How to Create an Effective Operations Plan in Business Plan?

According to Harvard Business School Professor Robert Kaplan, 90% of organizations fail to execute their strategies effectively.

When strategies falter, operational inefficiencies arise, derailing your business plan and pushing your organization to the brink of failure.

But don’t worry— a well-crafted operations plan can provide the structure and clarity needed to keep your business steady and on track. In this guide, we’ll explore how to create the operations plan section of your business plan ensuring your organization operates smoothly and efficiently

Additionally, we’ll provide tips on writing an operations plan that supports your long-term goals and drives operational success.

Ready to start? Let’s dive in.

While a strategic plan looks at long-term goals, an operational plan focuses on short-term tasks. It helps each department stay on track and work towards the company’s main goals.

How to write the operations plan section of your business plan?

The operational plan is a vital part of any business plan. To present it professionally and ensure your stakeholders clearly understand your operations, it's essential to take a strategic approach when crafting your business plan.

Here's how to structure the operations plan in your business plan:

Phase 1: Daily operations

To make understanding your operation easy, it's advisable to split your operations into phases.

Start with daily operations; in this phase, inform your readers about everyday tasks that keep your business running. Here's what you should include:

• Workflows: Describe the sequence of tasks or activities that need to be completed. For example, if you run a café, your workflow might include opening procedures, food preparation, customer service, and closing tasks.
• Processes: Break down how specific functions are carried out. This could include order fulfillment, inventory management, or scheduling staff.
• Activities: Highlight recurring tasks like managing customer inquiries, restocking supplies, or maintaining equipment.

Showcasing your daily activities will ensure that the stakeholders know that you've thought through the daily grind and have systems in place to maintain efficiency and productivity.

Phase 2: Resource management

Resource management shows stakeholders that you have everything in place to keep the business running smoothly.

It proves you’ve planned for the right team, tools, and budget to handle daily operations without hiccups. You should include the following information in the resource management phase:

Human Resources: Detail the roles and responsibilities of your team. For example, how many employees will you need?

What skills are essential for your operations? Will the work be done in shifts? What is your plan for hiring resources? Answer all the questions to clear the doubts of your stakeholders.

Equipment and Tools: Specify the machinery, software, or tools necessary to perform tasks. For instance, a graphic design company might list design software and high-performance computers.

Additionally, include the need for furniture, equipment to support your team, and other essential resources to ensure smooth operations.

Financial Resources: Mention budgets allocated for daily operations, maintenance, and unexpected expenses. Also, mention what your plan B is if plan A fails due to unexpected circumstances.

Explain how you plan to handle emergency situations, including the funds set aside for such scenarios. Highlight backup resources or systems in place to ensure production continues smoothly, even during unexpected disruptions.

Phase 3: Production and delivery

This is a crucial phase that must be showcased in your business plan. If you don’t present it effectively, you risk failing to impress your stakeholders.

It’s not just about resources, management, or HR — stakeholders have the right to know how you’ll handle production and delivery. How will you produce your product, and how will it reach the customer?

Showing this builds trust and gives stakeholders confidence that you have a solid plan to get your product into the market efficiently.

Here’s how you can demonstrate the production and delivery phase in a business plan:

Production: Let’s start with how your product or service is created. Break down the entire process step by step.

For example, if you sell handmade products, explain where you source your materials, how the production takes place, and what quality checks are done before packaging. Each step should highlight efficiency and attention to detail.

This shows stakeholders you have a clear, reliable process that ensures consistent quality.

Supply Chain: Next, focus on your suppliers and logistics. Who provides your raw materials or inventory? Are they local or international? Also, explain how these materials reach you—whether it’s through regular deliveries, bulk shipments, or just-in-time inventory systems.

Highlight partnerships with reliable suppliers and logistics providers, which reassures stakeholders that your supply chain is stable and won’t disrupt your operations.

Delivery: Finally, explain how your product or service gets to your customers. Will you rely on physical shipping, digital downloads, or in-person delivery? For physical goods, mention whether you’ll use courier services, in-house delivery, or third-party logistics.

For digital products, talk about platforms or systems you’ll use for smooth, instant delivery. This step is crucial because it directly impacts customer satisfaction and brand reputation.

Phase 4: Quality control and improvement

Stakeholders want to know you’re committed to delivering quality and continuously improving. It’s not just about maintaining customer satisfaction—it’s about building trust and staying competitive in the market.

Including this phase shows you have a plan to monitor performance, address issues quickly, and adapt to changing demands.

Add the following information in this phrase while writing your business plan:

Quality control measures

• Detail the specific steps you’ll take to maintain high standards. These could include:
• Periodic checks on equipment, products, or services to ensure everything runs smoothly.
• Rigorous testing for new products or updates before they reach customers. For example, a tech company might conduct beta testing to identify bugs.
• Ensure adherence to industry regulations and standards. This is crucial for businesses in sectors like healthcare, food, or finance.

Feedback Mechanisms

• Explain how you’ll collect customer feedback through surveys, reviews, or direct communication.
• Inform customers about the channels, forms, and platforms so they can reach out directly to gather feedback.
• Also, inform customers how you will encourage them to provide feedback for the betterment of your product.

Continuous improvement

• Detail how you’ll use feedback and performance data to enhance your processes.
• How will you invest in ongoing training programs to upskill your team and keep them aligned with industry best practices?
• Inform about the pathway to go ahead by adopting new tools or software that streamline operations. For example, integrating AI can enhance customer service or predictive maintenance.

Following this strategic approach, you ensure your business plan stands out by showcasing a well-thought-out operational strategy.

What key questions do an operational business plan should address?

While crafting your operation plan in your business plan make sure it addresses the following question:

• What are the daily tasks or activities needed to run the business efficiently?
• Who is responsible within the team or departments to run your operations?
• What are the resources are required to successfully run your operations?
• How will tasks be completed to ensure consistent product or service standards?
• What are the contingency plans to handle emergencies or unexpected disruptions?

Expert tips for writing a standout operations plan

Writing the operations plan in a business plan is a complex task, but it becomes much easier when you apply expert tips. Here are a few tried and tested tips that you can use to make your operation plan in business plan writing task streamlined:

1) Include metrics for success:

Define clear performance indicators for your operations. For example, specify production output targets, delivery timeframes, or customer satisfaction scores. This helps track progress and demonstrates accountability.

2) Outline your capacity planning

Explain how you’ll manage operational capacity. Will you scale production during peak demand? Include details on equipment utilization, workforce scheduling, and inventory levels to show you can adapt efficiently.

3) Discuss supplier relationships

Go beyond listing suppliers, explain why you’ve chosen them. Highlight their reliability, quality standards, and how they align with your operational goals. This builds confidence in your supply chain stability.

4) Plan for scalability

Describe how your operations will evolve as the business grows. Include strategies for scaling production, hiring more staff, or expanding facilities. This shows you’re thinking ahead and can handle growth without disruptions.

5) Mind operational plan length

Keep your operational plan concise and focused. While it’s crucial to provide detailed information, avoid overwhelming stakeholders with unnecessary details. A well-structured operational plan should cover the essentials without becoming overly lengthy.

This concludes our tips for writing an operational plan in your business plan. Next, we’ll explore why an operational plan is essential and how it can set your business up for long-term success.

Importance of operations plan in business plan

Here’s a quick breakdown of why an operational plan is essential. Explore the table below to see how it impacts your business success.

Example of a well-structured Operations Plan

To help you understand the operation plan, we have prepared an example of a coffee-making company that will give you an overview of the operation plan section in the business plan.

Company Name: FreshBrew Coffee Co.

Industry: Specialty Coffee Retail