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.
best cleaning company Highland Park ..No matter type of business you operate you've got to... Read More
You've been meaning to tend to the administration part of... Read More
Rule 15C211Under SEC Rule 15C211, a U.S. securities broker or... Read More
Where do you look for the appropriate alliance?One of the... Read More
Does your small business have a banking and credit card... Read More
There were only an estimated 1800 active franchisors in this... Read More
A successful joint venture marketing effort is the goal of... Read More
Cash flow. To stay in business, you've got to keep... Read More
One of the best marketing strategies a business or organization... Read More
"Order Now!" "Your Business Will Fail If You Don't Have... Read More
A reader of one of my online sessions asked should... Read More
So you want to get into the auto detailing business... Read More
Q: I'm curious. What is the dumbest business question you've... Read More
If you ask most small business owners what priority CRM... Read More
Setting priorities in your business? Your first job is to... Read More
In your small business debt collection laws will eventually become... Read More
Sometimes when you run a business you feel as lonely... Read More
You can provide affordable health care plans to your employees.... Read More
Hi, Charles...here, Your Cap and t-shirt guy From Texas. How... Read More
You know your prospects need what you sell. You know... Read More
What was your aim when you went into business for... Read More
All franchises must meet the legal definition of a franchise... Read More
As a practise gets larger & larger the associated problems... Read More
Your business is only as good as the number of... Read More
Think the best way to get more customers is to... Read More
high-end home cleaning Winnetka ..Providing high quality customer service is a must for any... Read More
Hi, Charles...here, Your Cap and t-shirt guy From Texas. How... Read More
Entrepreneurs are hardy stock. But sometimes hardiness can get you... Read More
Perhaps you are building a new home office or you... Read More
If you are looking for a way to own your... Read More
If you are a motorcycle detailer and need to expand... Read More
In the heavy equipment cleaning business you can make good... Read More
If you want to start a business in 2005, and... Read More
It is essential that you fully understand how the fuel... Read More
How many hours do you work a week? When was... Read More
We're birds of a feather, public relations and small business.... Read More
It appears the mini-blimp indoor theme and concept is making... Read More
The Federal Trade Commission decided to sit down and revamp... Read More
Everything starts with a business plan: If you don't have... Read More
Every business plan book tells you how the Executive Summary... Read More
Most pressure washing companies never look into some of the... Read More
The easiest way to lift profits is to cut the... Read More
Many self employed professionals find themselves overwhelmed, frustrated, and confused... Read More
It seems so long ago that I started my first... Read More
Those who are in the pressure washer business should not... Read More
Being a small or home-based business owner can be loads... Read More
Just when the entire state was kissing Wichita goodbye, economically... Read More
Car wash businesses are unique to other businesses. In fact... Read More
How to do itPeople skim through newspapers and magazines and... Read More
Many small businesses do quite well due to the blood,... Read More
Small Business |