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You see, regardless of the size of the company, no company can afford everything it would like to do Resources have to be allocatedThe essence of strategic planning is to allocate resources to those areas that have the greatest future potential Reginald Jones, Making Strategy Work The quote speaks to the real objective of the planning process: to reach those vital few strategies that can be activated and achieved in a one- to three-year periodThe problem that exists in many companies is the proliferation of strategies and the danger of diluting their successful execution because of the sheer volume and resource requirements
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The emphasis in this section is on the supply chain for the preparation, assembly, manufacture, and delivery of your products and services The information presented here will again allow for more detailed planning by managers who represent the subfunctions such as engineering, purchasing, inventory management, quality control, operations/manufacturing, and logistics The key areas to be covered are:
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Equipment: Describe the equipment required to run the business This will include the value of existing equipment and projected costs of additional equipment needs Capital Asset Management: Provide expectations regarding inventory management, days sales outstanding, and receivables/payables balance Create a complete list of assets Materials Management: Identify supplier requirements in terms of price, lead times, and cost Look for opportunities to build long-term relationships with suppliers Production: Identify production cycle times and production rates per product line In service situations, map processes and identify opportunities to streamline Consider the measurements of cost, quality, and speed of delivery Quality: Provide specificaOperational planning tions and standards that The day-to-day implementaare expected to be attained tion of policies, practices, in the production and use KEY TERM and systems that are conof products and services sistent with the mission and that support the overall company strategic objectives You ll want to include cusThe overall goal of operational planning tomer satisfaction measis to provide specific information regardurements, as well ing company-wide imperatives such as Facilities, Plant, and cost reduction, cost management requirements, functional priorities, and Office Space: Describe the higher-level metrics that can help guide facilities and premises detail planning at both the department including the square and individual levelsAs was stated earfootage and locations of lier, alignment is the litmus test in which goals are integrated in some way at each facility It may be every level of the organization useful to include drawings
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Creating a Focused Business Plan
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of the building, copies of lease agreements, and/or recent real estate appraisals The total value of the land and buildings required for business operations should be calculated, including overall worth of the bricks and mortar
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Cost: Give direction to support and production and delivery units by estimating the standard cost of products and services
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E-Commerce Strategy: How the Company Will Maintain a Presence on the Internet
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In this section you ll explain how you ll conduct business through the Internet, if applicable In every situation, it will be important to maintain a website to have a method of introducing the company In addition, a description of products and services and a method of contacting key personnel at the company will provide a basic connection to the company One opportunity to take advantage of is to use some of the information in the business plan to populate the website If you choose to sell products and services from your website, an e-commerce section can be built in, including credit cards for payment
Management Team Summary
In this section you ll want to include each key member of the company management team, their qualifications, their accomplishments, and their commitments to the business success This information is especially valuable for investors and customers as they determine whether they will do business with the company This information offers a degree of credibility for the management of the company, so it should be prepared with careful details and projections of strong leadership skills
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