contents of the operation plan section of a business plan

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How to Write the Operations Plan Section of a Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

How to Write the Operations Plan Section of the Business Plan

Stage of development section, production process section, the bottom line, frequently asked questions (faqs).

The operations plan is the section of your business plan that gives an overview of your workflow, supply chains, and similar aspects of your business. Any key details of how your business physically produces goods or services will be included in this section.

You need an operations plan to help others understand how you'll deliver on your promise to turn a profit. Keep reading to learn what to include in your operations plan.

Key Takeaways

• The operations plan section should include general operational details that help investors understand the physical details of your vision.
• Details in the operations plan include information about any physical plants, equipment, assets, and more.
• The operations plan can also serve as a checklist for startups; it includes a list of everything that must be done to start turning a profit.

In your business plan , the operations plan section describes the physical necessities of your business's operation, such as your physical location, facilities, and equipment. Depending on what kind of business you'll be operating, it may also include information about inventory requirements, suppliers, and a description of the manufacturing process.

Staying focused on the bottom line will help you organize this part of the business plan.

Think of the operating plan as an outline of the capital and expense requirements your business will need to operate from day to day.

You need to do two things for the reader of your business plan in the operations section: show what you've done so far to get your business off the ground and demonstrate that you understand the manufacturing or delivery process of producing your product or service.

When you're writing this section of the operations plan, start by explaining what you've done to date to get the business operational, then follow up with an explanation of what still needs to be done. The following should be included:

Production Workflow

A high-level, step-by-step description of how your product or service will be made, identifying the problems that may occur in the production process. Follow this with a subsection titled "Risks," which outlines the potential problems that may interfere with the production process and what you're going to do to negate these risks. If any part of the production process can expose employees to hazards, describe how employees will be trained in dealing with safety issues. If hazardous materials will be used, describe how these will be safely stored, handled, and discarded.

Industry Association Memberships

Show your awareness of your industry's local, regional, or national standards and regulations by telling which industry organizations you are already a member of and which ones you plan to join. This is also an opportunity to outline what steps you've taken to comply with the laws and regulations that apply to your industry. 

Supply Chains

An explanation of 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.

Quality Control

An explanation of the quality control measures that you've set up or are going to establish. For example, if you intend to pursue some form of quality control certification such as ISO 9000, describe how you will accomplish this.

While you can think of the stage of the 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 business plan section is to demonstrate your understanding of your product or service's manufacturing or delivery process.

When writing this section, you can use the headings below as subheadings and then provide the details in paragraph format. Leave out any topic that does not apply to your particular business.

Do an outline of your business's 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, size, 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.

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.

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.

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.

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.

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.

Give details of product cost estimates.

Once you've worked through this business plan section, you'll not only have a detailed operations plan to show your readers, but you'll also have a convenient list of what needs to be done next to make your business a reality. Writing this document gives you a chance to crystallize your business ideas into a clear checklist that you can reference. As you check items off the list, use it to explain your vision to investors, partners, and others within your organization.

What is an operations plan?

An operations plan is one section of a company's business plan. This section conveys the physical requirements for your business's operations, including supply chains, workflow , and quality control processes.

What is the main difference between the operations plan and the financial plan?

The operations plan and financial plan tackle similar issues, in that they seek to explain how the business will turn a profit. The operations plan approaches this issue from a physical perspective, such as property, routes, and locations. The financial plan explains how revenue and expenses will ultimately lead to the business's success.

Related Articles

How to Write the Operations Plan Section of Your Business Plan

The Operations Plan is a component of your business plan that is like the engine of your car. The operations plan holds the key parts of your business, and it shows how those parts work together to keep the business running. If you are starting a business or your business is growing, the operations plan also shows that your business is more than just a good concept. It shows why the business is running smoothly and how key milestones ahead will be met as the business grows. The operations plan is the powerhouse engine in your business plan . Let’s start that engine together.

What is the Operations Plan in a Business Plan?

The key to putting your operations plan together is choosing which processes show how your business works and what the expected outcomes will be as a result. Include the processes that you believe are most important even if they are basic or simple. And, if you think your business is too new to create an operations plan, think again. Every business has processes, no matter how large or small they may be. Your operations plan may be considered by potential investors or lenders; make it the best it can be.

Components of a Comprehensive Operations Plan

The best operations plan includes a list of key processes with short explanations that detail each process. Some explanations will also include a brief sentence explaining how the key process will help the business meet the expected key milestones. For example, “Our Marketing team will post on social media each time our product sales reach one of our sales goals. This will drive new customers to our product offering.”

Main components of an operations plan:

Product Development

Describe how the product is being developed and if it is currently offered or is on target for launch. Include the production process for testing, improvements or revisions.

Key milestone : Note the forecast for new product development to expand the product line.

Manufacturing

Describe the process of manufacturing, from the first step to the delivery of products. This may include several bullet points. Add facilities maintenance in this section. Also, include the management processes of the staff.

Key milestone : Include a brief forecast with plans to increase manufacturing capabilities.

Administration/Human Resources

Include a description of day-to-day activities that are overseen by staff members, including facilities management, safety, reports and compliance, hiring staff and training.

Key milestone : Add a sentence regarding staff training for leadership as the business grows.

List the process of purchasing parts, services, products, and raw materials. Include a sentence about financial oversight of expenditures to control costs.

Key milestone : Indicate how the staff is preparing for purchasing increases to meet higher manufacturing demands.

Customer Service

List the processes that comprise customer service, including any customer relationship management software (CRM) or other processes that interact with customers. Provide details on processes for customer retention.

Key milestone : Add a sentence describing staff training to build customer relationships.

Describe how your business conducts sales, whether through online channels, via wholesale or retail sales, or by other means. Explain why the process works for your business and how it is positioned to be successful because of the sales process.

Key milestone : Indicate how planned sales strategies will expand to meet key milestones.

Note the process of current marketing campaigns and the response of the target audience. Note how responses are scored on social media.

Key milestone : Include operational plans for building brand awareness, key selling points, and entry positions.

At this stage of business, the finance process should be clearly outlined, with current and any expected funding included. Also, include a sentence about how the business has structured a repayment plan for any loans and is making on-time payments.

Key milestone : Describe any anticipated funding options that have already been put into place.

Accounting/Payroll:

Describe in a few sentences how timely accounting is completed on a regular basis. Add a sentence about the payroll system and the software that runs it.

Key milestone : Add a note about increasing software programs in accounting to increase performance during growth.

Include a sentence about the process of oversight for the business. Add the process of documentation, filings, and oversight of any copyrights, patents, or trademarks. Include any licensing payments that add revenue to the business.

Key milestone : Include a description of the legal process already in place to accommodate expansion and long-term growth.

How to Write the Operations Plan For Your Business

Now that you’ve read about the main components in a business operations plan, it’s time to connect them in writing your own operations plan. To do this, you can follow the easy steps ahead as you construct each process.

Remember, you may not need all of the processes listed here. You will want to choose those that make sense for your business and, if needed, add some others. When completed, your operations plan will flow smoothly from start to finish.

• Consider your Business Goals . Write out each goal. Read them as you decide which processes to include in your operations plan and think about how soon you will want to meet the company goals.
• Create a Process List . Look at the list of components and decide how to make them into a list for your own business. Don’t write out full descriptions yet. We’re building the list first. How do processes start in your business?
• Finance (get funding)
• Product Development (buy a truck, provide services, equipment, tools)
• Manufacturing (maintain the garage and tow truck)
• Sales (make sales calls)
• Customer Service (answering texts, and emails)
• Marketing (getting referrals from friends)
• Accounting/Payroll (paying yourself and the bookkeeper)
• Legal (risk management assistance)
• Start filling in the Process Descriptions . Use the examples above to describe the processes of your business. A few sentences that explain each process are all you need in the operations plan.
• For example, key milestones for your tow truck business might be:
• Tow at least five vehicles daily during each week (sales/marketing)
• Buy a second tow truck within 6 months (finance)
• Add a second tow truck driver within 6 months (human resources)
• Buy a commercial truck within 12 months (finance/product development)
• Finish your Operations Plan . Re-read each Process Description and complete the Key Milestones for each operations section.

Sample Operations Plan for Badger Drains & Plumbing

Badger Drains & Plumbing, based in Milwaukee, WI, is dedicated to providing top-notch residential and commercial plumbing services. Our operations plan outlines the key processes that make our business run smoothly and how we plan to meet our key milestones as we grow.

Our services, instead of physical products, are continuously refined based on customer feedback and technological advancements in plumbing. This includes adopting newer, more efficient ways to conduct pipe repairs, installations, and maintenance services.

Key milestone : To introduce environmentally friendly and cost-effective plumbing solutions within the next year.

Our staff handle day-to-day operational tasks, prioritizing safety, efficiency, and regulatory compliance. This includes everything from scheduling service calls to conducting routine safety checks and equipment maintenance.

Key milestone : Implement a leadership development program for senior technicians to prepare them for managerial roles as the company expands.

We procure high-quality plumbing materials, tools, and technologies from reputable suppliers, ensuring we have the necessary inventory to meet customer demand without excessive expenditure.

Key milestone : Strengthen relationships with key suppliers to negotiate better prices and ensure priority fulfillment as service demand increases.

Customer service is a pillar of our operations, involving not just resolving issues but proactively enhancing customer satisfaction through follow-ups and feedback collection using CRM software.

Key milestone : Introduce a loyalty program by the end of the next quarter to increase customer retention rates.

Sales efforts are directed through personal client interactions and digital marketing to generate leads, with a strong focus on the benefits of choosing Badger Drains & Plumbing for reliability and professionalism.

Key milestone : Achieve a 20% increase in annual contracts by targeting commercial entities in the Milwaukee area.

Our marketing is focused on local SEO, targeted ads, and social media engagement to connect with the Milwaukee community, emphasizing our quick response times and quality service.

Key milestone : Launch a community-oriented campaign to increase brand visibility and customer engagement by participating in local events and sponsorships.

Our current financing includes business revenue and a small business loan, with a diligent approach to budgeting and a clear plan for loan repayment and future investments.

Key milestone : Secure a line of credit to fund an expansion of services within the next two years.

Accounting/Payroll

We use modern software solutions to ensure accurate and timely financial and payroll management, allowing us to focus more on serving our customers and less on back-office tasks.

Key milestone : Transition to a more comprehensive software suite that integrates CRM and finance for better overall management efficiency.

Our legal framework encompasses regular reviews of compliance, documentations, and the management of any intellectual property, ensuring all operations are above board.

Key milestone : Establish a retainer partnership with a legal firm specializing in small businesses to prepare for interstate licensing and expansion.

By following this operations plan, Badger Drains & Plumbing aims to enhance its service offerings, optimize operational efficiency, increase productivity, and achieve sustainable growth, maintaining its commitment to being Milwaukee’s trusted plumbing service provider.

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How to Write an Operations Plan Section of your Business Plan

Free Operations Plan Template

• June 26, 2024

An operational plan bridges the gap between high ambitions and actual achievements. This essential integral section helps businesses thrive, achieve their goals, and handle challenges with accuracy and purpose.

But is it challenging for you to write one in a manner that shows a clear picture of your business operations? Drafting the operations plan section can be tricky due to the uncertainties of the business environment and the risks associated with it.

Well, worry not you’re at the right place! Here, we will see how to write an engaging operational plan in a business plan with an example. So let’s get going.

What is an operations plan?

An operations plan of a business plan is an in-depth description of your daily business activities centered on achieving the goals and objectives described in the previous sections of the plan. It outlines various departments’ processes, activities, responsibilities, and execution time frame.

The operations section explains in detail the role of a team or department in the collective accomplishment of your goals. In other words, it’s a strategic allocation of physical, financial, and human resources toward reaching milestones within a specific timeframe.

Key questions your operational plan should address

A successful operational plan section of your business plan should be able to answer the following questions:

• Who is responsible for a specific task or department?
• What are the tasks that need to be completed?
• Where will these operations take place?
• When should the tasks be completed? What are the deadlines?
• How will the tasks be performed? Is there a standard procedure?
• How much is it going to cost to complete these tasks?

Let’s see how to write the operations section that answers all the above questions:

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How do you write an operations plan section?

Writing an operations plan within a business plan involves summarizing the day-to-day tasks necessary to run the business efficiently and meet its goals in both the development and manufacturing phases of the business.

Here’s a step-by-step guide:

1. Development phase

In this stage, you mention what you’ve done to get your business operations up and running. Explain what you aim to change and improvise in the process. These are the elements your development section will contain:

Production workflow

Explain all the steps involved in creating your product. Provide a detailed description of each step, including any inefficiencies and the actions needed to address them. Here, you also mention any inefficiencies that exist and talk about the actions that need to be taken to tackle them.

Write down the risks involved in the production and potential problems you may face later down the line. State the safety measures employees take to avoid any misfortune while working. Explain how you store hazardous material and discard waste.

Mention any industry organizations and associations you’re a part of or plan to join. It’s essential to include this information to convey to the reader that you’re aware of the organizations and associations in your industry.

Supply chains

Here, you mention the vendors you work with to sell your products. Give a quick rundown of the agreements you signed with them. Mention the terms and conditions, prices, and timeframe of the contract. You can also mention if you have any backup suppliers if the existing ones fail to fulfill the requirements.

Quality control

Describe the measures you’re taking to assure and verify the quality of the end product. If you’re working towards getting a product certification, explain the steps you take to meet the set standards.

2. Manufacturing phase

The development stage acquaints the reader with the functioning of your business, while the manufacturing stage describes the day-to-day operation. This includes the following elements:

Outline of daily activities

Create an outline of the day-to-day activities of the production process. This includes the hours of operation, days the business will be open, and whether the business is seasonal or not.

Mention the location of your business , other branches you have, and their locations. If available, include images or drawings of the buildings, lease documents, real estate agreements, and other relevant documents. If you include these in your plan, mention why they’re crucial.

Tools and equipment

Describe the tools and machinery you use. You should also include the cost of the equipment; these will be important to predict financial requirements.

List down all your assets. These include land, buildings, tools, machinery, vehicles, and furniture. Include a legal description and the value of these assets.

Special requirements

If you require any additional facilities like water supply or power requirements, you mention them here. Specify what you need to do or have already done to acquire permissions for these requirements.

Raw materials

Mention your raw material suppliers. If you need any extra materials, you can also include them in your operations plan. Here, you also mention the contracts and agreements with your suppliers.

Productions

Explain the production process and the time required to produce one unit. Include the factors that may disrupt the production flow. Further, mention your strategies to tackle these inefficiencies to avoid delays in manufacturing.

Here, you state the process of storing manufactured products, managing the stock, and the costs of the storage spaces. Stringent management of inventory is essential to maintain product quality and assure customer satisfaction.

Feasibility

To ensure the viability and effectiveness of your product, detail any tests it has undergone. This includes prototype testing to evaluate the design and functionality.

Additionally, highlight product or service testing, such as performance, safety, and user experience assessments. These tests validate your product’s readiness for the market, ensuring it meets customers’ needs and regulatory standards.

Include the pricing strategy for your products or services. You can also include the final prices of your products.

Outline your pricing strategy including which approach you used, for example—cost-plus, value-based, or competitive pricing. Include the final prices of your products or services, providing a breakdown if there are different tiers or packages.

Why do you need an operations plan?

An operations plan is like an instruction manual for your business. It helps investors assess your credibility and understand the structure of your operations.

Internally, an operations plan works as a guide, which helps your employees and managers to know their responsibilities. It also helps them understand how to execute their tasks in the desired manner—all while keeping account of deadlines.

The operations plan helps identify and cut the variances between planned & actual performance and makes necessary changes.

It helps you visualize how your operations affect revenue and gives you an idea of when you need to implement new strategies to maximize profits. Some of the advantages of preparing an operations plan include:

Offers clarity

Operational planning makes sure that everyone in the audience and team is aware of the daily, weekly, and monthly work. It improves concentration and productivity.

Contains a roadmap

Operational planning makes it much easier to reach long-term objectives. When members have a clear business strategy to follow—productivity rises, and accountability is maintained.

Set a benchmark

It sets a clear goal for everyone about what is the destination of the company and how to reach it.

Manages resources

It supports you in allocating resources, such as human resources, equipment, and materials, ensuring that nothing is wasted and everything is used optimally.

Helps in decision making

An operations plan helps make smart decisions by showing how the business runs day-to-day. It provides details on resources, wise investments, and effective risk management, ensuring that decisions improve overall business operations.

Operations plan essentials

Now that you have understood the importance of the operations plan, let’s go through the essentials of an operations plan:

Strategic plan

Your operations plan is fundamentally a medium for implementing your strategic plan . Hence, it’s crucial to have a solid plan to write an effective operations plan.

Having clear goals is one of the most important things for an operations plan. For clear goals, you need to think SMART:

• Specific: Clearly define what employees should achieve
• Measurable: Quantify the goal to track progress
• Attainable: Set ambitious but achievable goals
• Timely: Provide a deadline

Different departments will have their objectives, all supporting the main goal. All these strategic objectives are flexible and should align with the company’s long-term goals.

Key performance indicators

It’s essential to choose the right Key Performance Indicators (KPIs). It’s a good practice to involve all your teams while you decide your KPIs. Some of the important KPIs can be revenue growth, customer acquisition cost (CAC), net profit margin, churn rate, etc.

Creating a timeline with milestones is necessary for any business. It keeps everyone focused and helps track efficiency. If some milestones aren’t met in a certain period, then it’s time to re-evaluate them.

Examples of some milestones are:

• Hiring key team members in six months
• Setting checkpoints for different production phases like design, prototype, development, testing, etc.
• Acquiring the first 50 clients in a year

Now you’re all set to write an operations plan section for your business plan. To give you a headstart, we have created an operations plan example.

Operations Plan Example

We know this guide has been helpful for you in drafting a comprehensive operational plan section for your business plan.

If you’re still unsure or need help getting started, consider using business plan software like Upmetrics . It offers step-by-step guidance, so you won’t have to worry about what comes next.

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Frequently Asked Questions

What is the difference between a strategic plan and an operational plan.

A strategic plan outlines the long-term vision, mission, and goals of an organization, focusing on growth and direction over several years.

In contrast, an operational plan details the short-term tasks, processes, and resource allocation needed to achieve those strategic goals, emphasizing day-to-day efficiency and productivity.

What role does the operations plan play in securing funding for a business?

The operations plan defines the clear goals of your business and what actions will be taken daily to reach them. So, investors need to know where your business stands and it will prove the viability of the goals helping you in getting funded.

What are the factors affecting the operations plan?

Some of the factors that affect the operations plan are:

• The mission of the company
• Goals to be achieved
• Finance and resources your company will need

Can an operations plan be created for both start-up and established businesses?

Yes, both a startup and a small business need an operations plan to get a better idea of the roadmap they want for their business.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Write the Operations Plan Section of Your Business Plan

Do you have a brilliant business idea, but aren’t quite sure what steps are necessary to turn your vision into a reality? If so, a strong operations plan is key. An operations plan is more than just a formality required by investors; it is your roadmap for everything from staffing and equipment to production and risk management.  

What is an Operations Plan?

A business operations plan is a vital section of your overall  business plan . It dives deep into the day-to-day tasks of your company, outlining how you’ll transform your concept into reality. This roadmap details everything from the physical location and equipment you’ll need to your staffing structure and production processes.

However, a strong operations plan goes beyond simply listing resources. It strategically aligns all the elements of your day-to-day to help you achieve specific milestones. For example, the plan might detail how many employees you’ll need at launch to achieve initial sales goals, then outline a hiring timeline for scaling up production as you reach subsequent milestones. This ensures efficient resource allocation and helps you measure and track progress towards your long-term vision.  

Why is an Operations Plan Important?

An operations plan is a strategic tool that can make all the difference in the success of your business. When you describe how you will operate, you will recognize opportunities for cutting down on unnecessary processes and saving money, all while enhancing general efficiency. The following reasons are why operational planning is a must for your business:

• Serves as a roadmap : It gives you an idea of what your business will look like and the direction it should take, which will keep everybody on the right course.
• Appealing to investors : An elaborate operational plan shows that you know your business, which in turn instills confidence in your ability to succeed.
• Streamlines business operations : It helps you identify the bottlenecks and optimize your process.
• Facilitates decision-making : Having your business strategy in front of you helps you make pertinent decisions for allocating resources, staffing, and expansion.

A well-designed operations plan is any business enterprise’s goldmine. By investing adequate time and effort into constructing a proper operational plan, you will set your business up for long-term success.  

Key Components of an Operations Plan

A comprehensive operations plan is more than just a blueprint for day-to-day operations; it’s a strategic roadmap that demonstrates your team’s commitment to achieving the company’s long-term goals. To effectively convey your vision, incorporate the following key components:

Short-Term Processes

• Facilities and Equipment:  Describe the location, size, and layout of needed facilities. List required equipment and machinery. Discuss any special needs, such as permits or zoning.
• Production Process:  Outline the steps involved in producing your goods or services, supported by diagrams or flowcharts. Identify potential bottlenecks and discuss solutions.
• Supply Chain Management:  Describe your sourcing strategy for raw materials and components. Discuss relationships with suppliers and logistics providers. Explain inventory management and delivery processes.
• Quality Control:  Detail your quality control measures and standards. Explain how you will monitor and improve product or service quality.
• Human Resources:  Outline staffing needs, including job descriptions and qualifications. Discuss recruitment and training strategies. Describe compensation and benefits packages.
• Technology:  Describe the technology you will use. Discuss your IT infrastructure and security measures.
• Risk Management:  Identify potential risks and mitigation strategies. Discuss insurance coverage and contingency plans.

Long-Term Goals

To demonstrate your team’s commitment to the long-term company vision, include a clear outline of key milestones and their target dates. These milestones should align with the projections in your financial plan and include:

• New product or service introductions
• Revenue milestones
• Key partnerships
• Customer contract acquisitions
• Financial events
• Employee hires

Remember to provide additional context and strategic objectives for the projections outlined in your chart. A well-crafted operations plan not only showcases your understanding of day-to-day operations but also demonstrates your team’s ability to execute long-term company goals.  

How to Write a Great Operations Plan

A well-thought-out operations plan will help ensure that your business thrives. It should provide a roadmap for everyday operations that make your operations both effective and efficient. Consider the following tips to help you write a riveting operations plan for your business.

• Be specific : Use real concrete information and avoid abstract.
• Use visuals : Consider using diagrams and flowcharts to explain complex processes.
• Consider scalability : Think about how the operations plan might be scaled up when revenue growth occurs.
• Discuss what could go wrong : A company’s strategic plan can help you anticipate obstacles or challenges to success.
• Seek professional advice : Consult professionals in your industry, if necessary.

By following these steps, you can create an operations plan that not only describes how your business currently operates but also forms a foundation for growth and expansion in the future.  

Operations Plan Example

Happy Trails Pet Sitting provides reliable, compassionate in-home pet-sitting services, allowing pet owners’ peace of mind while they’re away.

Facilities and Equipment:

• Happy Trails Pet Sitting will operate virtually, with a dedicated home office space for scheduling, client communication, and administrative tasks.
• Equipment will consist of a computer, reliable internet connection, printer, smartphone, and pet-related supplies (waste bags, leashes, etc.) for client consultations.

Production Process:

• Client Inquiry:  Potential clients will contact Happy Trails through the website contact form, phone call, or email.
• Consultation:  A free, in-home consultation will be conducted to discuss pet needs, owner expectations, and service specifics (feeding schedules, medication administration, playtime, etc.)
• Booking and Agreement:  Upon agreement, a service contract will be signed outlining service details, fees, and cancellation policy.
• Pet Sitting Service:  Scheduled visits will be conducted as per the contract, providing companionship, walks, feeding, and other requested care for the pet.
• Daily Communication:  Daily updates with photos and videos will be sent to the pet owner via email or text message.
• Post-Service Follow-up:  A brief phone call with the client will be made after the service to discuss the pet’s well-being and gather feedback.

Supply Chain Management:

• Happy Trails will not require physical inventory management.
• Partnerships will be established with local pet stores to offer clients discounts on pet supplies.

Quality Control:

• A rigorous pet sitter selection process will be implemented, including background checks, pet CPR/first aid certification, and reference checks.
• Client consultations ensure clear communication of pet needs and service expectations.
• Daily updates with photos and videos will promote transparency and quality assurance.
• Regular client satisfaction surveys will be conducted to identify areas for improvement.

Human Resources:

• Happy Trails will initially operate with a team of 2-3 independent pet sitters residing in different areas to offer wider service coverage.
• Job descriptions will outline qualifications (experience, reliability, pet knowledge) and responsibilities.
• Pet sitters will be trained on pet care best practices, safety protocols, and client communication strategies.
• Compensation will be based on an hourly rate or a flat fee per visit.

Technology:

• Happy Trails will utilize a user-friendly online booking system integrated with the website to allow clients to schedule appointments and manage their accounts.
• Secure cloud-based software will be used to store client and pet information.
• A communication platform will be used to facilitate communication between pet sitters and clients (text, email).

Risk Management:

• Pet sitters will be bonded and insured against liability and property damage.
• A thorough meet-and-greet session will be conducted before service starts to assess pet temperament and identify potential risks.
• Back-up pet sitters will be identified in case of emergencies or scheduling conflicts.
• Year 1:  Secure 50 regular clients within the first 6 months, and expand service coverage to additional zip codes in the city.
• Year 2:  Hire 2 additional pet sitters to meet growing demand, and offer additional services like dog walking packages.
• Year 3:  Establish partnerships with local veterinarians and animal shelters, and explore franchising opportunities in neighboring cities.

This operations plan outlines the foundation for Happy Trails Pet Sitting to deliver reliable, high-quality in-home pet care services. By focusing on building trust with pet owners, employing qualified and compassionate pet sitters, and utilizing efficient technology, Happy Trails is poised to achieve its long-term goals and become a leader in the local pet sitting market.

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How to Write the Operations Section of the Business Plan

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Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 20, 2023

Among the countless tasks involved in starting a business is writing a business plan . Many entrepreneurs who don’t need funding view this as a step they can skip, but that’s never a good idea. 

A sharp and detailed business plan is essentially a business owner’s commitment to and preparation for the road ahead, detailing the operations, strategies, and potential growth.

The operations section is the real heart of a business plan, detailing how your venture will operate on a day-to-day basis. Researching and writing this section will prepare you to run your business, structure your operations, and deal with any hurdles.  

This guide delivers all the insight you need to whip up a fantastic operations section of your plan.

What Are Operations?

Operations are the assets, processes, and people necessary to keep the business running and making money on a day-to-day basis. They include how the product or service is developed or sourced, what needs to be done for that to occur, and the resources required. 

You’ll also detail the activities that need to occur to attract customers, make sales, and deliver the product or service. 

Keep in mind that operations are different for every company. If you’re running an online shoe store , for instance, you won’t learn much by examining the operations of a cement manufacturer. 

Elements of the Operations Section

The operations section of the business plan has several key elements. 

1. Assets Required

Your business’s required assets may include a physical space, such as a shop or office, as well as equipment, vehicles, computers, and other physical assets needed to develop your product and operate the business. List all these assets, the expected cost, and how you’ll acquire them. 

2. Product Development or Sourcing

Detail all the steps necessary to produce or acquire your product or service. Include details of your suppliers, how you will acquire products and raw materials, and the estimated cost. If you’re manufacturing products, detail the processes and production oversight plan, as well as costs. 

If your product involves technology, detail the stages of development and how you’ll maintain and advance the product on an ongoing basis.

Your goal should be to paint a picture of exactly what will happen on a day-to-day basis to produce a product or service that’s ready to sell, who will be involved, and how much it will cost. 

3. Technical Processes

If you expect to use any technical processes, explain them and who will be involved. These could be anything from business process automation and workflow management systems to project management or AI analytics for marketing. 

Detail the initial and ongoing costs for any software and hardware used.

4. Marketing and Sales Activities

To clarify, this section will not explain your business’s marketing and sales strategies. Rather, here you detail how marketing and sales will be conducted, who’ll be responsible, and the expected cost. For example, you might have your own internal team or outsource to a marketing agency.  

If you plan to hire marketing staff, detail what roles you’ll fill, what they’ll do, and how they’ll be paid. For example, your salespeople may receive a base salary and commissions.

5. Product or Service Delivery Activities

Detail how you will get the product or service to the customer. If you’re selling a product online, describe how products will be shipped and who is involved in packaging products and getting them to the delivery provider. 

If you’re delivering a service, detail how this is done and who is responsible for performing the service. 

6. Operational Objectives

Finally, you’ll include your operational objectives. These could include:

• Acquiring equipment by a certain date
• Hiring employees
• Short-term production goals
• Engaging with a supplier

It’s important to illustrate that you have specific operational plans and goals that will enable you to meet your overall business objectives.

Every business is different, so you may need to include all of the elements described above, or just a few of them. What’s important is that the reader is able to grasp how your company will function on a day-to-day basis. 

By writing the operations section, you’ll learn exactly what it will take to keep your business chugging along and bringing in revenue – and that knowledge will likely be invaluable down the road.  

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How to Write the Operations Plan Section of a Business Plan

T he operations plan is a critical section of your business plan that outlines the logistical aspects of how your business operates, including workflows, supply chains, facilities, and equipment. This section demonstrates how you will execute your business strategy and meet your operational goals. A detailed operations plan is essential for convincing investors, partners, or stakeholders of your ability to deliver on your business objectives and turn a profit.

Here’s an in-depth guide to crafting an operations plan that aligns with the latest standards and expectations in 2024.

Key Takeaways

• The operations plan details the physical and logistical elements of your business, including workflows, facilities, and supply chains.
• It provides insights into the equipment, assets, and processes critical to your operations.
• A well-structured operations plan serves as both a roadmap for startups and a comprehensive overview for stakeholders.

The operations plan forms the backbone of your business plan, offering an inside look at the physical and logistical elements necessary for running your business. It includes details about your business location, equipment, supply chain, and operational processes. The section should be written with a focus on demonstrating your preparedness to manage daily operations effectively.

Key Components of the Operations Plan

• Stage of Development
• Begin by describing the progress you’ve made toward operational readiness. Outline what has been accomplished to date, including securing facilities, acquiring necessary licenses, or conducting preliminary tests. Follow this with a detailed account of the next steps required to bring your operations to full capacity.
• Production Workflow : Summarize the step-by-step process of creating your product or delivering your service. Address potential risks and outline strategies for mitigating them, especially safety concerns and compliance with regulations.
• Industry Standards and Memberships : Highlight your familiarity with industry standards by listing associations you are part of or plan to join. Demonstrate your adherence to local, national, or international regulations.
• Supply Chains : Detail your supplier relationships, including pricing, terms, and contingency plans in case of disruptions.
• Quality Control Measures : Explain how you ensure consistent product or service quality, such as pursuing certifications or implementing standardized procedures.
• Production Process
• This section provides a granular view of your daily operational activities. Tailor your content to your business type and include only applicable topics.

Subsections to Cover:

• General Operations : Outline your hours of operation, seasonal variations, and the nature of your day-to-day activities.
• Physical Location : Provide specifics about your facilities, including size, type, and location. Attach relevant documents, such as leases or appraisals, to support your narrative.
• Equipment : List the equipment necessary for operations, its cost, and financing details. Explain how these assets contribute to your workflow.
• Assets : Itemize tangible and intangible assets, including their value and significance to your business.
• Special Requirements : If applicable, mention unique operational needs, such as specialized power, water, or environmental considerations.
• Materials and Inventory : Discuss your materials' sourcing, inventory management, and supplier relationships.
• Production Timeline : Describe the production schedule, from the time required to create a unit to managing rush orders.
• Feasibility and Costs
• Testing and Validation : Summarize any product testing or feasibility studies that have been conducted to validate your business concept.
• Cost Analysis : Provide detailed estimates for production costs and explain how these align with your pricing strategy.

The Bottom Line

An operations plan is not just a part of your business plan; it’s a tool for ensuring your business is on track to meet its goals. Once completed, the operations plan serves as a roadmap for achieving profitability, a checklist for startup tasks, and a resource for communicating your vision to stakeholders. By carefully crafting this section, you lay the foundation for operational success and stakeholder confidence.

Frequently Asked Questions (FAQs)

What is an operations plan?

An operations plan is a section of a business plan that focuses on the physical and logistical aspects of running a business, such as workflows, facilities, supply chains, and quality control processes.

How does the operations plan differ from the financial plan?

While the financial plan details how revenue and expenses will lead to profitability, the operations plan explains the physical processes, equipment, and logistical steps necessary for achieving those financial goals.

With this approach, your operations plan becomes a comprehensive and practical guide for ensuring your business’s functionality and scalability while providing clarity and confidence to stakeholders.