Operations & Development Strategy Business Plan Preparation Operations & Development Plans Leeds College of Business University of Colorado Boulder, Colorado

Operations & Development Strategy Tonight  Operations Plan  Development Plan

Operations & Development Strategy Next Week  Business Model Presentation  Hand in - Business Model  Entrepreneurs  Jennifer Behringer - Fenzian  Jim Pollock – CTEC  Dave Ryan – Denver Technologies  Graham Russell - entrepreneur

Operations & Development Strategy 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 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

Operations & Development Strategy 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 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

Operations & Development Strategy Operations Analysis

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)  Lease or purchase

Operations & Development Strategy 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

Operations & Development Strategy Development Timeline Source: Steve Lawrence

Operations & Development Strategy Business Model Presentation  Conclusions from research  10 minutes, 10 slides  Provide copy of slides  Content  Opportunity  Value Proposition  Profitability  Competitive advantage  Sales & Distribution

Operations & Development Strategy Business Model Summary

Operations & Development Strategy 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