Operational
Plan: Business Plan Basics
The 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? Office, warehouse, manufacturing,
or a combination? 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 appendices of your business plan.
Equipment
Outline and describe the significant
equipment needed, including cost. What does the equipment
do, how do the pieces function together, and 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.
Labor
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? Will you run multiple
shifts? What are your hours of operation? What criteria is
used to locate and hire quality employees?
Manufacturing
& Service Process
Walk the reader through your
manufacturing and service process from raw material through
finished product. Where will you obtain and store raw materials?
Outline your key suppliers, the purchasing process, and unique
purchasing requirements. Where will finished goods be stored,
and what is the associated space and cost? How will finished
goods (or services) be distributed? What is the lead time
for the entire process? How will quality be measured, controlled,
and improved? Explain the technology requirements for your
manufacturing process.
Other Issues
to Consider:
- How will you keep track of inventory?
Provide specific procedures and equipment used.
- 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.
For more information about preparing the operational section
of a business plan, check out:
Email us at BizPlanIt if you have comments or suggestions
about our Virtual Business Plan.
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