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Module-10.-Operation-and-Management-Plans

Entrepreneurship

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Reinyel Josh Echanova
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10 views

Module-10.-Operation-and-Management-Plans

Entrepreneurship

Uploaded by

Reinyel Josh Echanova
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Business Plan: VI.

Operations and management Plans

The Operation and Management Plans section of a business plan details how the
business will function on a day-to-day basis and how it will be managed over time. This section
focuses on the logistics of the business’s operations, the organizational structure, and the
processes required to deliver the product or service to the market.

A. Operations Plan

The Operations Plan outlines the key processes, resources, and strategies for delivering
your product or service. It shows how the business will run efficiently, manage costs, and meet
customer demands.

Key Components of an Operations Plan:

1. Production Process:
o Describe how the product/service is created: If it’s a manufacturing business,
detail the steps in production, materials required, suppliers, and machinery used.
o For service businesses: Explain the service delivery process, client interactions,
and key service milestones.
2. Suppliers:
o Identify key suppliers: List your vendors for raw materials or essential inputs.
o Discuss supplier relationships: How often will you order? What is the payment
structure? How do you ensure timely delivery?
3. Facilities and Equipment:
o Inventory of assets: Provide details on necessary facilities and equipment for
operations (e.g., machinery, vehicles, office furniture).
o Maintenance and upgrades: Explain how you will maintain and upgrade
equipment over time to ensure efficiency.
4. Technology:
o Technology needed for operations: Include any software, hardware, or systems
needed
5. Discuss Implementation and Training: Outline plans for implementing new
technology, including training for employees to ensure they are proficient in using the
tools. Include considerations for cybersecurity and data management.

B. Management Plan

The Management Plan section outlines the organizational structure of the business,
detailing the key personnel responsible for managing various functions.

Key Components of a Management Plan:

1. Organizational Structure:

 Outline the Structure:


o Provide a visual representation (e.g., an organizational chart) of the business's
structure, showing the hierarchy and reporting relationships.
o Include key roles and departments (e.g., operations, marketing, finance).

2. Key Management Personnel:

 Describe Key Roles:


o Detail the qualifications and responsibilities of key management personnel,
including:
 CEO or founder.
 Department heads (e.g., operations manager, marketing manager,
finance manager).
 Experience and Expertise:
o Highlight the relevant experience and expertise of each key personnel
member, including past achievements and how they contribute to the
business's success.

3. Human Resources:

 Staffing Needs: Discuss the staffing requirements necessary for operations,


including: Number of employees needed in various roles.; and skills and
qualifications required for each position.
 Recruitment and Training: Outline the recruitment process and training programs
to ensure employees are well-prepared for their roles. Include strategies for employee
development and retention.

4. Operational Policies and Procedures:

 Standard Operating Procedures (SOPs): Develop and outline SOPs for key
operational processes to ensure consistency and efficiency.
 Performance Metrics: Define metrics to assess operational efficiency and
effectiveness, such as productivity rates, customer satisfaction scores, and financial
performance indicators.

Summary

The Operation and Management Plans section is critical to your business plan as it details how
your business will operate on a day-to-day basis and how it will be managed over time. By
thoroughly addressing the components of the operations and management plans, you provide a
clear blueprint for running the business effectively and efficiently, which is essential for
attracting investors and guiding your team.

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