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

  1. Set three outcomes
    Growth, margin and mix, and cash.

  2. Write annual targets and quarterly milestones
    One number per outcome and one milestone per quarter.

  3. Choose the few cross function projects
    Limit to what the team can finish.

  4. Assign owners and budget
    Name one owner per project and confirm spend and headcount.

  5. 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

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