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.
May You Business Be - As You Plan It!
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Dr Greg Chapman is the Director of Empower Business Solutions 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.
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.
May You Business Be - As You Plan It!
Subscribe to this Blog for more Small Business news and tips.
Share this article:Small Business Best Practice Benchmarks - Operational Plan
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 published.]
Dr Greg Chapman is the Director of Empower Business Solutions 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.
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