Guest Post: Operational Information to Include in Your Business Plan

shutterstock_338719268

Benjamin Franklin said that failing to prepare is preparing to fail. This is especially true when business planning. A business plan will be the road map that you follow as you create and grow your business. Central to the plan is the operational information that will link all of the parts together and transform your idea into a viable business.

Components of a Business Plan

Before focusing on one part of the business plan, it is important to understand all of the pieces that make up a good plan because they are all interrelated. According to the U.S. Small Business Administration, a typical business plan will have an executive summary, company description, market analysis and marketing methodology, management, services or product, and a financial projection. Each of these parts is dependent on information from other parts. For example, financial projections will influence the speed of manufacturing and vice versa. If you can only make 10 items a day, you either need to have a high price point or a low financial projection.

Start With the Market

There are several theories for developing a price structure, but the easiest is to set your price comparable to that of the industry average. Once you have your unit prices for products or services, you will multiply this by the number that you can make in a month to get your monthly revenue. Conversely, if you know how much you want to make per month, you can divide this by your unit cost to get the number for production in the month. Since all of your financial analysis comes from revenue and revenue comes from service or product delivery, this is the first important piece of operational information that you will need.

Know the Competition

Your competition will be one of your primary operational drivers. Do not look at them as an enemy. Instead, see competitors as businesses that have already achieved a market share and use them as a model of success. Most successful manufacturing companies have their pertinent information online. For example, Apple Rubber has material guides for its o-rings posted on its site. Assimilate this data into your operational plans instead of trying to reinvent the wheel.

Develop Flowcharts

There are a lot of moving parts to any business. It is one of the reasons that you want to plan it out. To truly understand the minutia of your operations, use a flowchart and plan out every element of the process from concept to delivery of products. Since one of the reasons for a business plan is to prove competency to an investor, the operations flowchart should be done with extreme detail. The ordering of supplies, quality assurance and distribution all need to make an appearance. If this is for a sole employee business, then the flowchart needs to show all of your activities, including marketing, accounting and service delivery.

The Cost of Space

The space needed to run your operation is directly influenced by the business structure, type of business and number of employees. This information also flows into your financial analysis as the purchase of a building will change the structure of your assets. Decide whether to purchase or lease and do not forget to include various fees associated with real estate. Weave all of this information throughout your plan so that it gives the most guidance possible for you and your business.

 

About the Author:

Paul Reyes-Fournier has served as the chief financial officer for social service organizations, churches and schools. He created his ownmarketing firm, RF Media. Paul holds a BS in physics and an MBA.

Share

Keynote Speaker 9/19/13: “Social Media and Big Data: A Match Made in Heaven?” Register Now!

Join the NYC Tri-State TDWI Chapter on September 19th to find out.  Register here.

tdwi

As social media has moved from marginal to mainstream, what are the behind-the-scenes implications, prerequisites and constraints imposed by this new social media world order? What are the opportunities and challenges for data warehousing, IT and business innovation? How do they – or do they – all need to change to accommodate new market circumstances?

Our keynote speaker for September 19th, Dr. Natalie Petouhoff, renowned author, lecturer, teacher and social media evangelist, will explore the business impact of social media from a holistic approach. New and emerging data streams are both a stress and an opportunity for the IT department: a stress, in having to meet the challenge of understanding the market and adapting with new tools, systems, procedures and integration requirements. But also an indisputable opportunity for the IT, data collection and warehousing departments to raise their profile. They are now empowered to deliver new insights, answering questions that were ignored previously and working in partnership with sales and marketing as never before.

In this forum, we will address the following questions:

  • How can back office operations, IT and data collection work more effectively with the front office to achieve business objectives?
  • How do you effectively integrate social media with the back office?
  • How do increasing needs for speed of information processing and connectivity on the back end relate to engagement and branding on the front end?
  • What are the metrics and KPIs that matter?
  • Call centers: are they a new research tool?  What is their role in providing business insights?
  • On what new analytical methods do we need to focus for best practices?
  • To what extent has social media influenced social or collaborative business?

Keynote Speaker Bio:

Dr. Natalie Petouhoff, CEO, Social Business Builders: The Results Group, Ph.D., Engineering, Social Media Measurement and ROI Best Practices Expert, former Forrester Analyst, Adjunct Professor at the Anderson School at UCLA, is also a noted author, speaker and management consultant.

Dr. Natalie has management consulting as well as organizational change management experience. As a Forrester Analyst, she wrote the world’s first social media ROI model for PR, marketing and customer service. She’s guided CRM, Customer Service, Marketing, PR and Social Media professionals and C-level executives to develop customer-facing business strategies that drive revenue and increase margins.

REGISTRATION

The seminar is open to all business, analytics and information technology managers, with an interest in Business Intelligence, Data Warehousing, Analytics and Healthcare.  There is no fee to attend our program, although pre-registration is required.  Visit the <<TDWI Chapter Registration Link >> or the <<NYC Tri-State Area Chapter>> page to register.

WHO SHOULD ATTEND:

  • Information Technology Managers, Business Analysts and Data Professionals interested in Business Transformation and Software
  • Call Center Managers, Data Collection and Data Warehouse Professionals Challenged by Big Data Collection, Analysis and Social Media
  • Marketing Executives BI/DW professionals with an interest in Social Media and ROI Measurement

Network Before, During and After the event

Follow us on Twitter: @TDWINYC

Event Hashtag: #TDWINYC

Join our LinkedIn Group: TDWI NYC Tri-State Area Chapter

What TDWINYC is about

∎ Analytics ∎ Business Intelligence ∎ Best Practices ∎ Big Data ∎ Big Data in Healthcare, Finance, Government ∎ Big Table ∎ Business Analytics ∎ Cassandra ∎ Cloud Computing  ∎ Data Warehousing ∎ Data Visualization ∎ Decision Management ∎ Hadoop Innovation ∎ IT ∎ MapReduce ∎ Operations ∎ Operations Research ∎ROI ∎ Results ∎ Social Media ∎ Business Success ∎

We look forward to seeing you!

At Social Business Builders,
we work with brands & software companies to deliver increased revenue and decreased costs.
Our Motto? Learn. Share. Grow!

@DrNatalie L. Petouhoff
310-919-8467

Want to see how to get an ROI from Social Media? Check out these fun videos:
Video 1: Building the Business Case for Social Media
Video 2: How to Measure the ROI of Social Media
Video 3: How Social Media Benefits the Whole Company

Here’s My book on How Businesses can Drive Sales on Facebook: Like My Stuff: How To Monetize Your Facebook Fans

Want to get more info on the business use of social media? Connect with me here:
Twitter:
 @drnatalie
LinkedIn: DrNataliePetouhoff
G+ : Google Plus posts
Facebook: https://www.facebook.com/natalie.petouhoff

Enhanced by Zemanta
Share

Webinar Alert: “How to Make a Business Case for Social Media Analysis” 11/15 12:00pm EST

I thought my readers might be interested in attending an upcoming complimentary webinar featuring myself, How to Make a Business Case for Social Media Analysis on Thursday, November 15 at 12:00pm EST (9:00am PST).

Space is limited. Reserve your webinar seat today.

ABOUT THE WEBINAR

2.7 zetabytes of data exists in the digital universe today. Predictions estimate that 35 zetabytes of data will be generated annually by 2020.* IDC estimates that by 2020, business transactions on the Internet- business-to-business and business-to-consumer – will reach 450 billion per day.  Facebook alone stores, accesses, and analyzes 30+ petabytes of user generated data.* How do you make sense of it all?

Clearly, the rate at which businesses are able to quickly analyze, accurately interpret, take action and pivot on the myriad of consumer interactions coming through channels such as Facebook, Twitter, blogs, forums, newsfeeds, mobile, et al, will be determining factors for future business success. With competition and the influx of interactions growing daily, some departments still struggle with their social media strategy and how to build a business case for the support and funding of a social media analysis initiative. 

Join Social Media ROI Strategist Dr. Natalie Petouhoff and Crimson Hexagon’s Vice President of Marketing Wayne St. Amand for an exclusive webinar. Learn how to make a business case for social media analysis that will improve your chances for social media budget funding and expand your business. 

In this webinar, we will discuss:

  • How to use a 4-step process to build a business case for a social media analysis initiative
  • How to distill a business case into one simple sentence
  • How to quantify social media benefits and the five benefit categories
  • Case studies on how leading companies are using deep insights in social media analysis to execute meaningful actions that prove the associated business case

Space is limited. Reserve your webinar seat today.

 

ABOUT OUR FEATURED SPEAKERS

Dr. Natalie L. Petouhoff ~ @drnatalie
Social Media ROI Specialist and Social Business Strategist

Dr. Natalie is an adjunct professor leading a Social Media Business Course at UCLA and at Anderson School of Management. She helps clients by providing unique business perspective on how to apply social media to business.

She uses social media assessments to determine the capabilities and readiness of an organization or department. And then can set up social media business cases, measurement programs, using social media ROI calculators to help clients to develop social business strategies, tactical and real-world execution capabilities so that social media increases the bottom line.

Wayne St. Amand ~ @WayneSaint
Vice President of Marketing, Crimson Hexagon

Wayne St. Amand is a veteran marketing leader with a track record of significantly acclerating the growth trajectory and valuation of technology businesses. At Crimson Hexagon, St. Amand is responsible for driving business expansion through the company’s global corporate and product marketing efforts.

He works actively with the company’s customers to discover and communicate some of the world’s most groundbreaking uses of social media analysis technology.

 

Learn. Share. Grow!
@DrNatalie L. Petouhoff

For more info on my work:
Ebook
:Social Media ROI

Social Media ROI YouTube Videos:
Video 1: Building the Business Case for Social Media
Video 2: How to Measure the ROI of Social Media
Video 3: How Social Media Benefits the Whole Company

Book on Monetizing Facebook: Like My Stuff: How To Monetize Your Facebook Fans

Let’s Connect here:
Twitter:
@drnatalie
LinkedIn: DrNataliePetouhoff
G+ : Google Plus posts

Enhanced by Zemanta
Share