For example, perhaps your chief operating officer previously worked for a company that used a network of independent contractors to provide handyman services. Identify your operations challenges to overcome and the costs associated with those challenges.
For example, Express Personnel now called Express Employment Professionalsa staffing business that began in Oklahoma City quickly opened offices around the country via a franchising model.
Identify the industry standards and regulations and how you meet them e. Finding new ways for your customers to use your product—like turning baking soda into a deodorizer for your refrigerator—is another form of market penetration. Having good relationships with your suppliers can help you manage your inventory effectively.
The type of structure, the size, the location.
This growth strategy would involve buying a competing business or businesses. If you rent, state whether your lease is net, double net, or triple net — in other words, is it you or the landlord who will be responsible for property taxes, insurance and maintenance?
Eventually, the company offered employment staffing services in some different locations, and the company became the fifth-largest staffing business in the U.
This kind of growth strategy tends to be fraught with risk and problems, says McFarland, and is rarely considered viable these days. Identify your suppliers, what they supply, their pricing today and what you expect their pricing to be for the life of the plan.
Acquisitions can also be focused on buying component companies that are part of your distribution chain. It will be important not just to would-be lenders and investors, but also to you, to management and to your employees. Ensure that you include your business operations strategies in the business plan outline.
That includes equipment and facilities management and cost; maintenance management and cost; labor force number of people required for the production and sales goals ; the budgets for each of the operations line items; and the planned operating profit margin for each product.
See how your business operations are doing compared to your plan: Prepare a list of all equipment including what it doeswhat it cost, what its worth today market valuefinancing arrangements, and the remaining estimated useful life of the equipment.
The bottom line for small businesses, especially start-ups, is to focus on those strategies that are at the lowest rungs of the ladder and then gradually move your way up as needed. Sometimes the best approach is to take it one rung at a time.
If you feel you have adequate space now, project into the future based on sales growth and predict when and how much space you might need 5 or 10 years from now. Identify the terms and conditions and annual invoice amounts. Here are the key components to address in an operations plan that will be used externally.
As you go about developing your growth strategy, you should first consider the lower rungs of what are known as Intensive Growth Strategies.
But if your business is extremely small, the organization plan will be quite short. You know how to improve on the model of your former employer to create a superior offering.
Once you develop your business operations plan, and define operations management strategies, track the actual results to the projected forecast on a monthly and annual basis. Your Business Operations and Workflow Make sure during your planning process that you consider operation or production constraints.
Using the Internet as a means for your customers to access your products or services in a new way, such as by adopting a rental model or software as a service, is another Alternative Channel strategy.
Include land, buildings, equipment, inventory finished goods as well as materials or supplies and in-process inventory at the time of writing the planvehicles, and whatever else you have as assets.
Include wages and benefits paid and future employee compensation costs, e. The same is true for a cleaning service — how will you match up homeowners who want their houses cleaned and landlords and tenants who want their apartments cleaned with your pool of workers?
Growth strategies are never pursued in a vacuum, and being willing to change course in response to feedback from the market is as important as implementing a strategy in a single-minded way. Will they extend credit to your business, and if so, how much and on what conditions?
Have you hired enough contractors to meet the demand for your cleaning service? Understanding and effectively managing the operations side of your organization is key to running a successful business.
Include an organization chart showing the hierarchical structure of your business. For more timely and regular monthly information on managing your small business, please subscribe here.
Your organizational plan should provide names and professional descriptions of each owner and manager your business will have; include the bios and professional backgrounds of all principals.This quick guide offers tips that will help you create the operations section for your business plan.
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The Organizational and Operational Plan describes how you will structure your company and how you will actually carry out everything you present elsewhere in your business plan.
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