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Comprehensive Business Plan Guide

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Operational Plan

Importance of a business planHow to write an effective business planPreliminary stages of writing a business planBusiness IdeasExecutive summaryCompany overview or backgroundVision, Mission, Values and ObjectivesExternal environment analysisInternal environment analysisSWOT analysisMarket and CompetitorsProduct and service offeringMarketing and sales planOperational planHuman resources planRisks and contingenciesFinancial informationSupporting documentsBusiness plan writing videosConcise business plan templateFree business plansForms of businesses



           
This section of your business plan covers key areas pertaining to the operations of your business entity. The operational plan generally encompasses the physical necessities of your business operations. Important aspects to include in this section center around the following: the location and premises of your business, key business suppliers, the necessary machinery, motor vehicles, fixtures and fittings , equipment, people, processes and procedures and the surrounding environment.
Other factors to consider in your operational plan include systems as well as Environmental and Occupational Issues.

1.    Location and premises 


In this section of your operational plan, you may provide the following information:

  • The location of your business in terms of physical address
  • Map showing directions to your business
  • The duration at the current location
  • Accessibility: In terms of accessibility, does the location have good access roads and communication networks? Discuss the proximity to key stakeholders such as your employees and customers
  • Is the location leased/ rented or owned?
  • Expansion possibilities
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2.    The machinery, equipment, motor vehicles and other fixed assets


In this section of your operational plan, provide details of the following:

  • The key fixed assets in terms of machinery, vehicles, fixtures and fittings, equipment and other aspects that are essential to your business operations
  • Include details about ownership and the condition of the assets
  • What is the cost of the machinery and other essential fixed assets used for business operations
  • Details about capacity in line with each asset
  • Details about technical maintenance support
  • Details about how the assets are depreciated or will be depreciated. Is it the straight line, reducing balance or other method? What is the useful life of each fixed asset?
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3.    Production


In terms of production,

  • Describe the production process, provide schematics/ diagrams
  • Provide a description of the production techniques and costs
  • Information on product developments
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4.    Legal Environment


In this section, you may provide information on the following:

  • Important laws and regulations
  • Trademarks, patents, copyrights and other intellectual property
  • Any past and pending litigation
  • Outlooks of VAT or income tax audits, if available
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5.    Inventory


If your business will manufacture or sell products, provide information about inventory. If your business is an existing business, you may also provide photographs of your inventory. This sub section encompasses the following:

  • The raw materials you use or intend to use
  • Suppliers
  • Finished products
  • The average value of goods or products
  • Lead times for ordering
  • Information on seasonal build ups where applicable
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