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Developing the Operations Component of a Business Plan

In an eight section Business Plan, Sections Two and Three are typically the Company Section and the Management / Operations Section. The next section, Section Four, the Products and Services Section, is the meat and potato of the business with sections 2 and 3 setting up section 4. The Management, Operations and Company Sections of a Business Plan are really important since they show how a company it to be run. These sections also develop the quality of the management team which is responsible for running the day to day operations. All of this will spell the success or failure of a company, and the reason for their importance. Many think the Marketing Plan section and the Products and Services section are the most important in a business plan, but without intelligent company management and operational management, the best products and awesome marketing can not make it successful. It is the team and how it runs a company that makes it successful. It is the heart of a company.

A Company’s Management Team is Very Important

No matter how good the company’s Products or Services, it can not be successful with out the solid construction blocks of the Company, Management and Operations Sections of its business plan. I normally amalgamate Operations with the Management section but it can stand on its own or be part of the Company Section. Either way, it is important to establish the connection between Company Structure, the Management Team, Management Objectives and the Operational aspects of the company. It is a very important and necessary triangle to plan well for.

Writing the Company Section of a Business Plan

The Company section of a Business Plan speaks to all the pertinent inside information of your particular company. This section comes first in the Business Plan, after the Executive Summary, as it serves as an entry to the necessary details and background of your company. For instance, the Company Section could contain this type of information…

• How it is defined
• What your company does
• How it is organized
• Your Vision, Mission and Goal Statements
• History of the company
• Where it is located
• How you can be contacted
• And so forth…

A Suggested Format for the Company Overview Section

1)     Company Establishment

2)     Company History

3)     Company Structure

4)     Company Ownership & Legal Formation

5)     Facilities & Locations

6)     Products & Services Overview

7)     Trends Affecting the Company

8)     Customers

9)     Competitive Strategy

10)  Company’s Strengths & Weaknesses

11)  Company Performance

12)  Company Finance

13)  Company Assets

Writing The Management and Operations Section of a Business Plan

You can have the top business idea or concept but lack the people to execute the plan.  Therefore, the Management Section of the Business Plan is the most important element of the plan and often scrutinized as such by finance sources, customers and your Business Plan audience. This section builds on the Company Section explaining in detail…

• Who will run the company
• Who founded the company
• Who the key employees are within the company
• How the company will be run
• What are the specific qualifications of those who will run the company, work in the company, and be responsible for sales, marketing and its strategic direction
• The specific gaps in Management and talent, providing a plan to fill or overcome those represent gaps
• And so forth…

An Example Organization for the Management and Operations Section

1)     Employees

2)     Management Philosophy

3)     Management Requirements

4)     Management Gaps

5)     Organizational Structure

6)     Founders / Directors / Principals / Management / Key People

7)     Management Administrative Procedures & Controls

8)     Decision Making Teams & Processes

9)     Company and Management Objectives, Goals and Strategy

10)  Compensation Structure

11)  Human Resources

12)  Outsourcing

13)  Consultants and Advisors

14)  Products and Services Production and Delivery

15)  Distribution System

16)  Order Turn Around

17)  Suppliers and Vendors

18)  Service Standards

19)  Customer Service Plan

20)  Quality Control

21)  Costs Minimization

22)  Technology

23)  Production and Operation Advantages

24)  Capacity

25)  Safety Procedures

26)  Inventory

27)  Environmental Considerations

Related articles

• Crisis management by firing executives – and why that’s futile (venturebeat.com)
• 17 words and phrases to avoid in your business plan (venturebeat.com)
• Business Plan Archive Online (kauffman.org)

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