A critical component of your business plan is a strategy for managing your company’s operations. A comprehensive operations plan needs to answer the following questions:

  • Operations strategy
    • How will operations add value?
    • What will you emphasize – cost, quality, timeliness, flexibility?
    • Does your process give you a competitive advantage?
  • Scope of Operations
    • In-house or outsource?
    • Product and process design?
    • Order fulfillment?
    • Customer service/technology support?
    • Installation?
  • Describe how you will get off the ground running as a business
    • Product/process development
    • Intellectual property
    • Rollout strategies – regions, products, channels
    • Marketing strategy – advertising launch, activations, online
    • Agreements with key customers/partners
    • Strategic alliances
    • Facilities and equipment installations
    • Market tests or beta tests
    • Key hires
  • Describe the initial management team for the business
    • Background and experience for each management team – a strong start off management is vital for investors
    • Any holes in the management team? If so how do you plan to address it?
    • Board of Directors or Advisory Board?
    • Organizational chart
    • Ownership structure
    • Corporate Social Responsibility/Impact Investing

In summary, an operations plan should describe the process for producing and delivering your product/service and is a critical element of your business planning exercise.

Read Also: Key Components of a Business Plan I