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Business planning series – Part 7: business operation planning

Business planning series – Part 7: business operation planning


Welcome to part 7 of our business planning
series -Operations The operations area of your plan summarises
how your business works, including information on how your products are made or services
are provided. It includes details of your premises and lease terms, equipment, materials,
labour, technology and environmental concerns. An operating plan is essential for smooth
day-to-day running of your business. Choosing the right location for your business
is really important – it can be critical to the success of your business, so take time
with your selection. Before you investigate specific properties, it is crucial that you
research locations to find a range of areas or suburbs that are suitable for your business.
Make a list of key features that are important in your location (for example, being close
to a main road, floor space, parking availability, street frontage). Ask your local council if
they have any new developments or zoning changes planned for the area you are considering.
Also, be sure to talk to you solicitor for advice and guidance on leasing agreements. Moving on to production – understanding
your production processes will help you standardise your operations. Ask yourself, how and where
are you products and services going to be produced? What costs will be involved? How
will you document your standard procedures? What quality control measures will you use? The next element of operations is customer
management – think about how you are going to keep customer records. This will also feed
into your customer retention strategies – think loyalty programs, birthday incentives and
follow-up sales activities. The next two points, plant and equipment and
stock and inventory, go hand-in-hand. What do you need to operate your business? Are
you going to rent, lease or buy your plant and equipment? What are you stock storage
requirements?

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