12 CHAPTER 1 WHAT‘S IT ALL ABOUT?
OPERATIONAL MANAGEMENT
A plan provides a framework for managing a business – setting out a method for every-
thing from the overall strategy right through to the guidelines for day-to-day activities.
The level of detail varies depending on the degree of measurement and control required.
In this context, the financial part of the plan that started as justification for funding
becomes an operating budget.
As a tool, the plan provides a yardstick. It provides limits and goals against which to
measure actual performance. If these are missed or exceeded, there is early opportunity
for amending the plan, the strategy or, sometimes, the targets themselves.
All too often, the management and control aspects of a plan are forgotten. After much
frenzied activity, the plan just gathers dust in a drawer. It is easy for managers to be drawn
into the day-to-day demands of making sales, producing gizmos, chasing dockets, or
whatever – and forget that the planning process has a bigger purpose than satisfying
annual demands of the boss, the bank manager or shareholders.
Your target audience
Given the variety of uses for a business plan, it should be clear that there are many differ-
ent target audiences. As far as is practicable you should know your audience, what they
will be looking for and how they will interpret what they read. This is mainly a matter of
classifying readers by their profession and experience.
Venture capital providers are looking for a sound proposition, evidence of good man-
agement, a good marketing plan, and an exit point (a way to get their money back). A
corporate boss knows what his or her management team can do and is probably looking
more to see that the operational plan will help to meet objectives. A banker will love the
financial analysis.
In addition, any single plan will probably be read by several different people. It is
important to remember that every reader has been shaped by different experiences, has
different knowledge, will be looking for different pieces of information, and will interpret
things differently.
The business plan is a vital tool for running a business, not part of a grand
scheme to destroy forests. This book will help you meet these four key
objectives and produce a plan that is a living, working document that can
help you and your business succeed.
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