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The Operational Strategy and Plan


In our series of making the Business Plan, we come to the section of the Operational Strategy and Plan. Though relatively simple, it involves the most controllable factor in the whole business plan.


In essence, the Operational Plan, is how the company is going to execute its vision. What steps are they going to take and what resources are they going to need.

The Operation Strategy outlines the whole execution of operations, including developing new technologies and products, beta testing, prototyping capacity planning, resource utilisation, and capital spending.

Once the company develops a product/service roadmap and aligns to the technology roadmap, the execution plan can be developed. The execution plan will dictate the steps that the company will take to put their plan into action. This will include resource acquisition and allocation strategies.

It is after the resources are planned, that capital spending can be estimated, which in turn will drive the cash requirements for the company, over time.

This section of the business plan then becomes the key driver for the financial plan. The assumptions made in the operational strategy and plan will determine how money will be spent and cash flow managed. It is only after the operation and the marketing plans have been developed that you can proceed to the financial plan.

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