Whether your business is growing fast and you’re about to be overwhelmed or you want to plan properly for future growth and expenses; an operational plan will determine how much space to rent, who to hire, what equipment to buy, when to expand the phone system, etc.
Supplement Company Strategic Marketing & Operational Planning
A small but growing weight loss supplement business wanted to expand nationally. The management team had no real experience with proactively growing a company and they didn’t want to take attention away from their current customers.
Capacity was engaged to determine exactly how they should market their products and how they should expand both their market share and their internal operations within a limited budget.
A full strategic marketing plan was developed starting with a situational analysis which is the key to getting a return on your marketing dollars. The research done during the situational analysis determined the demographics and psychographics of their perfect customer was women with emotional eating issues. Further research on their competitors determined not only there was room for them in the weight loss market, but that no one was really targeting this psychographic.
The rest of the plan including SWOT analysis, strategy, pricing, positioning, distribution, promotion, etc. laid out a map of exactly how we would go about gaining additional customers in the most efficient manner. There would be no “trial and error” with their marketing effort.
The next step was the operational plan. We determined one location would suffice but growth and future moves to larger facilities needed to be mapped out. Equipment purchases were also mapped out to track with growth. Suppliers & vendors had to be examined to determine if current relationships were ideal and if so, could they grow with the company.
Probably the most difficult parts of growth planning are the personnel plan and the financial projections. Payroll is often one of the biggest expenses a company has. Hiring too soon or too late during proactive growth can create a domino effect that closes the entire operation. The financial proforma allows us project this expense and all others as well as income. It is crucial to efficient planned growth. This company also happened to be looking for funding from investors and Capacity has been retained as temporary COO to handle the funds and growth when the investment is secured.
Working with Eric has been a great experience. I am a newborn when it comes to running and owning a business. Although he has been in business for many years, and has a very advanced understanding of all aspects of business development and growth, he is able to explain things simply and in a way where even the newest of business owners can understand.
When Eric and I first met, I had been doing business for about a year. My plans for the business were not organized, nor did I have an official business plan written out. He was very willing to work with me on my business plan, gave me great feedback with it and taught me how to use it as living document that changes with our business needs and growth. Doing the business plan with him helped me understand its importance to decision making and it helped drive the information needed for the proforma I did with Capacity Consulting.
The proforma is a wonderful excel document that helped me see financial changes from month to month using estimated figures at first, and then substituting the actual monthly figures as the year goes on. This living document drives all decisions I make on spending and helps me time exactly when I should move forward with plans, hiring, expanding, etc. It gives real numbers to look at and takes the guess work out of when or why I should do anything new or different.
I would recommend to anyone who currently owns a business or thinking about starting a business sit with Eric and look at the services he offers. Whether you’ve been in business for 6 months or 20 years, Eric can help you move your business onto to that higher level.
Nanette DeGroat, Owner
Breakthrough M2 Health & Wellness