and Music

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Operations
‘Operations’ is the term used to describe the day-to-day running of the business to produce the
product or to deliver the service offered. It includes everything from sourcing materials, hiring
staff, leasing premises, purchasing equipment and implementing IT systems.
Many operations can be run at a minimum standard and cost thereby increasing efficiency. With
start-up companies, it is often makes economic sense to outsource processes which do not
require the control or expertise of the entrepreneur or that are not sensitive or confidential (e.g.
a newly developed software or invention).
On the other hand, certain operations can be delivered to a standard above what is expected in
the industry. This can give a competitive advantage to the business which could prove critical
in attracting new customers and retaining existing ones. Examples of ways in which this could
be done include:
Providing a distinctively designed interior to a café, restaurant, reception area etc. to
create a certain ambience thereby enhancing the customer’s experience when interacting
with the business.
Increased accessibility or availability e.g. opening earlier and/or later than the
competition
Ensuring products are beautifully finished and presented or packaged.
Having a user-friendly and intuitive website.
Using cutting edge technologies.
Consistently maintaining a higher than expected level of quality control.
Having an excellent customer care and after-sales service.
Training staff so that they are knowledgeable about the product / service.
Holding larger stock so you don’t ever run out.
All of these improved standards will provide added value in the eyes of the customer who, as a
result of their enhanced experience, is more likely to remain loyal to the business. Although
this may result in increased operational costs it gives start-up an edge over the competition and
helps to win over and cultivate new customers.
Financial Review
Now that you have figured out what your product or service will be, done your market research
and planned your operations, the next stage is look at the crucial matter of how you are
performing, or hope to perform, financially.
In constructing forecasts we rely on a number of factors including:
Historical information
Market analysis
Gut feelings