Operations Plan

The operations plan describes how you will conduct business and who will handle day to day operations. Depending on the size of business you are seeking to start, this could be just yourself, or it could be a hierarchy of personnel within your organization.


You may want to include the following sections in your operations plan:


Day to Day Operations

Provide a brief overview of your day to day operations, such as; hours of operation, who are the key players and what are their responsibilities.

Method of Service Delivery

If there is a production process involved; where will the plant be located, how much it will cost, how will you get product to the plant and how will you get it out (train, truck, etc.). If your business doesn't require production, provide as much information as you can about the physical location, funding requirements, and what you will need and how you will get it and distribute it.

Physical Requirements

State what equipment you will need to fulfill your activities. What kind of machinery or tools will you need? If you are a service based company, what software will you require? You will want to state the costs necessary to acquire these items and what sort of life time they have. If you will require other assets, such as if you are running a restaurant, how many tables, chairs, cash registers will you need? Additionally, if you are completing a production process, state what materials you will require to manufacture your product and state where you will acquire these materials. Have you solicited overseas manufacturer's for pricing? Have you spoke with an import/export broker to check with the process of getting the materials to your location?


Explain your production process from raw material to final product. How many units do you anticipate selling, how long does it take to manufacture, how many items will you have on hand manufactured and waiting for sales. Will you have unsold inventory on hand, or will you manufacture as sales are generated? Discuss inventory levels and how you plan to maintain/track your levels.

Availability of Qualified Labor Pool

Provide information on how many people you will need to hire, their experience/knowledge base if required, and how you will find them (will you use a hiring firm, advertise online/newspapers, career fairs, etc.).

Quality Control

What will you do to ensure quality? Will you have a process in place to sample products as part of the production process? Will you offer extended warranties? Will you require technical experts to review your process? This section will describe what you will do to ensure quality.

Customer Support

How will you set yourself apart from your competition? Often customer support/service is THE difference between you and your competitor. You will find that people will leave the competitor for you over one poor experience with customer service. Will you offer face to face time to explain your product, will you have pamphlets, online support, phone support... this area will require thought and you should outline a clear support objective to review what your requirements will be.


Operations Plan Example

Method of Service Delivery

Solar panels will be delivered to SI Co from Advanced Energy Solutions via UPS. They have a minimum order of $200 on most items. Most items are in stock, ready to be shipped within three days. They prefer to ship by UPS, but can ship by Parcel Post if it is more convenient. Unless otherwise specified, shipping, handling, and insurance charges in the continental U.S. are estimated to be around 5% of the order but are based on where it’s being shipped to and the weight of what is being shipped (http://www.advancedenergysolutions.com). SI Co will deliver the solar panels to its client’s locations through the use of two company trucks, which have already been purchased. SI Co will perform installations every day but Sunday from 7:00am- 5:00pm.

Availability of Qualified Labor Pool

SI Co has a vast amount of experience in the electric field. Brendon Trip has 14 years in the business and his father has 25 years in the business. Through their familiarity with the local IBEW, they will have access to union electricians. These electricians can be utilized for jobs that require additional labor above and beyond the father /son team. The licensed electricians acquired from the IBEW can be called out on a temporary basis, which will eliminate the need for permanent employees on the SI Co payroll. SI Co’s owner Susan Trip brings years of experience in the electrical industry. She will perform multiple administrative duties at the Dorsey office including the company’s bookkeeping, purchasing, and marketing.

Continue reading this Operations Plan example.


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