How to Write the Operations Section of Your Business Plan
The operations plan covers what makes your business run. It explains the day-to-day workflows for your business and how you will deliver the product or service that you offer. As part of your plan, it’s your chance to describe what you’ve set up so far and that you understand what is still left to make your business fully operational.
How to write about business operations
Like some of the other sections in your plan, the information you include fully depends on your type of business. If you run a subscription box service you’ll need to cover how you source and fulfill each order. If it’s a service-oriented business (like a mechanic or coffee shop) you’ll need to go into more detail about your location as well as the tools and technology you use.
The important thing is that the information here fully addresses how your business runs.
What to include in your operations plan
The components of your operations plan fully depend on what’s necessary to produce your product or service. For most, you’ll be adding details about your location and facilities, the technology being used, and any equipment or tools.
Location and facilities
The information you include about your business location fully depends on the state, city, and neighborhood you’ve chosen. This will determine the specific taxes, registration, licenses, permits, zoning laws, and other regulations you’ll be subjected to.
Once you’ve legally established your business be sure to reference the relevant paperwork and legal documentation in this section. You may also want to point to mockups of the building, copies of legal agreements, and any other supporting documentation for how valuable the property is and how it helps your business function.
Sourcing and fulfillment4 Min Read
How will you create your product/service and what will it cost? You’ll include detailed breakdowns in your financial plan, but here you’ll talk about what it will take, who you will work with, and any alternatives.
How and when to write about technology6 Min Read
Is your product or service driven by a specific technology or process? Let investors, banks, or other necessary parties know why it’s a valuable part of your business.
Why you need an operational plan
Understanding your business operations makes your processes real. It ensures that you have organized steps in place to produce a product or service.
For investors, this helps prove that you know what you’re doing and can back up the rest of your plan with actual work that makes it happen. For you as a business owner, it’s a starting point for optimization. You have a blueprint for how things work. And as you run your business, can begin to identify opportunities for improvement.
If you don’t cover operations as part of your business plan, then you’re flying blindly. There’s no documented process for how things should work and no connection to the other strategic elements of your business.