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Business Plan Service – Operations Concerns

Your services business plan should include an operations plan that details how the business will function internally. Consider the key issues associated with your specific type of business, which may include one or more of the following:

Front office / back office division

For many types of services, there is a clear “front-end” to the business, consisting of a sales or service counter, or its equivalent. It can be very obvious what kinds of activities and transactions have to happen here, in the customer’s view, but don’t forget that money can be saved by taking care of other activities out of the customer’s view or even in another location. There is a lower cost associated with building the spaces that are not in view of the client (be it physical locations or the back-end of a website) because aesthetics is not a major concern. If certain tasks don’t have to happen while customers wait, they can be done in batches in the back office, keeping costs low overall.

Performance management

Performance management is applicable in companies where a service is sold as a fixed and perishable resource, such as airplane seats or hotel rooms. Performance management helps with pricing decisions to maximize revenue by charging customers based on the value of a service to both the customer and the business at the exact time the sale is made. For example, Bolt Bus, an East Cost bus service between major cities, sells at least one advance seat on each bus for $ 1, with prices steadily increasing as the travel date approaches and popularity increases.

Process analysis

Certain processes will become keys to the success of your business. These will depend on the service you provide. For example, if you provide a retail service, wait time management is required. By looking at the waiting process, the service time for each customer, and the volume of customers waiting, you can determine the correct number of records and lines to maximize your revenue.

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