In a business plan, the operations plan section is where you discuss what is physically needed for your business to run successfully. Examples of these are the Physical Location of your business, the physical facilities that you need along with the machinery and equipment. Of course, your operational plan will depend on what type of business you do. For Example, An operation plan for a software company is not going to be the same as the operational plan for a catering company.
In the software companies operational plan there might be no inclusion of any kind of physical necessities except the software engineers and employees. Many software companies do not even have a physical office and follow the work from home system. But the catering service has to include their physical necessities such as the ingredients for cooking, the dishes for serving. They might even include the inventory requirement in the operational plan. To have an organized and functioning business plan you need to include the operations plan section. Carry on reading to know more about writing the operations plan section of the business plan.
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Writing the Operations Plan Section of the Business Plan
Why is Operations Plan Necessary?
There are a lot of benefits to a good operation plan which we already discussed. But one of the key things about the operation plan is it lets you know what you need to complete. A good operation plan answers who is responsible for the business, what is the job of each person or team, where they will be operating daily when they will be completing the tasks and how much is it going to cost them for completing all of their objectives.
A good operational plan will explain the goals and objectives. This will in turn help motivate the employees because they know their objectives and goals. Two things are required in the operations section in your business plan. One is you need to tell the reader of your business plan what you have achieved so far. You need to illustrate the steps you took and the methods you used to build your company from the ground up.
Another thing you need to show is a clear understanding of how your product is being made or how the service is being delivered. This process should be explained clearly so that anyone reading the operation section of your business plan understands. There are two parts to a good operation plan. They are the Development Stage and The Production process.
The development stage explains what you have reached and done so far in your business. You need to explain all the necessary progress and development your business has gone through until the day of writing. Ask yourself what stages your business went through to become fully operational? Then answer this question thoroughly leaving no detail.
A Workflow for the production process:
In this section of the operational plan, you need to mention how your product is made. Every step of the production process needs to be mentioned properly. The problems that you may encounter in the production process needs to be highlighted. Then highlight the solution when you encounter such a problem.
Employee risk management:
If a specific production process can cause health risks to employees, you need to mention how you are dealing with this issue. For example, You can provide additional training to employees so that they can avoid any physical damage while working. Also, you can offer insurance for employees who will suffer any kind of damage while working in this production process.
Control of the Quality:
Explain how you are going to maintain the quality of your product and work environment. Mention if you are going to apply for any kind of quality assurance certification such as ISO 9000.
The development part explains what you have done so far to make your business operational. But the production section of the Operation plan talks about how you produce the service or product every day.
The basic guidelines go through what happens in your production process day today. Like how long you operate and the days you do business whether you do business throughout the whole year or if the business is seasonal.
The Working Area
Describe the working area you have. If it is a production plant or an office with desks, there could be no physical working area for your company too. So, make sure to mention how you do your work.
The resources depend on the type of business you are. For example: If you are a call center company, your resource is the call center agents you have. Whereas if a business that makes sweaters, the wool is a resource too,the resources depend on the type of business you are operating. So, mention the resources needed for your business.
Mention how long it takes you to produce a certain product. If your product is your service to the customers mention how long it takes for you to provide that service.
The expense needs to be mentioned. The cost of the production of your product or service is the expense. Give me an estimate of the expense for the production process.
It is always important to ask questions when you are writing the operation section of your business plan. Remember, if you are not asking the hard questions when you are planning your business. Then you will have a hard time finding the answers when you are faced with those scenarios in real life.