The operations, whether simple or complex, should be explained to a lender so that they fully understand how the business will acquire its products and how it will make them ready for resale. Explaining this process should also make the business plan reader aware that the entrepreneur has the expertise to pass on the businesses' products or services to its customer base.

The more complex the business operations, the more the lender will have to be convinced that the entrepreneur and his/her management team can handle the required tasks. This also means the reader will have to be better educated on the proposed business venture.

Explaining the operations process can be difficult especially when the reader lacks the knowledge of the industry in which you plan to enter. When writing this section make sure all operations are fully explained in as simple and as straightforward an approach as possible. It may also be required that you explain the operations in person in addition to having them written in the business plan. The visual aspect may make the process a little easier to grasp for the reader.

If you are in a business whose operations are complex, explaining them thoroughly may make the difference in getting the desired funding or being turned down. Furthermore, if the lender is confused about the operations, they will not likely see the potential for the proposed business. Below discusses several areas of interest under the operation section of your business plan.
 
 
 

COMPONENTS OF OPERATION'S SECTION:

The components discussed under the operation's section generally include the following; Legal Business Form, Direct Materials, Planned Facility, The Production Process, Capital Equipment Required, Time-lines, Threats to the Business, Current Product, Research & Development, Licenses & Permits, Insurance Required, Proprietary Information (patents, trademarks, copyrights) and After Sale Service.  Please Note: some of the components discussed below will not apply to certain businesses. If any component does not apply to your specific business, simply omit it.  Below provides links to the components of the operation section of a business plan.
 
 
 

This concludes our discussion on the Operation's Section of the Business Plan. Below provides various samples of the operations' section.