OPERATING PLAN TIME-LINE:

Complex businesses should include a topic under the operating plan entitled "Time-line".   The time-line will discuss, in sequential order, all major procedures, activities, and events that must occur before the business can open its doors. The purpose of a time-line is twofold. First, it forces the entrepreneur to plan each operational activity necessary before the business can open.  Secondly, it provides an indication to investors on the steps the entrepreneur must take in order to turn an idea into a fully functioning business.

Since specific procedures, operational activities, and events vary from business to business, it is impossible to provide you with a specific structure for the time-line section. We can, however, provide you with examples of typical operational procedures, activities and events that may need to occur before a business can open its doors. These examples are as follows:

• • when equipment will be purchased and installed
  • when initial inventory will be received
  • when renovations will occur and be complete
  • when general supplies will be purchased
  • when a facility or business location will be leased or purchased
  • when will managers be hired
  • when employees will hired and trained
  • when patents, trademarks, and copyrights will be finalized
  • when correspondence will be printed
  • when business licenses and permits will be purchased
  • when operational systems will be installed (inventory control, accounting systems)
  • when will the opearting plan commence relative to other activities within the business plan.

You may also decide to provide a graphical version of all major operating planning procedures, operational activities, and events. A graphical version provides an easy visual for readers of business plans. The following illustrates a typical time-line.

The following time-line graphical depicts the timing of major procedures, activities and events. Lets end this section by summarizing the operating procedures, activities and events outlined in the above graphical time-line.

1.   A production facility will be purchased in early July

2.   Renovations will commence in July and end in mid January

3.   Equipment will be ordered in August

4.   The startup inventory will be order in October

5.   The inventory is scheduled to be received in December

6.   General supplies will be order and received in December

7.   The equipment ordered in August will be received in February

8.   The staff will be hire in March

9.   Training of staff will begin in March and be complete on opening day

10. Operations is scheduled for May (11 months later)

Buy/ Renovate
Facility ______________ 
                                            Order & Receive 
                                 |------------Supplies------|                  Hire & Train 
                                                                      |----------------Staff-----------------------|
                                                                                       |                                                            |
            Order                   Order                Receive      |             Install                                 Begin
------Equipment -------Inventory--------Inventory --|-------Equipment-------------------Operations

July      Aug         Sept     Oct       Nov      Dec       Jan        Feb      Mar         Apr         May

                                                MONTH

The above time-line graphical depicts the timing of major procedures, activities and events. Lets end this section by summarizing the procedures, activities and events outlined in the above graphical time-line.
 

1.   A production facility will be purchased in early July

2.   Renovations will commence in July and end in mid January

3.   Equipment will be ordered in August

4.   The startup inventory will be order in October

5.   The inventory is scheduled to be received in December

6.   General supplies will be order and received in December

7.   The equipment ordered in August will be received in February

8.   The staff will be hire in March

9.   Training of staff will begin in March and be complete on opening day

10. Operating plan implementation is scheduled for May (11 months later)

For more information relating to the Components of the Operating Plan, please refer to section entitled Operating Plan.