Operational Plan Business Plan

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And it’s different depending on whether you’re a manufacturer, a retailer or a service firm.

The basic rule for your operations section is to cover just the major areas—labor, materials, facilities, equipment and processes—and provide the major details—things that are critical to operations or that give you competitive advantage.

That’s not to say operations are any less important for retailers and service firms.

But most people already understand the basics of processes such as buying and reselling merchandise or giving haircuts or preparing tax returns.

Business plan readers look for strong systems in place to make sure that personnel and materials are appropriately abundant.

In your operations section, don't go into too much detail -- stick to the important processes, those essential to your production or that give you a special competitive advantage and be sure you show that you have adequate, reliable supply sources for the materials you need to build your products.You’ll want to include background information and, if possible, describe employment contracts for key employees such as designers, marketing experts, buyers, and the like.You’ll want to walk the reader through the important tasks of these employees at all levels so they can understand how your business works and what the customer experience is like.Manufacturing a product naturally requires equipment. Naturally, investors are very interested in your plans for purchasing equipment.Many plans devote a separate section to describing the ovens, drill presses, forklifts, printing presses and other equipment they’ll require.You'll also need to include information on how you'll ensure a reliable supply of adequately trained people to run your processes.You’ll first need to estimate the number and type of people you'll require to run your plan.Once the initial task listing is complete, turn your attention to who's needed to do which tasks.Keep this very simple and concentrate on major tasks such as producing a product or delivering a service.So you don’t have to do as much explaining as, say, someone who’s manufacturing microprocessors.For service and retail firms, people are the main engines of production.

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