Build the annual operating plan

Who this is for

Founder led lower middle market companies with 5 to 50 million in annual revenue.

The quick answer

Put targets for revenue, margin, and cash on one page. Add three company objectives with owners and quarter by quarter milestones. List the few projects that support those objectives. Match the budget to the plan.

The framework in five steps

Set three outcomes
Growth, margin and mix, and cash.
Write annual targets and quarterly milestones
One number per outcome and one milestone per quarter.
Choose the few cross function projects
Limit to what the team can finish.
Assign owners and budget
Name one owner per project and confirm spend and headcount.
Publish and review
Share the one pager and review progress monthly.

Example

A company at fifteen million wrote three outcomes and nine milestones. They funded five projects. The plan fit on one page and guided weekly choices.

Pitfalls and fixes

Too many projects. Limit the list.
Vague owners. One owner per project.
Budget that ignores the plan. Match dollars to priorities.

Checklist

One page plan
Three outcomes with targets
Milestones by quarter
Five or fewer projects with owners
Budget aligned