1. Definition of an Operation Plan
2. What Is the Operations Plan Section and How to Properly Make It
3. Operating Section of the Business Plan: Stage of Development Section
4. What Are the Key Components to Include in an Operational Plan Regarding the Business Organization?

An operation plan section of the business plan is an essential part of any business. Learning what an operation plan is and learning how to make it is something critical to any business. Here are the main things you need to know about an operation plan.

Definition of an Operation Plan

An operation plan is a guiding path for the business to follow in order to achieve all of its goals and objectives described in the general business plan.

The operation plan mainly includes details about the people responsible for completing the required actions, and all the costs and KPIs (key performance indicators) for these actions to be accomplished.

In order for any business to be stable in the long run, the operation plan must be updated regularly in order to ensure the stability of the business.

What Is the Operations Plan Section and How to Properly Make It

The section of the operations plan which is included in the business plan mainly specifies all the physical requirements for the operation of the business. These physical requirements mainly include equipment, facilities, and location.

In order to make a complete business plan, three things need to be clarified to the reader:

  • Everything was done for the business from the start to reach its current position
  • Acknowledgment that you know exactly what should be done for any business to get off the ground
  • Full awareness and understanding of the delivering and manufacturing processes of the service or the product you offer.

Operating Section of the Business Plan: Stage of Development Section

While you're developing the stage of development section, you should begin with the previous procedures that have been taken so far, along with mentioning what is best to be done in the future, it should be as follows:

  • Production workflow: In this, you will describe in detail the exact steps of how your service or your product will be made, along with the acknowledgment of any possible problem that could be faced during the process.
  • Risks: Here you include all the possible risks that may be faced in the future, with the right procedures and actions to be taken in order to avoid such risks as much as possible.
    • In addition, you will include details about how to train the employees to solve any upcoming problem and avoid any risks as much as possible. Along with mentioning any dangerous equipment that will be used, and the proper ways of using and storing these pieces of equipment.
  • Supply chains: In this section you clarify the identity of the suppliers, the prices they offer, and their terms and conditions, In addition to providing the possible alternatives in case it doesn't work out with the current suppliers
  • Quality control: Here you provide a description of the quality control measures that have been determined or are going to be determined.
    • As an example, in case you are willing to have a specific quality control certificate, like the ISO 9000, you should identify and explain the required procedures.

What Are the Key Components to Include in an Operational Plan Regarding the Business Organization?

Here are the main components to be included in the operational plan:

  • Most of the tasks in the operation plan are carried out by the company's managers and the employees under them, so it is essential that to clarify their identity, describe their qualifications, and describe the jobs and tasks which they will be responsible for.
  • Providing an organizational chart to describe the structural hierarchy of the business.
  • The philosophy and tactics of the company, and the role they play in the development and stability of the business.
  • A statistical measurement of the performance of the employees and managers, and the ways of reward and punishment.
  • Explain the methods that you will use to find the right employees, putting into consideration the required qualifications needed, the job description of each one, and the compensation rates that you will offer.
  • In case the business will need any outside consultants it should be noted, along with the specific functions required from any outsider consultant or employee.

In the end, one could conclude that the success or a failure of a business depends heavily on the quality of the business and operation plan put forward.

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