Building a Strong Foundation for Your Small Business

You’ve got the big idea. You’ve crunched the numbers, developed your product or service, and you’re ready to launch. But what happens after the grand opening? How will your small business run day-to-day, and how will it grow in the future?

Many entrepreneurs focus on the initial stages of a business plan—the market analysis, the financial projections and the marketing strategy. These are crucial, but the foundation of a resilient and successful business is also built on a strong management and operations plan. This is the section of your business plan that details how you will actually run your company.

It’s tempting to think you can handle everything yourself, but even the most talented business owner needs a clear plan for how work will get done. Your management and operations strategy should address three key areas:

• Ensuring customer satisfaction: How will you consistently deliver a high-quality customer experience?
• Outlining roles and responsibilities: Who does what, and how will you measure their effectiveness?
• Planning for growth: How will your business scale as demand increases?

Let’s break down these elements and explore how they come together to create a robust operational framework.

The People Behind the Plan: Human Resources

Your business is only as strong as your team. The human resources section of your plan is where you outline who will be doing the work. This goes beyond just listing names; it’s about showcasing the experience and skills of your core management team and identifying any skill gaps you may need to fill.

Consider what specialized assistance you’ll need. Don’t be afraid to admit you can’t do it all. Most successful businesses rely on outside experts for support in areas like:

• Financial management: An accountant or bookkeeper
• Legal advice: An attorney
• Risk and compliance: An insurance agent
• Marketing and advertising: An agency or consultant
• Technology: An IT company or consultant

This section should also cover the specifics of your team: how many people you’ll hire, their roles, and whether they will be full-time, part-time or contract employees. Detail your hiring and training processes and include an organization chart. This demonstrates that you have a clear vision for your team’s structure and growth.

The “How It Gets Done”: Operations

If human resources is about the “who,” then operations is about the “how.” This is where you detail the processes and workflows that will keep your small business running smoothly. 

Ask yourself these critical questions:

• Workflows: How will you process new orders or requests for service? How will you manage returns or changes?
• Quality Control: What measures will you put in place to ensure your product or service is consistently excellent?
• Performance: How will you handle performance reviews and ensure your team is meeting expectations?
• Project Management: What tools will you use to keep everyone on track and accountable?

A detailed operations plan shows that you’ve considered the realities of running your small business. It’s a roadmap for ensuring you deliver a quality experience to your customers time and time again.

Charting the Future: Growth and Development

Your business plan isn’t just a document for today; it’s a guide for tomorrow. The growth and development section allows you to look ahead and define your vision for the future. Whether you plan to develop new products, open additional locations, or target new markets, a growth plan is essential for making strategic decisions now that will help you achieve your long-term goals.

As you write this section, consider:

• Expansion Goals: What are your specific plans for growth?
• Obstacles: What challenges do you foresee, and how will you overcome them?
• Financing: Will you need additional funding to support your expansion?
• Milestones: What key metrics will you track to ensure you are on the right path?

For businesses focused on commercializing a new invention, this is also where you would include a commercialization strategy, outlining the timeline for making your product or service ready for the market.

Your Next Step

A well-crafted management and operations section is more than just a requirement for a business plan; it’s a strategic tool. It helps you anticipate challenges, create a plan for success, and ensures you have a solid foundation for growth.

The Michigan SBDC is here to help you every step of the way. Our business consultants can provide guidance as you build your management team, flesh out your operations strategy and plan for the future. Contact us today to schedule a meeting and start building your blueprint for a sustainable and successful small business.