Part 2: The Operating Plan of The Business Plan
The Stage of Development part of the operating plan can be thought of just as an overview, but the Production Process section explains your business’ details of everyday operations.

Your goal for writing the Production Process or the operating plan is to demonstrate that you understand the manufacturing and delivery process for your product or service. You need to let your readers know that you know what your doing and how you are going to do it.

You need to include these details in your business’ operations:

General: Make an outline of your business’ everyday operations. This will include your hours of operations, and what days you will be open. If you business is seasonal, make sure you mention that as well.

The physical plan: What type of premises are they and how big is it and where is it located? If you can, include drawings of the building, copies of the lease agreements, and recent real estate appraisals. You need to be able to show how much the land or building is worth that is required for your business, and also explain why they are important.

Equipment: Describe what and how much equipment is necessary, and also include how much it costs and explain any financing arrangements.

Assets: List all of your assets such as:

• Land
• Buildings
• Inventory
• Furniture
• Equipments
• Vehicles

You will need to include any legal descriptions as well as how much each asset it worth.

Special requirements: If your business requires any special requirements such as drainage, water, ventilation, or power needs, provide these details in your operating plan. Also explain what steps you have taken to secure the necessary permissions, such as zoning approvals.

Materials: Explain where you are going to acquire the materials needed to produce your product or service, and describe the terms in which you have negotiated with your suppliers.

Production: Explain when you will be able to start producing any product or service and how long it takes to produce. You want to include any factors that may delay your time frame of productions, and how to deal with any problems such as rush orders.

Inventory: Explain how you will keep track of your business’ inventory. Will you be doing a physical count or will you use computers and bar codes?

Feasibility: Describe any price testing, prototype testing, or product testing you have tried on your product or service.

Cost Explain the details of how much your product costs.

If any of these topics don’t apply to your business you can leave them out. Also make sure you write this part of your operating plan of the business plan under the headings listed above. You can use subheadings too.

Once you have finished the operating plan, you will not only have a detailed operating plan to show the whoever is reading your business plan, but you will have a list of what needs to be done to make your business part of reality.

Tags: Business Business Plan Business Planning Venture Capital Venture Capitalist Entrepreneur Operating Plan Operating Production Process

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