How to Write an Operational Plan

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Business Operational Plan
As a business plan reviewer and analyst, I find it amazing how many entrepreneurs give this section the least weight or skip it altogether.
The operational plan is an essential component to your business plan and it tells the reviewer how your going to get your product/service out to market. That is, how are you going to get your product out of the production stage to the doorstep of you target customer.
I know, the operational plan may seem mundane but it will outline some very important answers to such fundamental questions such as:
• Who is doing what?
• What are the day to day activities?
• How will the suppliers and vendors be used?
• Who are the suppliers?
• What are the labour requirements?
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However, if your business is a retail operation, distribution may not be a problem and you might not have to discuss it.
On the other hand, if you business is an operation that develops or relies on a lot of new technology, you need to explain those aspects thoroughly. You need to explain who will be using that technology and what the implications are.

Basically, you want to explain to your reader how you are going to deliver your product. What are you and/or your employees going to be doing on a daily basis from the time you open up to time you close. This is what your reader wants to know.
Some issues often addressed in an operational plan include:
• Production or manufacturing
• Facilities
• Inventory
• Distribution
• Maintenance and service - Order fulfillment and customer service

Production or Manufacturing
Every manufacturing business has a production process - the way it goes about fabricating a raw or component material and creating an item with greater usefulness or desirability. However, even if your business is a service or retail operation, you have to use a method of “producing” something of value for your customers.
Integral to the overall understanding of a production oriented business is an appreciation of how the company will

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