Business Plan Preparation Frank Moyes Leeds School of Business University of Colorado Boulder, Colorado Operations & Development Strategy

Operations & Development Strategy Tonight Business Analysis Presentation Operations Plan Development Plan Peer evaluations Review Plan status Team meetings Operations & Development Strategy

Operations & Development Strategy Next Week Business Analysis Assignment PowerPoint 10 minutes, 6-8 Market & Industry Analysis Product/Service Description Profitability Operations & Development Strategy

Critical Elements of a Business Plan (& You Must Address) Strong market Attractive industry Clear value proposition Sustainable competitive advantage Understanding of profitability & cash flow Management – not this week Frank Moyes

Use Market Analysis & Industry Analysis Provide validation that this is a good opportunity Explain why you will succeed Show how you will you make money Describe business model Operations & Development Strategy

Operations & Development Strategy 3 ring binder Market Analysis - draft Industry Analysis - draft Product/Service Description - draft Value Chain analysis Competitive matrix Financial COMP’s Revenue Model 20 interview Call Reports – not if did Feas Plan Operations & Development Strategy

Market & Industry Analysis Industry Structure Value Chain Distrib Suppliers Consumer Manfg Sources Retailers Goods Information Funds Market & Industry Analysis A T Kearney, Integrating the Supply Chain

Business Plan Elements Executive Summary Company Overview Product or Service Description Industry and Marketplace Analysis Marketing Plan Operations Plan Development Plan Management Financial Projections Offering, Funding Requirements, Valuation Operations & Development Strategy

Operations & Development Strategy Operations Strategy Operations section describes the inputs, processes, procedures and activities required to produce goods or services Operations How gain a competitive advantage Operations that add to your value proposition Supply chain analysis will help write this section Total concept Operations: process through which resource inputs are converted into useful outputs Operations & Development Strategy

Operations & Development Strategy Scope of Operations In-house vs. subcontract What is key to the success of your business – core competencies Consider: Production Product development Order fulfillment Customer service/Tech support Warehouse and shipping Installation Warranty service & repairs Operations & Development Strategy

Operations Analysis (Walk an Order) Pre-purchase Contact points Purchase Customer support Fulfillment Joint Ventures/Partnerships People Logistical Plan & Equipment People requirements Systems & Technology Inventory levels Information requirements Walk an order through your business Operations & Development Strategy

Operations & Development Strategy Ongoing Operations Identify key vendors, suppliers, strategic partners Describe the arrangements Price agreements Determine manpower requirements Provide a layout of the production or service process Determine inventory levels to support marketing Identify key performance indicators Operations & Development Strategy

Production/Service Capacity Determine production/service capacity required based on sales forecast Type of facility – size and type of space (office, labs, production, warehouse & shipping) Location Capital assets (equipment, vehicles, buildings, fixtures, computers & software) Operations & Development Strategy

Operations & Development Strategy What must happen to succeed? Describe 5 -10 key events that must take place with completion dates Product & process development Intellectual property Key agreements Market & beta tests Marketing actions Key hires Start-up phase: doesn't happen all on day one Operations & Development Strategy

Operations & Development Strategy Development Timeline Operations & Development Strategy Source: Steve Lawrence