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 growthink business plans. 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.
custom home cleaning Lincolnshire ..Take advantage of world politics today and start your own... Read More
Want your small business to flip instead of flop?! Statistically... Read More
As a teenager I worked for my father's small business.... Read More
Your on-line success is based on your efforts and yours... Read More
I agree that knowledge should be free, but the next... Read More
Most folks in the pressure washing business are happier to... Read More
There are many choices when thinking about a small business... Read More
I love lists. I make them for everything. And I'm... Read More
You are probably hard at work promoting your business (and... Read More
When starting a business, you have to determine the method... Read More
Franchising has made the world look really small. The well... Read More
Great question!Freeing your time is an indisputably key element in... Read More
Many investors and business ethics professionals are calling for more... Read More
As you reflect on this year and prepare for next... Read More
Business Process Automation or BPA for short. This was a... Read More
Your grandfather probably told you to "learn something new everyday".... Read More
Pity parties are nothing new. In fact, we do it... Read More
Pardon my enthusiasm, but a large part of your small... Read More
Why are Chambers a good launching pad?Chambers provide you with... Read More
How far can you go based on your relationship with... Read More
Looking for ways to boost your cash flow? As a... Read More
Treat your business as a serious, full-time business and be... Read More
Like most regulatory bodies in the United States, the Federal... Read More
We all know how glorious those first warm days of... Read More
The FTC, Federal Trade Commission, is considering modifying the franchise... Read More
move in cleaning service Glencoe ..What's your job profitability? Do you know?Many business owners are... Read More
Nothing can drive a business down faster than customers who... Read More
In franchising an individual desirous of their own business will... Read More
In many industries, image is one of the last things... Read More
Every business starts with an idea or a dream. To... Read More
Quality control in franchising companies is paramount and all franchising... Read More
As the owner or an employee of a small-to medium-sized... Read More
Purchasing a franchise has become one of the most popular... Read More
Owning a small business in Wichita, KS might not be... Read More
"What do you do?" It just might be one of... Read More
Don't let your customer satisfaction research initiative collect dust on... Read More
Since you own a business you probably have liability insurance... Read More
You can't imagine how many people ask me how I... Read More
It seems so long ago that I started my first... Read More
Fuel prices these days are quite high and they take... Read More
If you are just starting your business, or if you... Read More
Many have not experienced a fire up close. One year... Read More
The Federal Trade Commission out of the blue decide in... Read More
When does your ego get in the way?Let's go back... Read More
What types of companies do you want to align yourself... Read More
Summer is a time for the outdoors, for that well-deserved... Read More
Franchisor expansion policies are not as simple as one might... Read More
"Inch by inch, row by row...that's the way my garden... Read More
It is most fascinating to study how entrepreneurs spot opportunity... Read More
Essentially there are 5 tremendously powerful methods to make money... Read More
Small Business |