Service Business Plans – Operations Concerns

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 desk, or its equivalent. It may be very obvious what kinds of activities and transactions need to happen here, in front of the customer, but don’t forget that you can save money by taking care of other activities out of the customer’s sight or even elsewhere. There is a lower cost associated with building the spaces that are not in view of the client (be it 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 costs down overall.

Performance management

Yield management is applicable in companies where the service being sold is a fixed and perishable resource, such as airline 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 Coast bus service between major cities, sells at least one advance seat on each bus for $1, with prices rising steadily as the travel date approaches and popularity grows.

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, waiting time management is necessary. By looking at the waiting process, the service time for each customer, and the volume of customers you expect, you can determine the correct number of check-ins and lines to maximize your revenue.

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