a small business owner, or you've always dreamed of starting your own business, you've probably run across ads like these. Companies that "guarantee" you'll get a grant to start your own business that never has to be paid back. Business Relationships Defined What makes a business relationship?What really makes a business relationship? This may be very hard to define as it goes beyond just meeting the person and chatting about something you have in common. A relationship is developed over a period of time and usually does not happen instantly. Should I Franchise or Not? A reader of one of my online sessions asked should he franchise his business or not. He had set up a service business and was getting ready to expand and wanted to know if franchising was a good potential strategy for this. You Are Invited Business card size works well for invitations to special events.What do you visualize when you think about invitations? More than likely you are thinking about a wedding or a party. How to Start Home Based Travel Businesses Home based travel businesses are no longer the wave of the future. Home travel businesses are the hot trend right now. Find Some Sample Payroll Check Stubs on the Net for Easy Reference Starting a business? For many people, the bravery to venture out on your own is the ultimate dream, you're your own boss, you make your own time, and your dreams of making it big in the independent business lives on. But don't forget there are many responsibilities. Solving the Late Paying Customer Blues Nothing can drive a business down faster than customers who don't pay their bills as agreed. When you sell to customers on credit you are making an agreement with them. Small Business Owners - Form a Relationship with Your Bank Manager It's just like a marriageTo expect a bank manager or officer to play such close attention to your account that he (or she) knows when you intend to deposit money and to know when to hold back a cheque is a hopeless dream.He has neither the time nor the resources, and you can complain until your blue in the face but, in the end, you have the sole responsibility to manage your bank account. Web Based CRM Systems: Get Mobile; Get Results Everyday more web based companies enter the business scene. The low initial investment, potentially high revenue, and convenience of owning and operating a business from your home PC or laptop is enticing an ever-increasing number of entrepreneurs to try their hand at e-business. How to Start an Office Support Service Office support services can range from basic data entry to a fully-staffed office handling all the details of a client's business.An office support service company can start very small, offering only a limited selection of services and expanding as you gain the capacity to do so. The Perfect Mission Statement One way to determine your companies mission statement is based on a general overview of the company. Some important questions are asked like: Why does the company exist and what kind of business is it in? Is there a particular market or niche that it will concentrate upon? How will the company be distinctive in its business methods? Once these questions are answered, the focus moves to the accomplishment of these broadly expressed objectives. Pressure Washing Market Niche Those who are in the pressure washer business should not neglect the Hotel exterior cleaning niche. Many five-star hotels spend significant dollars in making sure that their grounds are meticulously cleaned. Provide Affordable Health Care To Employees At Little To No Cost To You You can provide affordable health care plans to your employees. If you feel overwhelmed by health care plan costs, you may be able to achieve far more than you believe. Mobile Detailing VS Fixed Site Detailers Mobile detailers will find themselves with lots of competition even if they do not see them around town. There are also many fixed site detailers who specialize in wholesale detailing or the retail detail or both. For your business to grow, you must learn business management The American system of business management has been admired and emulated around the world. This system is characteristic of two traits in the American psyche: (1) enthusiasm for the future and making things better, and (2) an openness and willingness to change in order to achieve that end. Failure is not an option You may find this Newsletter a little long winded but it's for a good cause: It's all designed for Your Success!One of my favorite quotes is by Alfred d'Souza. It goes like this:"For a long time it had seemed to me that life was about to begin, real life.
|
| Home | Site Map | Privacy Statement | More Articles |
| © 2006 |