Shutterstock The next step in creating your business plan is to develop an Operations Plan that will serve your customers, keep your operating costs in line, and ensure profitability. Your ops plan should detail strategies for managing, staffing, manufacturing, fulfillment, inventory Fortunately, most entrepreneurs have a better handle on their operations plan than on any other aspect of their business. After all, while it may not seem natural to analyze your market or your competition, most budding entrepreneurs tend to spend a lot of time thinking about how they will run their businesses.
What is an Operational Plan? An operational plan describes how the company or organization will achieve the goals, objectives and strategies described in the larger strategic or business plan.
The operational plan includes all actions that are needed to meet the strategic plan objectives, personnel responsible for carrying out the described actions, and the timing, costs and KPIs key performance indicators that align with these actions. The operational plan must be reviewed and updated regularly to ensure that the company is meeting outlined objectives.
Sample Business Operation Plans As with our other examples, for our first sample we are going to use our fictional company, Terra Engineering for this operations plan example.
Included are the general operating procedures, human resources, insurance, and working capital requirements of the business. Also included is a table outlining the office space requirements, asset acquisition and an outline of Terra Engineering's operational workflow.
Terra Engineering will be operational year round. Smith will be the sole employees of Terra Engineering for the first two years of operation. When additional human resources are needed, Terra Engineering has identified the persons qualified and able to assist on a contract basis for the same rate as the owner.
Wes Aaron, and environmental engineering technician will be sub-contracted to complete work as needed. It is estimated that Mr. Aaron will eventually be hired full time by Terra Engineering once demand warrants growth. Leanne White holds a Masters in Environmental Engineering and will also be sub-contracted to perform work for the company.
Eventually, Terra Engineering intends to hire Mrs. Charles Pearson holds a Bachelors of Science Degree in Environmental Engineering and has a vast technical experience base in the environmental assessment area and will be retained when needed. Also at this time, an administrative assistant will be sought.
A professional user of Auto Cad will be sought to perform various jobs for the company. It is unknown at this time who will fill this position, however, job advertisements will be put in the local papers and organizations to attract a good pool of respondents. Once hired, all employees will be covered by the Workers Safety and Insurance Board and covered for Employee Benefits.
Insurance Requirements Terra Engineering will have to incur costs for business liability insurance. Operating Capital Requirements Due to the demands imposed at start up, Terra Engineering will require that the business have sufficient working capital to meet all operational responsibilities of the business for the first three months.
Also, throughout the year there tends to be periods of low activities. Consequently, the company will experience financial pressures during these months. While much of this time will be spent developing proposals and marketing strategies, there will be a need to maintain sufficient working capital to cover these periods.
A long term strategy to maintain a positive cash flow during these periods will be to diversify the company and develop environmental training programs for certain communities.The Company Description Example Should Distill the Basics of the Business Plan Into One Simple, Clear and Easy to Understand Statement.
Sample Company Description Terra Engineering is a new company that will provide high quality technical and environmental engineering services to it's clients.
An operational plan is an annual work plan. It describes short-term business strategies; it Number, and Description The department/agency (or budget unit) submitting the budget request should be identified by name and agency number.
Examples include: Operational Plan Format, Guidelines, . The next step in creating your business plan is to develop an Operations Plan that will serve your customers, keep your operating costs in line, and ensure profitability.
Your ops plan should. The Organizational and Operational Plan describes how you will structure your company and how you will carry out everything you present elsewhere in your business plan.
Without an execution. If your plan is for a start-up company, include a description of how you plan for each of the four key operational areas.
For established companies, detail what operational changes are necessary to achieve the new goals and objectives detailed in your business plan and how you plan to implement and fund an expansion of your operation.
The operations and management plan is designed to describe just how the business functions on a continuing basis. The operations plan will highlight the logistics of the organization such as the.