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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.

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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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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 the Operations Plan in Your Business Plan

Written by Vinay Kevadiya

Published Nov. 6 2024 · 11 Min Read

Your business is scaling, orders are coming in, and your team is working hard. But then you start to slip—a delayed shipment here, a missed deadline there, all without a proper plan.

Soon enough, you’re spending more time solving issues than making progress. This is where an operational plan in your business plan can make all the difference.

An operational plan gives structure to how your business runs each day, showing each role, steps, and timing needed to keep things on track.

If mapping out your operational plan feels like a lot, don’t worry—we’ll guide you through building a plan that’s clear, actionable, and geared for growth. Let’s begin!

What is an operations plan?

An operations plan in a business plan breaks down your day-to-day activities focused on reaching the goals outlined earlier. It shows how each department works together, who’s responsible for what, and the timing needed to keep things on track.

This section clarifies each team or department’s role in hitting your milestones. In other words, it lay out how you’ll use resources—whether they’re physical, financial, or human—to move closer to your business objectives within a set timeframe.

How to write an effective operations plan section of the business plan

Writing an operations plan means outlining the daily tasks that keep your business efficient and goal-oriented. This includes the steps needed for both the development and production phases.

Here’s a step-by-step guide:

1. Development phase

At this stage, you’ll outline what you’ve done to kickstart your business operations. Focus on what changes and improvements you aim to make in this operational planning process.

Here’s what your development section should cover:

Production workflow

Describe each step involved in creating your product. Highlight any inefficiencies you’ve identified and the specific actions you plan to take to address them.

List potential risks in the production process and any problems you might face later. Also, discuss the safety measures in place to protect employees while they work, as well as how you handle hazardous materials and waste disposal.

List any industry, organizations, or associations you’re currently part of or plan to join. Including this information shows you’re engaged with the relevant key stakeholders in your field. This information shows your readers that you’re well-versed with the organizations and associations in your niche.

Supply chains

Discuss the vendors you collaborate with to sell your products. Provide a brief overview of the agreements you've signed, covering terms, conditions, prices, and contract timelines. It’s also wise to mention any backup suppliers you have in place.

This makes sure that you meet your strategic objectives even if your primary suppliers fall short.

Quality control

Outline the steps you’re taking to ensure the quality of your final product. If you’re aiming for product certification, describe the measures in place to meet industry standards.

This reflects your commitment to maintaining high quality in line with your operational plans.

2. Manufacturing stages

The development stage gives the reader a glimpse into how your business operates, while the manufacturing stage focuses on the daily activities involved. Here’s what to include:

Outline of daily activities

Provide a clear outline of the daily activities involved in your production process. This should cover your hours of operation, the days your business is open, and whether it operates year-round or seasonally.

Specify your business location and any additional branches, along with their addresses. If possible, include images, drawings of the buildings, lease documents, and real estate agreements. Explaining their importance in your plan helps underline how these elements support your overall strategic goals.

Tools and equipment

Detail the tools and machinery essential for your operations. Don’t forget to include their costs, as this information will be important in predicting your financial needs.

Make a detailed list of your assets. This should cover land, buildings, tools, machinery, vehicles, and furniture. Providing a legal description and the estimated value of these assets can make your business strategy strong.

Special requirements

If you need any additional facilities, like water supply or specific power needs, mention them here. Clearly state what steps you’ve taken or need to take to secure the necessary permissions for these requirements.

Raw materials

List your raw material suppliers, including any additional materials needed for your operations. Be sure to mention any contracts or agreements you have in place with these suppliers.

Productions

Outline the production process and the time it takes to create one unit. Identify any factors that could disrupt the production flow and share your strategies for addressing these issues to prevent delays.

Describe how you store manufactured products and manage stock, along with the costs associated with storage spaces. Proper inventory management is important for maintaining product quality and ensuring customer satisfaction.

Feasibility

Detail any tests your product has undergone to assess its viability and effectiveness. This includes prototype testing to check design and functionality. Highlight any performance, safety, and user experience assessments that confirm your product is ready for the market and meets customer and regulatory standards.

Discuss your pricing strategy for products or services. Specify the approach you used—whether cost-plus, value-based, or competitive pricing. Include final prices, providing a breakdown if there are different tiers or packages. Also, make sure to connect these costs to your operating budget to ensure they fit within your overall financial plan.

4 key elements of an operational plan

Now that you know why operational planning is important, let us learn about the key elements of it:

1. Strategic Plan

Your operations plan serves as a bridge to put your strategic goals into action. A solid strategic plan lays the groundwork for writing a successful operations plan.

Having clear goals is essential for any operations plan. Think about them in terms of SMART criteria:

• Specific: Clearly outline what you expect employees to achieve.
• Measurable: Quantify goals to track progress effectively.
• Attainable: Set ambitious yet realistic goals.
• Timely: Establish deadlines for achieving these goals.

Different departments will have their objectives, all supporting the main goal. These objectives should be flexible and align with the company's long-term vision .

3. Key Performance Indicators (KPIs)

Selecting the right KPIs is important. Involving all teams in this process can lead to better alignment. Important KPIs to consider might include:

• Revenue growth
• Customer acquisition cost (CAC)
• Net profit margin

4. Timeline

Creating a timeline with milestones is vital for any business. It keeps the team focused and helps measure efficiency. If milestones aren’t met on schedule, it's a good time to assess it again.

Examples of milestones:

• Launching the company website within three months.
• Completing product testing and feedback collection within four months.
• Securing partnerships with two key distributors by the end of the year.

Some additional tips to remember when writing an operational plan

To build an effective operational plan, defining your goals is key. Follow these tips to create a practical and actionable operating plan:

Begin with your strategic framework

Before defining your operational goals, make sure your strategic objectives are well-established and relevant.

Focus on important activities First

Once your goals are clear, prioritize the important activities needed to achieve them. This strategy helps prevent your team from spreading their efforts too thin. By concentrating on fewer tasks, everyone can work more efficiently and make better use of available resources.

Identify key stakeholders

It's important to decide who will take part in the operational planning process before you make an operational business plan. The involved members should have a good knowledge of the actions outlined in the plan.

For example, the design team's operational plan should be created by the head of the design team along with the team leads, depending on the team size. After they finalize their operational plan, it's essential for them to share it with the head of marketing to get that final approval. This collaboration ensures everyone is on the same page and that the plan aligns with overall business objectives.

Create the plan

Your operational plan lays out the particular actions your team will take to meet your goals within a defined time frame. To create an effective operational plan, you should cover the following elements:

• Team Objectives: Clearly define what your team aims to achieve.
• Deliverables: List the tangible results that the operational plan will deliver.
• Desired Outcomes: Include any quality standards or outcomes that need to be met.
• Staffing and Resources: Specify what staffing and resources are required, along with your operating budget.
• Monitoring Progress: Describe how you will track and report on progress throughout the plan's implementation.

If you’re finding it challenging to identify all the necessary details for your operational plan, consider these guiding questions:

What do we need to accomplish? This should align with your strategic plan or yearly goals.

What daily tasks are necessary to reach our objectives? Identify both ongoing tasks and new initiatives that need to start.

Who is responsible for these tasks? Assign one owner to each task to ensure clarity on who to consult for questions or updates. This approach helps maintain accountability and smooth communication within the team.

Update and review

Once your operational plan is ready, share it with key stakeholders so everyone understands the main goals and daily tasks needed to achieve them. Use a shared tool to manage the plan and track progress in real-time.

Be aware that changes will happen. Regularly monitor your operational plan and provide updates, keeping stakeholders and team members informed about your progress. Aim to report monthly with written status updates to ensure alignment and clarity.

Operation plan in business plan example

Here’s the operational plan template for a software development company:

Difference between strategic and operational plans

Strategic and operational planning are two sides of the same coin. However, both have a different role.

Strategic planning is more about the future. It's about predicting what’s ahead and planning for new opportunities or challenges.

An operational plan, unlike a strategic plan, talks about execution. The operational plan outlines the daily and weekly tasks your team needs to make.

Plus, you’ll also need to specify the Key Performance Indicators (KPIs). This helps you to track your progress regularly and make sure your team is on the right path.

Why is an operations plan important in a business plan?

Operational planning turns big-picture strategies into actionable steps. While a strategic plan sets long-term goals, an operational plan tells about day-to-day activities that keep everyone on track.

According to research, only 26% of knowledge workers clearly understand how their tasks tie back to company goals. That’s where operational planning bridges the gap by setting specific short-term goals aligned with broader objectives.

Operational planning helps by:

Offering clarity

Operational planning makes sure that everyone on the team knows what needs to be done daily, weekly, and monthly. This clarity boosts focus and productivity across the board.

Providing a roadmap

With operational planning, reaching your long-term goals becomes a lot easier. When your team has clear business goals to follow, productivity increases, and everyone stays accountable for their tasks.

Setting a benchmark

An operational plan establishes clear goals, showing everyone where the company is headed and how to get there.

Managing resources

This planning process helps you allocate resources effectively, whether it's your staff, equipment, or materials. It ensures nothing goes to waste and that everything is utilized to its fullest potential.

Helping in decision-Making

An operations plan simplifies decision-making by providing insights into daily business operations. It highlights resource management, smart investments, and effective risk strategies, ensuring that every decision enhances overall business performance.

Once you complete this section of your business plan, you'll have a well-defined operations plan ready for your readers. This plan will serve as a practical checklist of the steps needed to achieve business goals.

Creating this document allows you to refine your business ideas into a straightforward list that you can reference and use. As you tick off items, you can share your vision with investors, partners, and team members.

We hope this guide has been useful in helping you draft a solid operational plan section for your business plan.

If you still feel uncertain or need assistance getting started, consider utilizing business plan software like Bizplanr. It provides step-by-step guidance to help you navigate the planning process without the stress of what to tackle next.

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Frequently Asked Questions

What is included in the operations plan of a business plan?

An operations plan outlines daily processes, operational goals, equipment needs, and production methods. It ensures your business runs smoothly by detailing how tasks will be accomplished.

Can I create an operations plan for a service-based business?

Absolutely! Service-based businesses benefit from operations plans to define service delivery, scheduling, and customer interactions, which helps streamline processes​.

Do I need an operations plan if I’m a solopreneur?

Yes, an operations plan is essential for solopreneurs. It helps you stay organized, manage tasks effectively, and set clear priorities, ensuring you operate efficiently.

What is the difference between a strategic plan and an operations plan?

A strategic plan outlines long-term objectives and vision, while an operations plan details the day-to-day actions needed to reach those goals. Both are vital for business success but serve different purposes.

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.

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How To Write the Operations Plan Section of Your Business Plan + Example

Written by Dave Lavinsky

Operational plans are important for any effective business plan . They provide a roadmap for how your company will operate on a day-to-day basis, and specifically detail the specific strategies and actions you will take to accomplish your company’s goals.

What is the Operations Plan in the Business Plan?

The Operations Plan is one of the critical business plan components to include in your plan as it presents your company’s action plan for executing its long-term vision. Your business operations plan must detail:

• The processes that are performed to serve customers every day (short-term processes) and
• The overall business milestones that the company must attain to be successful (long-term processes).

Why Your Operations Plan is Important

Anyone can have lofty goals (e.g., we will reach $X million in revenue in year X). The Operations Plan proves to the reader that you have thought through and devised a plan to achieve your goals.

What to Include in Your Operations Plan

The operations section of your business plan has two sub-sections: Key Operational Processes and Business Milestones.

Key Operational Processes (Short-Term Processes)

Every company has processes to provide its customers with products and services. For instance, Wal-Mart has a unique distribution system to effectively move products from its warehouses to its stores, and finally to its customers’ homes. Technology product manufacturers have processes to convert raw materials into finished products. And service-oriented businesses have processes to serve clients, to identify prospective new clients, to continually update service features, etc.

Below are key operational functions that your organization may need to fulfill. In your plan, identify each of these areas that are relevant to your company and what the role of that function is. For example, our customer service team will ensure our customers are satisfied. We will provide 24/7 customer service and post product updates on social media each week.

• Product Development
• Customer Service
• Manufacturing
• Administration
• Accounting/Payroll
• Human Resources

The processes that a company uses to serve its customers are what transform a business plan from concept to reality. Anyone can have a concept. Importantly, investors do not invest in concepts; rather, they invest in reality. Reality is proving that your management team can execute the concept better than anyone else, and the Operations Plan is where the plan proves this by detailing key operational processes.

Business Milestones (Long-Term Processes)

The second part of your Operations Plan is showing your team’s expected timeline to achieving key milestones. This is best presented in a chart. On the left side, there should be a list of the key milestones the company must reach, and on the right, the target date for achieving them. Sample operational milestones include expected dates when:

• New products and services will be introduced
• New stores will open
• Revenue milestones will be achieved (date when sales exceed $X, when sales exceed $Y, etc.)
• Key partnerships will be executed
• Key customer contracts will be secured
• Key financial events (future funding rounds, IPO, etc.) will occur
• Key employee hires will happen

Additional text should be used, where necessary, to support the projections laid out in the chart.

The milestone projections presented in the Operations Plan must be consistent with the projections in your Financial Plan. In both sections, it is important to be aggressive but credible. Presenting a plan in which the company grows too quickly will show the naivete of the management team while presenting too conservative a growth plan will often fail to excite the potential investor or lender.

By including your Operation Strategy in your business plan you a) show investors/lenders you have a real plan for executing your vision upon funding and b) have a roadmap to follow to ensure your long-term success.

Operations Plan in Business Plan Example

The following operational plan example outlines a hypothetical plan for a small consulting firm, XYZ Company. The plan details the resources required, key operational processes, performance indicators, and milestones to guide the company’s growth and success. This example can be adapted to fit the specific needs and goals of various businesses.

Resource Requirements:

• Physical Space: 1,000 square feet of office space
• Equipment: $10,000 for office furniture and equipment
• 3 full-time employees
• 2 part-time employees
• 1 contractor

Key Operational Processes:

• Client Acquisition and Onboarding:
• Process: All new client inquiries will be responded to within 24 hours. Initial consultations will be scheduled within 48 hours of contact. Proposals will be presented within 10 days of the initial consultation.
• Team: John Smith (full-time) and Jane Doe (full-time)
• Project Management and Execution:
• Process: Work will begin within 2 weeks of proposal acceptance. Projects will be managed collaboratively by John Smith and Jane Doe.
• Support Functions:
• Process: Contractor Joe Johnson will provide support as needed.
• Team: Joe Johnson (contractor)

Key Performance Indicators (KPIs):

• Client Acquisition: Number of new clients acquired per month
• Client Satisfaction: Customer satisfaction ratings (e.g., Net Promoter Score)
• Project Completion: Percentage of projects completed on time and within budget
• Operational Efficiency: Average time to complete projects

Milestones:

• Month 1: Secure office space and equipment
• Month 2: Hire key personnel
• Month 3: Launch initial marketing campaign
• Month 6: Acquire first 10 clients
• Year 1: Achieve $X in revenue

Tracking Key Performance Indicators with Operational Planning

As a business owner, it’s important to track your progress against your company goals. This is where KPIs come in. KPIs, or key performance indicators, are an important part of your company’s strategic plan, and help you track progress and identify areas of improvement. You should document your KPIs in the operations plan of your business plan.

Here are a few things to keep in mind when choosing KPIs for your business:

• Make sure that the KPIs you choose are relevant to your company’s goals.
• Choose KPIs that can be easily measured.
• Avoid choosing too many KPIs, as this can be overwhelming. Stick to a few key ones that will give you the most insights into your business’s progress.
• Set realistic targets for each KPI. This will help you track your progress and identify areas of improvement.
• Review your KPIs regularly to ensure that they are still relevant and accurate, while also being in line with strategic plans.

Examples of KPIs that You Could Track with an Operational Plan

Some examples of KPIs that you could track are:

• Sales growth
• Delivery times
• Customer satisfaction ratings
• Product quality
• Production processes
• Employee retention
• Operational costs

Creating an operational plan with KPIs will help you track your progress, identify areas of improvement, improve strategic planning, and make necessary changes to reach your company’s strategic objectives.

Key Takeaways

A few key things to remember when writing your operations plan:

• Describe the resources that will be required to run your business
• Detail the processes and procedures that will be used to get work done
• Identify the people who will be responsible for carrying out various tasks

Following these tips will help you create a comprehensive and effective operations plan for your business.

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How to Write the Operations Section of the Business Plan

Back to Business Plans

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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