The operations section of your business plan is where you explain – in detail – you company's objectives, goals, procedures, and timeline. An operations plan is helpful for investors, but it's also helpful for you and employees because it pushes you to think about tactics and deadlines.

In the previous course, you outlined your company's strategic plan, which answers questions about your business mission. An operational plan outlines the steps you'll take to complete your business mission.

Your operations plan should be able to answer the following:

Who – The personnel or departments who are in charge of completing specific tasks.
What – A description of what each department is responsible for.
Where – The information on where daily operations will be taking place.
When –The deadlines for when the tasks and goals are to be completed.
How much – The cost amount each department needs to complete their tasks.

While you can think of the stage of development part of the operations plan as an overview, the production process section lays out the details of your business's day-to-day operations. Remember, your goal for writing this section of the business plan is to demonstrate your understanding of the manufacturing or delivery process for your product or service.

Make sure you include all these details of your business' operations:

General: Do an outline of your business' day-to-day operations, including your hours of operation and the days the business will be open. If the business is seasonal, be sure to say so.
The physical plant: Describe the type, site, and location of premises for your business. If applicable, include drawings of the building, copies of lease agreements, and recent real estate appraisals. You need to show how much the land or buildings required for your business operations are worth and tell why they're important to your proposed business.

Equipment: The same goes for equipment. Besides describing the equipment necessary and how much of it you need, you also need to include its worth and cost and explain any financing arrangements.
Assets: Make a list of your assets, such as land, buildings, inventory, furniture, equipment, and vehicles. Include legal descriptions and the worth of each asset.
Special requirements: If your business has any special requirements, such as water or power needs, ventilation, drainage, etc., provide the details in your operating plan, as well as what you've done to secure the necessary permissions.

Materials: State where you're going to get the materials you need to produce your product or service and explain what terms you've negotiated with suppliers.
Production: Explain how long it takes to produce a unit and when you'll be able to start producing your product or service. Include factors that may affect the time frame of production and describe how you'll deal with potential challenges such as rush orders.
Inventory: Explain how you'll keep track of inventory.
Feasibility: Describe any product testing, price testing, or prototype testing that you've done on your product or service.
Cost: Give details of product cost estimates.