Basic Business Plans – Operations

Basic business plans typically include an Operations portion. In this section, you'll cover 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