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.
no-contract cleaning service Des Plaines ..You may be in Mail Order, Direct Mail, or you... Read More
There are many potential niches for pressure washing companies that... Read More
As I am preparing for my attendance to the CoachVille's... Read More
If you are looking for a franchise opportunity, the choice... Read More
Want your small business to flip instead of flop?! Statistically... Read More
Commonly folks have asked me what the technical difference is... Read More
Just recently, I took a break and caught "The Return... Read More
For really tough boat hull cleaning you will need to... Read More
The Federal Trade Commission out of the blue decide in... Read More
If you are a non-operator owner of many work trucks,... Read More
A solopreneur I know disappears from my radar screen for... Read More
If you're just ramping up your small business email newsletter,... Read More
It seems so long ago that I started my first... Read More
Ok, so next to the taxman, your company payroll department... Read More
Summer is a time for the outdoors, for that well-deserved... Read More
If you are a motorcycle detailer and need to expand... Read More
When small businesses fail, the wreckage is often assigned to... Read More
1. TargetYou are not all things to all people. Decide... Read More
"The way to develop self-confidence is to do the thing... Read More
Work smarter, not harderWhat is one of the best ways... Read More
Many of our nations 400,000 franchisees run their businesses out... Read More
One of the primary concerns all small businesses have is... Read More
1. Resolve to build a consistent network system.Since referrals are... Read More
How do you find the best business partners?Finding a good... Read More
Once you've decided to incorporate your small business the next... Read More
bathroom cleaning service Lake Forest ..Is it right for you?If you decide to advertise your... Read More
Car wash businesses are unique to other businesses. In fact... Read More
If you own a small business, you should know that... Read More
Why give freebies?We have all seen freebies at trade shows... Read More
We have all seen the mobile washing units cruising our... Read More
"So what?" is a lovely question.It can lead to a... Read More
The Service-Disabled Veteran-Owned Small Businesses (SDVOSB) is a program that... Read More
As a successful small business owner,you're accustomed to long hours;... Read More
All legitimate home business entrepreneurs insist and announce loud and... Read More
Today is a Red Letter Day! It's special because today... Read More
One of the best marketing strategies a business or organization... Read More
If you are the boss and you think your job... Read More
Business card size works well for invitations to special events.What... Read More
Discover How Specialized Cost Containment Creates A New Win-Win Position... Read More
If a customer owes your local business money, it's hard... Read More
Incredible as it sounds, you have a goldmine of free... Read More
When starting a business, you have to determine the method... Read More
You are selling your small business (business value under $1... Read More
Paper Shredding Business Opportunities are blossoming up everywhere because in... Read More
The Customer Analysis section of the business plan assesses the... Read More
If you're like the rest of us, you've spent a... Read More
Over the years I heard the best way to learn... Read More
We very much like what we see in Lubbock, TX... Read More
Most business owners do not think of selling their companies... Read More
COLLABORATIVE NEGOTIATING:Collaborative negotiating is a win-win strategy that can focus... Read More
Small Business |