In this section you aregoing to describe your business operation on a day to day basis. Itis different and unique for each and every business venture and soyou should Tailor this part of your business plan to reflect themarket you are operating in. But as a minimum you should bediscussing your location, production of your goods and services, ITsystems and management information systems and although this soundslike a lot it is information you should be comfortable with.
You need to talk aboutany business property including if it is a room in your home, talkabout any long term commitments to this property including rent,mortgage, utilities, telecommunications, include costs and if you areoperating out of your home property be sure to assign a share ofthese. For example if your property has 6 rooms and you use 1 foryour business then 1/6 of all costs should be associated with thebusiness. You need to talk about the advantages and disadvantages ofyour current location and very briefly discuss any expansion plans.
Producing your goodsand Services
You need to explain howyou are going to manufacture your goods, will you own your ownfacilities or will it be more financially feasible to outsource theseservices? If you do own your own discuss the quality and how modernthey are, are they easy to expand in volume should the need arise doyou have a maximum volume and what is it, how does this compare withyour forecasted demand? How will you deliver if the demand exceedsthis volume? Do you need any investment in infrastructure. If you donot own your own, who will be your suppliers, discuss any relevantpricing and details about them here.
In todays businessenvironment IT is almost always an important considerations sodiscuss your requirement s and include your current strengths andweaknesses and how you are going to tackle your weaknesses. You needto go into detail about your systems reliability and any planneddevelopment of your systems and what benefits this will bring yourcompany and ultimately the customer. Focus on
- integration with existing systems
- innovation and software development
- Back up and redundancy measures
These are all importantfactors in todays business environment and should be addressed.
Describe yourprocedures for stock control, management accounts, quality control,customer satisfaction, sales, marketing, records, data handling,confidentiality, refer to current legislation and detail anycertifications you have or are going to aim for with dates forexample ISO:9002
Can they cope with anyexpansion of the business and are they scalable. Also discuss anyaudits and reviews of current processes and procedures you have inplace to ensure they are current and the most effective for the jobthey control.