The purpose of including operations and management plan as one of the elements of a business plan is to inform the readers as to how the business proposes to function on an ongoing basis. The details to be covered in this section, therefore, include the internal organizational structure, operations and equipment that are required to run the business and a financial plan. The ownership details, information on the management team, a brief outline of the physical and personal resources needed for the business and an idea of the legal issues that are required to be dealt with shall be included under the relevant subsections mentioned earlier.
Ownership and Management of Operations
The aspects to be covered in this subsection which deals with one of the important elements of a business plan are as follows:
Provide a description of the ownership of the business. Make it clear as to how the business will be managed on daily basis. If it is a partnership business, explain who the partners are, how management decisions will be made and how the issues will be resolved. If the business is organized as a corporation, the details such as the composition and function of the board of directors, the name of the principal owner of the business and involvement of each one in decision making are to be incorporated.Profiles of the management team members involved in the management of the business, indicating clearly their ability and prior experience in handling such responsibilities. The management team members are selected with a view to balance financial, managerial and technical skills that are required to run the business. Further, job description sheets for each management team member should also be attached.This part of the elements of a business plan must also individually cover the qualifications and affiliations of the outside advisors whose services may be sought.The job responsibilities, authorities, compensation and qualifications of the other employees involved in the operation of the business are also required to be provided. It is also a good idea to provide a brief explanation as to how you will find the right human resources and manage them.
Operations
When it comes to the operations, this section of the elements of a business plan must briefly cover the following:
Production methods or conduct of a service: Explain how the inputs required will be sourced and how they will be processed to make the finished product. An estimation of the production cost, availability of inputs, environmental issues that are taken care of, etc., can also be included.Provide an estimate of the capital investment required for equipment and facility irrespective of whether a new business is being set up or the existing capacity is being enhanced.The section on operations and management plan, one of the main elements of a business plan, must also have a description as to how the business will be operated in terms of procedures as well as schedule. This should encompass not only the procedures related to production or rendering a service, but also those with respect to billing, collections, inventory control, record keeping, quality control, etc.Legal aspects related to intellectual property protection, trademark, service mark, copyrights, compliance to local, state and federal regulations, etc., are also required to be included.
Financial plan
It is important to include the financial projection for a period of 2 – 4 years to enable the readers of the business plan to evaluate the business opportunity. Therefore, this section on operations and management plan, one of the key elements of a business plan, shall include:
Income forecast
Cash flow
Estimate breakeven analysis
Projected balance sheet for all the years
If the purpose of developing a business plan is to seek funding for the operation of the business, it is also important to explain in detail as to how the funds will be utilized
Ownership and Management of Operations
The aspects to be covered in this subsection which deals with one of the important elements of a business plan are as follows:
Provide a description of the ownership of the business. Make it clear as to how the business will be managed on daily basis. If it is a partnership business, explain who the partners are, how management decisions will be made and how the issues will be resolved. If the business is organized as a corporation, the details such as the composition and function of the board of directors, the name of the principal owner of the business and involvement of each one in decision making are to be incorporated.Profiles of the management team members involved in the management of the business, indicating clearly their ability and prior experience in handling such responsibilities. The management team members are selected with a view to balance financial, managerial and technical skills that are required to run the business. Further, job description sheets for each management team member should also be attached.This part of the elements of a business plan must also individually cover the qualifications and affiliations of the outside advisors whose services may be sought.The job responsibilities, authorities, compensation and qualifications of the other employees involved in the operation of the business are also required to be provided. It is also a good idea to provide a brief explanation as to how you will find the right human resources and manage them.
Operations
When it comes to the operations, this section of the elements of a business plan must briefly cover the following:
Production methods or conduct of a service: Explain how the inputs required will be sourced and how they will be processed to make the finished product. An estimation of the production cost, availability of inputs, environmental issues that are taken care of, etc., can also be included.Provide an estimate of the capital investment required for equipment and facility irrespective of whether a new business is being set up or the existing capacity is being enhanced.The section on operations and management plan, one of the main elements of a business plan, must also have a description as to how the business will be operated in terms of procedures as well as schedule. This should encompass not only the procedures related to production or rendering a service, but also those with respect to billing, collections, inventory control, record keeping, quality control, etc.Legal aspects related to intellectual property protection, trademark, service mark, copyrights, compliance to local, state and federal regulations, etc., are also required to be included.
Financial plan
It is important to include the financial projection for a period of 2 – 4 years to enable the readers of the business plan to evaluate the business opportunity. Therefore, this section on operations and management plan, one of the key elements of a business plan, shall include:
Income forecast
Cash flow
Estimate breakeven analysis
Projected balance sheet for all the years
If the purpose of developing a business plan is to seek funding for the operation of the business, it is also important to explain in detail as to how the funds will be utilized
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