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

Split front office/back office

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 may be very obvious what kind of activities and transactions need to take place here, in front of the customer, but don’t forget that money can be saved by taking care of other activities out of sight of the customer or even in another location. There is a lower cost associated with building the spaces that are not in view of the client (whether it be physical locations or the back-end of a website) because aesthetics are not a big concern. If certain tasks don’t have to be done while customers wait, they can be done in batches in the back-office, keeping overall costs down.

Performance management

Performance management is applicable in companies where the service being sold is a fixed and perishable resource, such as airplane seats or hotel rooms. Yield 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 moment the sale is made. For example, the Bolt Bus, an East Cost bus service between major cities, sells at least an advance seat on each bus for $1, with prices constantly increasing as travel dates approach and popularity increases.

process analysis

Certain processes will become key 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 necessary. By looking at the wait process, the service time for each customer, and the volume of customers you wait, you can determine the right number of check-ins and queues to maximize your revenue.

Leave a Reply

Your email address will not be published. Required fields are marked *