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Basic Business Plans
Operations


   

Basic business plans typically include an Operations portion. This section covers issues that are essential to the success of your business, provide a competitive advantage or help you overcome a problem inherent in your business. Sections may include:

Facilities

  • Note where your business is located.
  • Explain how that location fits with the needs of your business. Working from a home office or studio may reduce costs, for example.
  • Describe issues such as access to parking and accessibility if they are relevant to your business.
  • Indicate whether you will need to make improvements or additions to the property.
  • Note what relevant equipment you own and what equipment will you need to purchase.
  • Describe how your business' facilities will impact your company's success.

Production

  • Evaluate your production processes to find ways to increase efficiency, improve quality and increase profit margins.
  • Indicate how you will handle increased or variable need for production. Will you outsource any labor?
  • Address capacity, that is, the number of items can you produce in a given time period.

Inventory Control

  • Indicate your strategies to ensure you have adequate inventory on hand.
  • Note how you will assess your needs for supplies.

Supply and Distribution

  • Indicate suppliers you will use.
  • Typically, it's wise to avoid being dependent on a single supplier.
  • Select suppliers who meet your needs, whether that's quick shipping or flexible ordering terms. Compare prices among suppliers, but don't rely on price alone when choosing suppliers.
  • Indicate how is your product will be distributed to consumers. Typically, it's wise to try to establish more than one distribution channel.

Order Fulfillment and Customer Service

  • Understand your customers' experience of the order fulfillment process. Is communication clear?
  • Determine how you will handle shipping costs if you ship products.
  • Determine whether you will solicit customer opinions, and if so, how.

Research and Development

  • Indicate how new products will be developed.
  • Describe how you will stay aware of new developments that may impact your company.

Financial Control

  • Indicate processes you'll use for handling your financial information quickly and accurately.

Contingency Plans

  • Describe plans to protect your records and your data including backing up documents and storing data off site.
  • Assess the resources that are crucial to the operation of your business, and determine how you will you safeguard those resources.
  • Indicate any procedures you have in place to ensure the health and safety for your employees and note whether there any health and safety regulations that impact your business.
  • Assess the adequacy of your business insurance.

Additional Resources
Basic business plan outline with links to further information about each section
The Successful Business Plan by Rhonda Abrams book review

 
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