This can also be referred to as the long term processes.
When writing the operations section of a business plan, you should endeavor to cover major areas such as labor, materials, facilities, equipment and processes.
In both areas, it is important to be aggressive but credible.
Presenting a plan that presents the company as growing too quickly will show how naïve the management team is, while presenting a too conservative growth plan will often fail to excite the potential investor who will require a higher rate of return over a relatively short period of time.
Every company has certain delineated processes to provide its customers with the best products and services.
For instance, Walmart has a unique distribution system that will enable it to effectively move products from its warehouses to its shelves and then ultimately to the homes of its customers.
The second part of the operations plan is proving that the team will execute the long term company vision. On the left side, list the key milestones that the company must reach and on the right, list the target dates for achieving each of the milestones.
These new millstones should include expected dates when new products and services will be introduced into the market place, when revenue milestones will be attained (for instance, when sales will exceed the million dollar mark), key partnerships will be executed, key customer contracts will be secured, key financial events will occur (for instance, future funding and IPO’s) and when key employees will be hired.
Operation is a broad field and it is covers sourcing of raw materials, hiring employees and staff, acquiring facilities and equipment and shipping the finished goods.
These can vary depending on if you are a manufacturer, a retailer or a service firm.