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

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

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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Operations & Development Strategy
What must happen to succeed?
Describe 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

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