Traditional organizational structures usually have a leader and multiple layers of subordinates. In a functional organization, occupations are grouped together.
Without an execution strategy, the rest of your plan is meaningless. Like the Marketing Plan, your Operational Plan is essential to the success of your business. It will be important not just to would-be lenders and investors, but also to you, to management and to your employees.
A key difference between an Operational Plan you would prepare for internal use and one you will give to potential lenders and investors is that you do not need as much detail in organizational structure of a traditional business plan latter.
Here are the key components to address in an operations plan that will be used externally. Location In the business description, you provided the address where your business will be or already is located.
If you have a retail location, describe the surrounding area and explain what makes this location effective. For example, you might be located on a major road that people drive on the way home from work, making it convenient for them to pick up groceries or a hot prepared meal on the way home.
If your business only has an online presence — perhaps you run a service that dispatches independent contractors to clean homes — explain who operates the website and handles customer service, from where and why that arrangement makes sense. Also describe where your contractors live and how quickly they can reach your customers.
Note any disadvantages or possible problems presented by your location and what, if anything, you have done or will do to counteract these negatives. Does traffic back up so badly on the road where your store is located that cars struggle to exit the parking lot during rush hour?
Nov 01, · Traditional organizational structure is a strategy for organizing a business or other entity in what is known as a hierarchy or a top-down structure. With this approach, the processes of task allocation and management focus on a vertical structure that strictly defines a chain of command. The Organizational and Operational Plan describes how you will structure your company and how you will actually carry out everything you present elsewhere in your business plan. 4 common types of organizational structures. This is your traditional business with a sales department, marketing department, customer service department, etc. Create an organizational structure for your business.
Do you have enough parking spaces to handle peak volume? For an online business that uses independent contractors, what are the drawbacks associated with not having all your employees operating from a single location? What are the advantages?
State whether you own or lease the property your business operates out of and provide the terms of your mortgage or lease. Present information such as the monthly payment, the length of the term, whether you are legally able to sublet and the terms of the early termination clause.
If you rent, state whether your lease is net, double net, or triple net — in other words, is it you or the landlord who will be responsible for property taxes, insurance and maintenance? If your company is responsible for any of these items, how much do they cost?
Provide details such as the square footage of the property, how your store or facility is laid out, what type of loading area it has to receive merchandise if applicable and the number and location of parking spaces.
Also provide data about vehicle and pedestrian traffic, accessibility from major roads and highways, related nearby businesses that provide synergy or competition, and anything else that affects your location. If your business has more than one location, be sure to describe each one.
Also discuss the major fixtures and equipment your business requires and how they integrate with your space. Note whether you are likely to outgrow the space, and if so, how you plan to handle a move or expansion. Supply and Inventory Management If you sell a product, the inputs that go into making it will be your supplies and the final product will be your inventory.
Who will your suppliers be?
Do you have multiple options available, or are you beholden to a single supplier, which may subject you to shortages and give you little bargaining power with regard to price and delivery schedule? What terms have you established with your suppliers? For example, do you pay cash on delivery, or do you have 10 days or even 30 days to pay?
Do you get a discount for early payment? What kind of reputation do your suppliers have? Will they extend credit to your business, and if so, how much and on what conditions? Can you return unused supplies and if so, within what timeframe? What percentage of the purchase price will be refunded?
Having good relationships with your suppliers can help you manage your inventory effectively. If you operate a service business, your workers are your supply. Have you hired enough contractors to meet the demand for your cleaning service?
How do you check out their credentials and backgrounds to ensure that your customers receive a high quality work product and that your cleaners do not assault them or steal from them? Do you pay higher rates at times of higher demand to entice more contractors to work for you?
Describe each major stage, including any processes that are outsourced and the technologies you use, remembering that you are writing for someone who may not understand the acronyms and terms of art common in your industry.Reevaluate your organizational structure if your company experiences rapid sales or staff growth, adds divisions or product lines, alters its production processes, or struggles to meet goals and objectives under its existing structure.
Define Organizational Structure & Management – How to Write a Business Plan: Part 3 of 8. THE COMPANY DESCRIPTION The next section of your Business Plan should contain a description of your company.
The Organization and Management section of your business plan summarizes the information about your business' organizational structure, business members' duties and expertise, as well as their education or qualifications. While business plan outlines vary, often this section comes after the market analysis.
Home» Table of Contents» Developing a Strategic Plan and Organizational Structure» Chapter 9. Organizational structure is something that is best decided upon internally, through a process of critical thinking and discussion by members of the group.
published on August by Business Excellence. This article focuses on four key. The Organizational and Operational Plan describes how you will structure your company and how you will actually carry out everything you present elsewhere in your business plan.
4 common types of organizational structures. This is your traditional business with a sales department, marketing department, customer service department, etc.
Create an organizational structure for your business.