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DIP – Business Plan (C)

Lim Sei Kee @ cK. DIP – Business Plan (C). OPERATIONAL PLAN. Explains the daily operation of the business, its location, equipment, people, processes, and surrounding environment.

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DIP – Business Plan (C)

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  1. Lim SeiKee @ cK DIP – Business Plan (C)

  2. OPERATIONAL PLAN • Explains the daily operation of the business, its location, equipment, people, processes, and surrounding environment. • In the lineup of key business capabilities in your business plan, the term operations describes the processes and resources that you use to produce the highest quality products or services as efficiently as possible.

  3. Operation Plan • In this section, describe how your product or service will be made, and identify the problems that may occur in the production process. • Explain who your suppliers are and their prices, terms, and conditions. Describe what alternative arrangements you have made or will make if these suppliers let you down. • Start by explaining what you have done "to date" to get the business operational, followed by an explanation of what still needs to be done.

  4. Business operations typically include four key areas: • Location: Where you do business — physically and online • Equipment: The tools you need to get the job done • Labor: The human side of business operations • Process: The way you get business done, including your systems for quality control and improvement

  5. Operation Plan • General • The physical plant • Equipment • Special requirements • Materials • Production • Inventory • Cost

  6. General: Do an outline of your business' day to day operations, such as the hours of operation, and the days the business will be open.

  7. The physical plant: What type of premises are they and what is the size and location? If it's applicable, include drawings of the building, copies of lease agreements. • Where will your business be located? • What is the advantage, if any, of your location?

  8. 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. • What does the equipment do, how do the pieces function together, and how much can be produced? Will you purchase or lease your equipment? Why and from whom?

  9. Special requirements: If your business has any special requirements, such as water or power needs, ventilation, etc., provide the details in your operating plan - as well as what you have done to secure the necessary permissions.

  10. Materials: Tell where you are going to get the materials you need to produce your product or service, and explain what terms you have negotiated with suppliers.

  11. Production: Explain how long it takes to produce a unit, and when you will be able to start producing your product or service. Include factors that may affect the time frame of production and how you will deal with potential problems such as rush orders. • Outline your key suppliers, the purchasing process, and unique purchasing requirements. Where will finished goods be stored, and what is the associated space and cost? How will finished goods (or services) be distributed?

  12. Inventory: Explain how you will keep track of inventory.

  13. Cost: Give details of product cost estimates.

  14. What’s your operation plan? • General • The physical plant • Equipment • Special requirements • Materials • Production • Inventory • Cost • PRESENTATION: 11th / 13th FEBRUARY 2014

  15. Preliminary Business Proposal • Business objectives • Description of business • Description of product(s) / service(s) • Management Plan DUE: 22nd FEBRUARY 2014 (SATURDAY)

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