Business Plans

Writing a Business Plan – Operations Strategy

business plan should include an assessment of your production and operations strategy. Operations have a steep learning curve, but many successful companies, such as Wal-Mart, have grown by leveraging their operational infrastructure. What Role Will Operations Play in Your Company? This will depend on the nature of your business. If you’re selling a consumer good, it will be important to make sure you can get your products to your clients at the time you promise. A service company relies on an operational plan to make sure customers are seen in an efficient manner. When writing your business plan, focus on where production and operational efficiencies are needed to help the company succeed, including buying power and economies of scale. Where Will You Get Your Sourcing Materials? This mostly applies for startups selling goods, rather than services. In this section of the business plan, spell out what raw materials are needed to make your product and from where you plan to Continue Reading

Writing a Business Plan – Planning Your Exit Strategy

The final portion of your business plan outlines your exit strategy. It may seem odd to develop a strategy this soon to leave your business, but potential investors will want to know your long-term plans. Your exit plans need to be clear in your own mind because they will dictate how you operate the company. For example, if you plan to get listed on the stock market, you’ll want to follow certain accounting regulations from day one. If you plan to pass the business to your children, you’ll need to start training them at a certain point. Here’s a look at some of the available strategies for entrepreneurs: Exit Strategies for Long-Term Involvement Let it run dry: This can work especially well in small businesses like sole proprietorships. In the years before you plan to exit, increase your personal salary and pay yourself bonuses. Make sure you are on track to settle any remaining debt, and then you can simply close the doors and liquidate any remaining assets. With the larger Continue Reading

The Business Plan: Not Just a Blueprint

How to choose the right business plan format Business planning is a vital component of starting and growing a successful enterprise. Many different templates and variations of business plans exist, so you must choose the right one for your purpose and your enterprise. Who is the intended audience? Some business plans are designed for internal audiences (owners, employees, Boards of Directors or Advisors, and senior management) for an existing organization for the purposes of implementing a growth strategy and may be referred to as a strategic plan. It can also serve as a guide solely for the owner of a new business to help clarify their vision and goals. A business plan could also be for external audiences (investors, clients, suppliers, new hires, bankers and other lenders such as government) for the purposes of attracting financing, talent or suppliers for a new or existing business. A document for this audience may initially take the form of a condensed version of the larger Continue Reading