Implementation Strategy and Operating Plan

advertisement

C

OMMUNITY

F

ACILITY

P

ARTNER

C

APITAL

G

RANT

(CFPCG)

APPLICATION Part E – IMPLEMENTATION STRATEGY AND OPERATING PLAN

Implementation Strategy and Operating Plan

To be included with CFPCG application as an attachment This is a sample of an Implementation Strategy and Operating Plan – other formats may be submitted. Purpose of the Implementation Strategy and Operating Plan:

The reason for writing the Implementation Strategy and Operating Plan is to ensure that those approving the business case understand the resources they must allocate (people, dollars, time) to complete the recommended next steps of the project and implement the operating model. The Implementation Strategy and Operating Plan provides the details for the capital development and the ongoing operations and maintenance.

Description:

Outline the proposed implementation plan for the recommended next steps at a high level. Enough detail should be provided so that those approving the business case understand the resources needed to complete the recommended next steps of the project. The plan should include: 

Project Schedule;

Five-year Operational Plan;

   

Management Plan; Capital Costing required to carry out the capital project; Capital and Operating Financial Plan; and Marketing Plan.

A. Project Schedule and Projected Phase Cost

Outline the project schedule including the major project phases, high-level work plan and the identification of the project deliverables with the associated start and end dates for each. Details regarding the capital funding process and timing, construction timeline, and opening date should be included. Furthermore, the project schedule should also include additional steps such as – fundraising, technical studies, potential phasing, permits, tendering, public consultation etc. Example: PLANNING: 1 2 3

Principal Phases

Assessment & Testing Obtain City approval Write Detailed Business Case (design/build phases) DESIGN/BUILD:

Est. Cost Duration

$50,000 4 months $10,000 4-6 months $15,000 6 months

Start Date

Spring 2015 Fall 2015 2016 Winter 2015- Revised: February 13, 2015 File: 726947562 Page 1 of 4

1 2 3 4 5 6 7

Principal Phases

Concept* phase planning

(*see Guide for description of phase work)

Design phase planning Construction phase 1 (foundation, outer walls & roof) Construction phase 2 (electrical, plumbing, HVAC) Construction phase 3 (complete interior) Project completion Facility Opening/Re-opening

B. Five-year Operational Plan C

OMMUNITY

F

ACILITY

P

ARTNER

C

APITAL

G

RANT

(CFPCG)

Est. Cost Duration

$200,000 4 years $1,000,000 18 months $2,500,000 8 months $1,500,000 4 months $1,000,000 6 months $5,000

Start Date

2011 Fall 2014 Spring 2016

Five-year Operational Plan

This section is less relevant for planning projects but provide a brief overview regarding the future situation to the extent known at this time.. The five-year operational plan deals specifically with the internal operations and equipment necessary to produce your product or service. The following are selected areas that need to be addressed in this section.

Location

Where will your business be located? What square footage is needed, in how many locations? What type of space is it? What program elements included? What is the advantage, if any, of your location? At what point will the goals of the business exceed the above mentioned facilities? Provide a layout of your facility in the appendix of your business case.

Equipment

Outline and describe the significant equipment needed, including cost. What does the equipment do? How do the pieces function together? How much can be produced? Will you purchase or lease your equipment? Why and from whom? Be sure to include manufacturing equipment, vehicles, computers, and office equipment.

Staff and operating costs

How many employees will you need? Full-time? Part-time? Break them out by function, number of hours worked, and hourly pay. Describe the skill sets needed. What are the salaries of those in management, production, distribution, sales and administration? What other workforce costs need to be calculated WCB, insurance, benefits, union costs? Will you run multiple shifts? What are your hours of operation? What criteria are used to locate and hire quality employees? What professional support is required and how will you obtain these services (i.e., accountant, lawyer, etc). Outline your net operating costs, showing either a profit or loss; and the profit distribution or loss management plans.

Revenues by Source

What rates and fees will you charge? Provide proof that these fees are viable in the market.

Capital Reserve Fund

Revised: February 13, 2015 File: 726947562 Page 2 of 4

C

OMMUNITY

F

ACILITY

P

ARTNER

C

APITAL

G

RANT

(CFPCG)

Outline how the capital reserve fund (2% of the replacement value of the Facility, adjusted to market value) will be managed and define what will be eligible expenses for this fund.

Other Issues to Consider

 How will you maintain quality control? What are the procedures to ensure that you are providing the  top quality product or service? What type of insurance does your business need? Discuss the legal liability issues of your business.

C. Management Plan

Management of any business directly correlates with the organization’s success or failure. Highlight information that demonstrates you have the ability to make this project a success. Important management issues are training, experience, and, most of all, the character of those involved in the management of this venture. For a planning project, this section must show that your organization has the capacity to both manage a capital project and to operate and maintain the capital asset once the capital project is complete. List each of the management and / or board of directors, list their names, titles, roles and responsibilities, experience, and length of contract, if any. Include an organizational chart, management contracts and reporting relationships. If you have not established key management positions include a recruitment plan with costs.

D. Detailed Capital Costing

The detailed Capital Project Costs for the project are required in the form of a quote(s) by qualified professionals. Include these as attachments with your application. For a planning project, you must indicate the costing for the components of the planning phase project.

E. Capital and Operating Financial Plan

Capital and Operating Financial Plan – Overview The Capital & Operating Financial Plan should clearly outline such factors as how the capital and operating costs will be managed; any expected City contributions, including capital financing, land and operating support and division of responsibility for infrastructure maintenance during the life of the project. Of interest, the City requires a Capital Reserve Fund for most facilities with an annual contribution of 2% of the replacement value of buildings, adjusted to market value. Include evidence of any application to, and/or, commitment from, other levels of government or other sources of funding. The Capital & Operating Financial Plan includes a 12-month profit and loss projection, 3 to 5 year projected balance sheet and 3 to 5 year projected income statement. 1. Include a 12 month profit and loss projection; 2. 3 to 5 year projected balance sheet; 3. 3 to 5 year projected income statement. Together these 3 measures (showcase on a spreadsheet) represent a reasonable estimate of your organization’s financial future. More importantly, however, the process of thinking through the Capital and Operating Financial Plan will improve your insight into the inner financial workings of your organization. The profit and loss projections should be accompanied by a narrative explaining the major assumptions Revised: February 13, 2015 File: 726947562 Page 3 of 4

C

OMMUNITY

F

ACILITY

P

ARTNER

C

APITAL

G

RANT

(CFPCG)

used to estimate the organization/company income and expenses. The Capital and Operating Financial Plan should include a contingency. The completed Capital Operating Financial Plan is a valuable operating tool for your organization and an important part of the evaluation of your project. It should represent your best estimate of future operations.

F. Marketing Plan

Every good marketing plan should include two major parts - a definition of your target market and a specific outline to market, promote and sell your product or service. Should include a fundraising feasibility plan for large capital projects, and public consultation plan.

Target Market

It's critical to clearly define your target market in your business case - investors expect it. Describe your customers and their defining characteristics in detail. Include information such as age, gender, geographic location, income bracket, buying similarities, and more. The goal of this section is to build a demographic profile of your typical customer. The more clearly you pinpoint the defining traits of your customer, the easier it is to construct a marketing program to reach them effectively. The information and research included in your target market section should originate from primary and secondary sources. Primary sources include information that you discover or conclude from personal observation and research, such as personal studies, results of questionnaires, site visits, and conversations with experts in your industry. Secondary sources include such sources as journals, books, published reports, government statistics, or internet findings.

Marketing Program

After you define your target market, you need to determine specifically how you will reach them. Outline the details and steps necessary to reach potential customers and convert them from prospects to paying customers. It is important to demonstrate to investors that you have identified specific marketing avenues and procedures to effectively sell your product or service. Answer questions such as the following in your marketing plan section: 

What specific marketing mediums will you use to reach your customer?

How often will each be used? What will they cost? Why did you choose these marketing

   

avenues over others? What marketing materials will you need (brochures, website, etc)? Who will design your marketing materials? What will they cost? What is the cost of marketing materials per prospect or client? (You may choose to include marketing pieces in the appendix of your business plan). Will your company be able to attract PR? Why will they run your story? What's the "angle"? Which publications and mediums will you target?

Revised: February 13, 2015 File: 726947562 Page 4 of 4

Download