What is an Operational Plan?
Learn how your business can successfully achieve the goals it sets out.
As a business it is important to have a clear direction of the tasks and responsibilities you want to achieve. Having a plan in place can not only motivate your team towards the vision you set out to achieve, but also improve your chances of financial success. An operational plan is like a map that can help to navigate your business towards specific goals, and to overcome the obstacles that may arise along the way.
For legal advice and services that can assist with running your business, get in touch with a business lawyer.
What is an Operational Plan?
An operational plan sets out the tasks that a business needs to perform in order to reach a certain outcome. It is a blueprint of sorts, outlining the business’s current performance, while implementing the management strategies that are needed to succeed.
A good operational plan will identify:
What key actions need to be completed to fulfil the goals you set out to achieve? It is important to detail the specific activities and events you wish to implement in order to reach your objectives. For example, your business may want to execute marketing strategies that focus on product, pricing and market position.
Set a reasonable ‘due date’ for each goal. Timelines are vital. Setting goals and mapping out projects within a reasonable timeframe will help you avoid unnecessary and substantial delays.
Is there a budget summary? What financial and material resources are required to complete each goal? A clear and comprehensive budget is a useful way of preventing your business wasting money and resources.
Who is responsible for managing or undertaking each action? It is recommended to appoint a project manager to ensure that all tasks will be achieved in a timely manner and within budget.
Indicators show progress by identifying what a successful action looks like. A performance indicator should be specific and measurable, for example, an ‘increase in website subscribers by five percent.’
A backup plan
Do you have a backup plan in place in case circumstances change? What is the potential for the strategy to not succeed and how can you manage this?
Why do I Need an Operational Plan?
Without a map, or a clear and common direction, your business’s path to success will be more complex and challenging. The purpose of a plan is to promote business efficiency and team focus. Through sensible planning and the management of resources, a business can grow from startup to success. Not only will a good plan provide your team with a clear picture on how to reach business objectives, but it can provide a foundation as to the allocation of tasks and responsibilities, the running of the budget, and how progress will be reviewed and measured along the way.
It is important to recognise what is required for your business to improve and succeed. To positively influence the running of your business, set out a plan that identifies clear and reasonable targets. Retaining this focus on a day-to-day basis, and continuing to review and amend any strategies that occur, will ensure that your business stays on track towards the goals you created from the outset.
If you require legal advice or services tailored to your business’s legal needs, contact a business lawyer through LawPath.
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Sydney is a Paralegal at Lawpath working in our content team, which works to provide free legal guides to enhance public access to legal resources. With a keen interest in Tort and IP Law, her research focuses on small businesses, and how they can better navigate complex legal procedures.