Your Operations Plan: Gearing up for Growth
Your Evolving Operations Plan
As your business grows, your budget and operations plan will change as well. An unfortunate situation that some business owners find themselves in is referring to an out-of-date operations plan in a contingency situation. Don’t let this happen to you.
Growth, Staff, and Ducks
The majority of small businesses in B.C. are started by self-employed individuals. As a business grows, hiring staff is often the first major step an owner will take to expand.
As a new entrepreneur, you might believe an operations plan is unnecessary if you employ only yourself, which might very well be the case. However, once a business involves more than one person, the need for clarity and consistency in operations decisions becomes more important.
If you have not yet written an operations plan, now is the time to do it. See our Operations Management–Starting section for tips on writing a plan. Unfortunately, for too many business owners, the realization that an operations plan is needed often comes at a time of unexpected growth and success. The lack of a proper plan will almost always put a damper on your ability to take full advantage of new opportunities. The same situation in a time of difficulty can mean disaster.
The lesson? Get your ducks in a row before a challenging situation occurs.
Featured Product
Dynamics of Business Growth Program
Are you moving your business to the next stage in your business growth? Attend this workshop to find out whether it's HR, sales or operations that you need to help grow your business.
Register today! Contact a client services coordinator at (604) 775-5541 or 1-800-667-2272.
See All ProductsSmall Business BC offers a multitude of services to assist you with growing and managing your business.
- You can register for our Dynamics of Business Growth seminar to learn how to move your business to the next stage in your business growth, using human resources, sales, or operations.
- You can book an appointment with one of our business advisors to discuss your business in detail and strategically plan how to manage your growing business.
Reduce Your Operating Costs
Reduce production costs. Try to negotiate better supplier or raw materials pricing. Streamline production. Barter or trade with suppliers who offer services you need or try a barter exchange like Trade Exchange Canada.
Reduce travel. Use alternative communication tools such as video conferencing, three-way calling, webinars (online seminars), or Skype®.
Look at salaries, wages, and how people work.
- Can you use contractors, who can cost less than full-time employees?
- Consider intern/co-op/work experience staffing and students. They might require some ramp-up time, and you’ll be expected to mentor them, but you’re also growing new team members at a reduced cost.
- Apply for Work-Sharing Opportunities through Services Canada.
- Let employees work from home if it saves on utilities or space.
- Explore alternative work arrangements, such as job sharing.
- Consider a shorter work week.
- Have a pay or bonus structure review.
Consider location. Make sure you’re still in the right location but attempt to get a lower cost per square foot than your existing space. Consider choosing (if it makes sense for your business) industrial space vs. high-priced retail space.
Review your delivery/transportation costs and routes. Is your product delivery being done as efficiently as possible? With more planning, or more "bulk" deliveries, could you be more efficient? Attempt to share costs with other businesses.
Reduce expenses and rationalize all costs. Decrease utility expenses by turning off all equipment and computers at night. Reduce variable overhead expenses. Increase efficiency in your production, or administrative activities.
Make money while you're not there. Sublease excess space or rent space out to a business that operates during different hours than you (for example, consider sharing your kitchen if you’re a caterer, or rent your boardroom for evening gatherings).
Tips by Small Business BC's Advisory Services Team
- Managing Business Growth – Get a Grip on the Numbers that Count
- Managing a Successful Business in Canada
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