EFFICIENT OPERATIONS
This is Part 2 in our 5-part New Business Plan.
Okay, you’ve convinced yourself, and others, that you have a profitable opportunity. Now you have to deliver it! In this section, you have to develop a comprehensive plan to actually deliver your product/service. You need a plan that will act as a clear roadmap for your operations.
Starting a new business is always a challenge, and things never go entirely as planned. That’s why this section needs to be thoughtful and detailed. Your goal is to minimize the things that can go wrong, including operational challenges that will affect your customer service, product quality and profitability. Remember, you never get a second chance to make a first impression!
This is a difficult section to sub-divide because businesses vary so much in their operations. Manufacturing, services, and retail require different operational processes and procedures. So be prepared to customize this section to your business.
Process
In this section, you must outline your process in painstaking detail. What is every step in the process? How long will each step take? What is the layout of your operation? Has it been optimized for efficiency? Are you minimizing your waste? How will you manage your transactions, from ordering to invoicing? What are your hours of operation? You get the picture…you need to fully understand your operations. A profitable opportunity is pointless if it can’t be delivered efficiently and cost effectively.
Capital Resources
If you are starting from scratch, you’ll need to detail the equipment and office supplies that you need. No item is too small; if you haven’t planned for it, you’ll only go over budget later when you have to buy it.
Human Resources
Your process is going to require people, so this is your next list to prepare. Create an organizational chart with every position in the organization, and prepare a job description for each one. Click here to learn more about the importance of job descriptions. Determining your staff requirements is essential to preparing your operating budget and calculating your profit margins.
Raw Materials/Inventory Management
As part of your process, you will have to manage your raw materials, internal supplies, and finished goods inventory. Develop policies and procedures to ensure that they are not damaged or stolen, and that they are properly rotated. Perishable products cannot be allowed to go bad, thereby affecting product quality or incurring unnecessary waste.
Quality Control
It does not matter if you are in a manufacturing, retail, or service industry…everyone needs a plan to ensure consistent quality. Quality deviations will cost you money and drive away customers, putting your business at risk before it even gets a chance to succeed. Develop checks in your system to ensure that quality is always maintained!
