Operational & Resource Planning “making it happen !!”

Operations Good 1 A Service 1 B Your Venture C Good 2 D Service 2 Various Inputs Conversion Various Outputs

Operations Good 1 Service 1 Your Venture Good 2 Service 2 Material - fixed Service 1 Material- consumable Your Venture Technology resources Good 2 Human resources Service 2 Financial Resources Various Inputs Conversion Various Outputs

Material Resources - Fixed These are the resources that would be considered in the category of “Plant and Equipment” These are the “tangible” things that you will need to run your business Known as “Fixed Assets” in accounting terms

Material Resources - Fixed Questions that need to be asked What tools and equipment will I need? Where will your venture be located? Can you operate without a “bricks & mortar” facility? How much space will you require? Buy or rent? Will you manufacture products yourself? Will you contract out manufacturing?

Material Resources - Consumable These are the resources that you are going to use up or “consume” through the regular workings of your venture These resources don’t add value to your company, but your company can’t run without them Known as “expenses” in accounting terms

Material Resources - Consumable Questions that need to be asked What sources of raw materials will you use? How much will these materials cost? How often will suppliers deliver materials What return and refund policies do suppliers offer? What other routine costs are involved?

Technological Resources These resources refer to actual technology that will be used to either produce your product or make your company more efficient This can be a sub-category of the fixed resources

Technological Resources Questions that need to be asked What types of technology will you use? Computer, Mechanical, Chemical, Other How much will these technologies cost? Who will supply the technology? What is involved in maintaining / improving these technologies? What other routine costs are involved? What technologies are your competitors using?

Human Resources These refer to the actual people that will be working for your venture They do not have to be actual employees, although many will be Can also refer to mentors and advisors, outside professionals, associates and partners, business development centres, etc. “Two heads are better than one, three are better than two”

Human Resources Questions that need to be asked What skills do you need to operate your business? What skills do you need to hire permanent staff for? What skills can be supplied by part-time staff? What skills can be supplied by contracted services/vendors?

Contingency Planning What If ? Have a back-up plan or two for specific events if highly probable Overall, plan for three scenarios: Realistic case (most likely) Optimistic (Best) case Pessimistic (Worst) case

Operating Strategy Human Resources: Who will do each job? How will work be supervised? How will people work together?

Operating Strategy Fixed Materials (Capital Resources) What will facility be like? How will production process be organized? Consumable Materials How will supplies be ordered and organized?

Operating Strategy Management What records must be kept and who will keep them? How will the venture keep costs to a minimum? What rules and regulations apply to this venture? What environmental regulations apply? (a “GREEN” plan)

GAP Analysis Shows difference between what is already in place and what should ideally be in place Good venture plans should show GAPS and the plans to fill or bridge them.