by Dr Greg Chapman
The first article on Small Business Best Practice Benchmarks was about how all great businesses have a five year strategic plan. While this is a necessary part of the planning process, it is not sufficient. There also needs to be a detailed operational plan.
The centre piece of the operational plan is an annual financial plan or budget. Key components of the operational plan are:
• Marketing and Sales plans
• Production plan
• Supply plan
• Distribution plan
• Financial plan
• OHS plan
• Customer Service plan
• R&D and Innovation plan
• Human Resources plan
• Leadership plan
All these plans support the strategic objectives of the current year and are brought together into a fully costed budget. From this budget, Sales, Gross Profit and Expenditure targets can be set and a profit forecast derived month by month.
Key Performance Indicators for every part of the business - daily, weekly, monthly, quarterly and annual, are produced by great businesses, from these plans.
Subscribe to this Blog for the next Small Business Best Practice Benchmark Tip
May Your Business this Year be - As You Plan It.
Over to You. What do You Think? Post Your Comments Below. [Note to those seeking a free ride on our google ranking, blog spam will be deleted, but genuine contributions will be happily approved.]
Dr Greg Chapman is the Director of Empower Business Solutions and The Australian Business Coaching Club and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success and Price: How You Can Charge More Without Losing Sales.
Share this article: Small Business Best Practice Benchmarks- Operations Plans
Promote Your Business on our Facebook Fan Page
To send this article to a Friend, click on one of the links below.