Now that we have given an overall description of our business, we need to take a close look at the core components of it. These are the sections that will act as backup to your executive summary.
This is the section where you describe in detail what your product or service is. Put a name to it, why it will sell, the price point and how you came up with that price. If there is no existing market, then tell how you plan to replace the substitute product that is currently in use by your clients. Talk about why your clients will want to switch, how you plan to promote your brand and how you want to distribute your product. Demand management is a term that may or may not apply to your business, but understanding it will be important. There are two meanings but for our purposes, we will discuss it in a business context rather than an economics one. Demand management refers to the management of the distribution of products and services. If demand becomes more than supplies, then a redistribution or better management of the supply is needed. If your existing business offers a product or service that falls into this situation, you will need to have a plan for addressing it. Perhaps, that is why you are drawing up your business plan in the first place. If that is the case, then spend some time on this section, do some brain storming and lay out solid theories for success – then test them!
The operational plan is a detailed description of your operations. Here is where you describe your supply chain, the exact needs for facilities and equipment, plus your warehousing or storage needs. All aspects of information systems, business communications, security and privacy should be laid out very clearly. Technical language can be used, but be prepared to translate it into layman’s terms. Human resources can be a large part of the operational plan depending on the size and age of the business. If you are a new business, then chances are the staffing requirements are relatively small. If you are an existing business with a full staff, then describe in detail the structure of your workforce. List roles of management, subordinates, their interaction and the system of reporting. Include accurate job descriptions, compensation packages and regular availability. Many existing business find themselves drawing up a business plan for the purpose of diversification. If this is the case, then here is where you will need to include a detailed training plan for your employees. Training your staff costs time and money, factors that are an important part of your operations.