NUTS AND BOLTS OF GREAT BUSINESS PLANS-2016.pdf

D costs discuss the design development budget

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D. Costs: Discuss the design & development budget, including costs of labor, materials, consulting fees, etc. Discuss the impact on cash flow projections of underestimating this budget, including the impact of a 15 to 30 percent contingency. E. Proprietary Issues (this is where you discuss intellectual property): Describe any patent, trademark, copyright, or intellectual property rights you own or are seeking. Do you have any trade secrets? Describe any contractual rights or agreements that give you exclusive or proprietary rights. Discuss the impact of any unresolved issues or existing or possible actions pending, such as disputed rights of ownership, regulated to proprietary rights on timing and on any competitive edge you have assumed. SECTION VII: OPERATIONS PLAN The operations section is vital, for it outlines how you will actually create value. It is a day in the life of the business---how you do what you do. Operations is concerned with your production process (for products) or service delivery process (for services). It addresses inputs, throughputs and outputs. In addition to how you produce, it includes such factors as location, the type of facilities needed, space requirements, the actual process of producing the product or service, capital equipment requirements, and labor (both full- and part-time) requirements. For a manufacturing business or business that produces a product, the manufacturing and operations plan needs to include policies on inventory control, purchasing, production control, and which parts of the product will be purchased, which functions will be outsourced, and which operations will be performed by your workforce. A service business or a retail business may require particular attention to location (proximity to customers is generally a must), the service delivery or merchandising system, minimizing overhead, and obtaining competitive productivity from a labor force. In many cases, up to 80% of your expenses will be for operations, 80% of your employees will be involved in operations and 80% of your time will be spent worrying about operating problems. You will probably have to make trade-offs with your operations ---it is impossible to have the lowest costs, highest quality, best on-time delivery and most flexibility in your industry all at the same time. This is where you have to make trade-off decisions that fit your other plans. A. Operating Model and Cycle: Outline the operations process for your business. Identify the inputs, operations (key steps or stages) and outputs (present a flow diagram). This is a day in the life of actually producing your product or creating and delivering your service---walk us through the mechanics of doing so. If relevant, you may want to distinguish your model for managing ‘front stage’ vs ‘back stage’ operations .
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