In this section you are going to describe your business operation on a day to day basis. It is different and unique for each and every business venture and so you should tailor this part of your business plan to reflect the market you are operating in. But as a minimum you should be discussing your location, production of your goods and services, IT systems and management information systems and although this sounds like a lot it is information you should be comfortable with.
Business Plan: Location
You need to talk about any business property including if it is a room in your home, talk about any long term commitments to this property including rent, mortgage, utilities, telecommunications, include costs and if you are operating out of your home property be sure to assign a share of these. For example if your property has 6 rooms and you use 1 for your business then 1/6 of all costs should be associated with the business. You need to talk about the advantages and disadvantages of your current location and very briefly discuss any expansion plans.
Producing your goods and Services
You need to explain how you are going to manufacture your goods, will you own your own facilities or will it be more financially feasible to outsource these services? If you do own your own discuss the quality and how modern they are, are they easy to expand in volume should the need arise do you have a maximum volume and what is it, how does this compare with your forecasted demand? How will you deliver if the demand exceeds this volume? Do you need any investment in infrastructure? If you do not own your own, who will be your suppliers, discuss any relevant pricing and details about them here.
Business Plan: IT Systems
In today’s business environment IT is almost always an important considerations so discuss your requirement s and include your current strengths and weaknesses and how you are going to tackle your weaknesses. You need to go into detail about your systems reliability and any planned development of your systems and what benefits this will bring your company and ultimately the customer. Focus on
- integration with existing systems
- innovation and software development
- Back up and redundancy measures
These are all important factors in today’s business environment and should be addressed.
Management Information Systems
Describe your procedures for stock control, management accounts, quality control, customer satisfaction, sales, marketing, records, data handling, confidentiality, refer to current legislation and detail any certifications you have or are going to aim for with dates for example ISO:9002
Can they cope with any expansion of the business and are they scalable. Also discuss any audits and reviews of current processes and procedures you have in place to ensure they are current and the most effective for the job they control.