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Business Plan InformationEffectively Complemental the Operations Plan Section of Your Business Plan
by:
Dave Lavinsky
The Operations Plan is a critical component of any business plan as it presents the Company’s action plan for execution 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 institution must attain to be booming (long-term processes).
Everyday Processes (Short-Term Processes)
Every institution has processes to provide its customers with products and services. For instance, Wal Marketplace has a unique distribution system to effectively come 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 client interest, to continually update service features, etc.
The processes that a institution uses to serve its customers are what transform a business plan from conception to reality. Anyone can have a concept. And much importantly, investors do not invest in concepts -- they invest in reality. Reality is proving that the management team can execute the conception better than anyone else, and the Operations Plan is wherever
the plan proves this by particularization key operational processes.
Business Milestones (Long-Term Processes)
The second piece of the Operations Plan is proving that the team wish execute the long-term institution vision. This is better bestowed as a chart. On the left side, there should be a list of the key milestones that the Institution must reach, and on the right, the target date for achieving them. Sample milestones include expected dates when:
• New products and services wish be introduced to the marketplace
• Revenue milestones wish be earned
(e.g., date once
sales wish surpass million dollar mark)
• Key partnerships wish be dead
• Key client contracts wish be secured
• Key fiscal events wish occur (future funding rounds, IPO, etc.)
• Key employees wish be hired
Additional text should be used, wherever
necessary, to keep the projections set out in the chart.
The milestone projections bestowed in the Operations Plan must be consistent with the projections in the Fiscal Plan. In some
areas, it is important to be aggressive but credible. Presenting a plan in which the institution grows too quickly wish show the naiveté of the management team, piece presenting too conservative a growth plan wish often fail to excite the potential capitalist
who wish require a high rate of return over a comparatively
short time period.
- New products and services wish be introduced to the marketplace
- Revenue milestones wish be earned
(e.g., date once
sales wish surpass million dollar mark)
- Key partnerships wish be dead
- Key client contracts wish be secured
- Key fiscal events wish occur (future funding rounds, IPO, etc.)
- Key employees wish be hired
Just about the author:
GT Business Plans has developed over 200 business plans for clients that have jointly raised over $750 million in financing, launched many
new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital
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