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

2. Tonight Operations Plan Development Plan Review Plan status
Team meetings
Operations & Development Strategy

3. Next Week Business Model Presentation
Hand in - Business Model & copy of presentation
Entrepreneurs to give feedback
Operations & Development Strategy

4. Business Model Presentation
Conclusions from research
10 minutes, 10 slides
Provide copy of slides
Will be holes
Operations & Development Strategy

5. Key Elements of Presentation
Opportunity – problem you are solving
Market Analysis
Size, growth and trends
Segmentation
Competitive Analysis
Major competitors
Likely competitive advantage
Profitability
Revenue model
Margins
Product/Service
Alternative products/services
Key features
Operations & Development Strategy

6. Must Provide Validation

7. Business Model Hand-in (Three-Ring Binder)
MARKET ANALYSIS – draft of the business plan section
INDUSTRY ANALYSIS – draft of the business plan section
PRODUCT/SERVICE – draft of the business plan section
Value Chain analysis
Competitive Matrix
Financial COMP’s
Revenue Model
Interviews 20 Call Reports
Operations & Development Strategy

8. Business Plan Elements
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 Strategy
Operations section describes the inputs, processes, procedures and activities required to produce goods or services
Operations = 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. Scope of Operations In-house vs. subcontract Consider:
Scope of Operations
In-house vs. subcontract
What makes most sense for your business?
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. Ongoing Operations Identify key vendors, suppliers, strategic partners
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)
Lease or purchase
Operations & Development Strategy

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