Introduction
The proposed virtual business named Copious.com and aimed at selling online party supplies is a profitable project. In order to convince angel investors of its feasibility, it is vital to present the planned operations and finance strategies to receive funding. Therefore, the company will succeed if the virtual team manages to elaborate thoroughly on the essential strategic components of activity and provide comprehensive financial data.
Components of an Operations Strategy
The first consideration is the principal components of an operations strategy, which should be clearly defined for inspiring confidence in the investors. In the case of Copious.com, they include the production system, facilities, design of items, technology, resource allocation, and layout (Blaschke et al., 2017). Thus, a competitive advantage can be ensured if all these elements are developed. It means that the virtual team should include them in a strategic business plan and explain how these aspects can affect profitability in the long run.
A Service Blueprint and its Importance
Another area, which deserves particular attention when proposing a new project or, as in the situation of Copious.com, a new business, is a framework of a service blueprint. This concept means that a company should visualize the essential operations and optimize them for a better experience for all participants and clients (Blaschke et al., 2017). It is usually presented in the form of a diagram, which depicts the connection between the components identified above and the efficiency of their combination during the work process (Blaschke et al., 2017). A service blueprint is important for the strategic business planning process because it shows the investors how managers are going to address emerging challenges when some elements are not functioning properly.
A Sales Forecast and an Operating Budget
The task, which follows the definition of components and their operation through applying a service blueprint model, determines sales forecasts and operating budgets. These notions reflect on the financial aspect; meanwhile, they are different in their purposes. Thus, a sales forecast is the expectations of business owners regarding future profitability, whereas an operating budget is a plan developed to achieve specific goals (Ni et al., 2019). Both concepts are vital for the company’s future and advantageously complement each other.
Projected Balance Sheets, Profit and Loss, and Cash Flow Statements
The above financial factors are accompanied by projected balance sheets, profit and loss, and cash flow statements, which are important for the strategic business planning process. Thus, the projected balance sheets show the type of assets owned by the company and their value, whereas profit and loss reports demonstrate the corresponding indicators over a period of time (Anil et al., 2019). In turn, cash flow statements contain information regarding funds related to the operation, investment, and taxes (Anil et al., 2019). These documents are essential for understanding the expected business’ position on the market.
The Importance of Financial Projections
The final consideration, which is essential for the strategic business planning process, is financial projections. They imply a combination of all the documents identified above, which are connected to the company’s forecasts with regard to profitability (Anil et al., 2019). In other words, it means forecasting outcomes and expenses of Copious.com, which can be used by potential investors (Anil et al., 2019). This aspect is critical for their decision-making process since they are guided mainly by financial indicators when investing in new businesses.
Conclusion
To summarize, the managerial controls and processes when presenting the data concerning Copious.com include comprehensive financial information and operations. In this case, the former is more important because it serves as the basis for investors’ decisions. Thus, it can be concluded that a thorough analysis of expected profits and their efficient presentation with the inclusion of strategic components is the key to receiving funds while protecting everyone’s interests.
References
Anil, M., Lakshmi, Y. K. N., & Scholar, P. (2019). Cash management. Complexity International Journal, 23(2), 349-353. Web.
Blaschke M., Cigaina M., Riss U. V., & Shoshan I. (2017). Designing business models for the digital economy. In G. Oswald & M. Kleinemeier (Eds.), Shaping the digital enterprise (pp. 121-136). Springer.
Ni, Y., Huang, P., Chiang, P., & Liao, Y. (2019). Cash flow statements and firm value: Evidence from Taiwan. The Quarterly Review of Economics and Finance, 71, 280-290. Web.