Table of contents

Cover page (1 page) Title page (1 page) Letter of transmittal (1 page) Table of Contents (1 page) Executive Summary (1 page) 1. Company Overview (1 page) 2. Products and Services (1-2 pages) 3. Industry and Market Analysis (~3 pages) 4. Marketing Plan (~4 pages) 5. Optional - Computer plan . Development Plan (~2 pages) 6 Operations Plan (~2 pages) 7. Management Plan (~1 page) 8. Financial Plan (~3 pages) Funding (1 page) Appendices (no more than 15 pages)

6. Operations Plan (~2 pages)

Operations is defined as the processes used to deliver your products and services to the marketplace and can include manufacturing, outsourcing, transportation, logistics, customer and technical service 6.1 Stake holders -Identify the key vendors, suppliers, strategic partners, and associates. What arrangements have you discussed with them? What price agreements have you reached? 6.2 location -Where will you be located? Why this particular location?
6.2.1 Facility What type of facility is required: size, type of space (office, customer service, development, laboratories, production, warehouse and shipping). 6.2.2 lay out -Provide a layout of the production or service process. How will your product/service flow through the facility? 6.2.3 Cost: Estimate your occupation expenses, including rent, but also including maintenance, utilities, insurance, and initial remodeling costs to make the space suit your needs. These numbers will become part of your financial plan. 6.2.4 What will be your business hours?

6 Operations
6.3 Inventory
What kind of inventory will you keep: raw materials, supplies, finished goods? Based on your sales forecast, estimate how much production or service capacity is required over the next five years. This is usually expressed as some rate per hour, day, week, month or year. For example, 100 lighting fixtures per month or 150 meals per day for a restaurant. Average value in stock (i.e., what is your inventory investment)? Seasonal buildups? Lead-time for ordering?

6.4 Machinery
What capital assets do you require? Describe the major items (equipment, vehicles, buildings, fixtures, decorations, computers and software, etc.) and how much each will cost. Will you lease or purchase? Determine your manpower requirements to produce and deliver the product/service. What types of employees are needed (skilled, technical, supervisory, manual, etc.)? How much will you pay them?

6.5 Legal Environment Licensing and bonding requirements ,Permits Health, workplace, or environmental regulations Insurance coverage Trademarks, copyrights, or patents (pending, existing, or purchased)

6 Operations
6.6 Operations Strategy Describe the process for producing and delivering your product/service. With picture How will you use operations to add value for customers in your target market?
Which dimensions will you stress and which will you de-emphasize? Can you use extranets to provide coordination with vendors and strategic partners? Does your process or way of doing business give you a competitive advantage

6.7 Scope of Operations Describe which operations you will do in-house and which you will subcontract. Why does this make sense for your business?. Consider the following:
Production Product development Order fulfillment Customer service Warehouse and shipping Tech support Installation Warranty service and repairs

Flow chart

Value chain analysis

For Service organization

8. Management plan
Show an organizational chart, which indicates lines of authority, names of people currently filling positions, and positions to be filled. Describe the duties and responsibilities of each key member of the management team. Include a resume to show their experience and education. Show their current compensation, current share of ownership, stock options, pension plan and other benefits.
Identify weaknesses of the management team. Discuss the availability of individuals with the necessary skills to overcome these weaknesses.

Identify members of the Board of Directors. Discuss the skills and input they provide to the company. Disclose any investment that they have in the company.

Identify, if any, the professional service organizations you have selected for accounting, legal, advertising, public relations, banking and any other services.

Executive Summary (1 page)

Write this section last. Make it two pages or fewer. Include everything that you would cover in a five-minute interview. Its objective is to capture the readers interest, so that they want to read the entire plan; even better to call you to arrange a meeting. It should be considered a chance to sell the reader on the business opportunity. Explain the fundamentals of the proposed business: What will your product be? Who will your customers be? Who are the owners? What do you think the future holds for your business and your industry? Make it enthusiastic, professional, complete, and concise. If applying for a loan, state clearly how much you want, precisely how you are going to use it, and how the money will make your business more profitable, thereby ensuring repayment.

The summary should address the following elements of the plan:

Concept Description Summarize the essence of your business. Opportunity Why is this a good opportunity? What evidence do you have to support the demand? What is the size of your market? What are the critical trends? What is the compelling need, i.e. what problems are you solving? Product/Service Describe the product or service. How will you differentiate it from the competition? How is the product or service to be produced and delivered? Value Proposition Who is the target market? What are benefits to the target market? Marketing Strategy What are the key elements of your marketing strategy? Competitive Advantage Who is the competition? What is your competitive advantage? Management: Who is the management team and why will they make a success of the venture? Financial How large will the company become, i.e. what revenues will be achieved in year 3 or 4? What is the expected profitability? When will the company breakeven? Funding How much funding is required? What will it be used for? What is the offering? What is the exit strategy?