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| GrowthConnection |
Business Plan
Specialist |
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Making the Transition from Business Plan to Operating Plan |
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The operating plan keeps both management and staff focused on the tasks at hand. The parts that are pertinent to various departments can be pulled from the master plan and passed on to the appropriate staff individuals responsible. This operating plan, or working plan, is a tool to be used to operate your business. It has to be long on detail but may be short on presentation. You can afford a higher degree of candor and informality when preparing a working plan. A plan intended strictly for internal use may also omit some elements that would be important in one aimed at someone outside the firm. You probably don’t need to include an appendix with resumes of key executives, for example. However, internal consistency of facts and figures is just as crucial with a working plan as with one aimed at outsiders. Confront the brutal facts with honesty. The essence of the process is to get the right people engaged in vigorous dialogue and debate, infused with the facts and guided by insightful questions. Continuous updates should be given top priority in all entrepreneurial companies. The basic plan should be reviewed quarterly--at minimum, semiannually. Remember, for investors, the business plan is what they buy into. It becomes the benchmark for accountability. They intend to hold management responsible for achieving the goals and objectives that are set out in the plan. Changes are inevitable as the company achieves full operation. In some cases, these changes will have only a small effect on operations. In others, they could result in a drastic shift in total company focus. Given the ultimate entrepreneurial goals, it's apparent that a continuing update of business plan strategy in the form of an operating plan helps keep everyone singing from the same songbook.Learn More: What is a
Business Plan? Call today. Let's discuss how we can work together.
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