One of my favorite serial entrepreneurs is an ace at working out all his operational plan. He and his wife and business partner always spend an inordinate amount of time working out all the details of how they will get their business up and running. They have amazed me with how thorough they are in learning about the spaces they could occupy, the government licenses and approvals they would need, and the technology and employees they would need to make the business as productive as possible. I often wish my other clients were as thorough as this couple.
Nevertheless, they still discover things not turning out exactly as planned. When that happens, they figure out a way around the challenge.
When you're planning a start-up or are running a growing business, operations can be an after-thought or can be overwhelming. But having a detailed operating plan can make the difference between success and failure. Understanding the key components that drive your business's productivity can help you free up cash flow and use scare resources more wisely.
Planning and flexibility can help you roll with the economic punches. Another one of my clients during the downturn realized that shutting down his warehouse and business offices could help him cut costs. He and his wife and partner (a different entrepreneurial couple) now work out of their home and outsource all their warehousing, design and manufacturing, allowing them to focus on building sales and managing the outsourcing.