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Tips for Writing a Business Plan

Tips for Writing a Business Plan

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Published by James Brent

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Published by: James Brent on Apr 10, 2013
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Describe how you produce your products. If possible, provide a step-by-step process in a list or flowchart.
Investors will want to know all significant risks with producing your product. Let them know whether you are
adding significant value to the manufacturing process or assembling parts produced by others. Provide a
rationale for producing the product rather than outsourcing it. What are your relationships with subcontractors
and parts suppliers? What are the potential supply problems?

Describe your operational plan detailing how your business develops and creates products. Pay close attention
to operational issues. Your operational plan should address how you will use the capital you are requesting for
the following operational issues:

Manufacturing process and capacity:

n What are your proprietary techniques for your product or its development?

n How will this affect production and the ability of competition to copy your products?

n What are your processes for developing products?

n How much work are you outsourcing?

n What is the maximum output capacity of your manufacturing process and facilities?

n How will your manufacturing process accommodate growth in sales volume?

n What kinds of security measures do you have?

n How can you anticipate defect rates in your manufacturing process?

n How much overhead will you have?


Materials and equipment:

n What machinery do you need?

n What raw materials do you need?

n How much do equipment and materials cost?

n What is the availability of raw materials?

n How stable are prices?

Labor requirements:

n What human resources do you need?

n How much will labor cost?

n How will you distribute work?

n How much can you automate?


n Who are your suppliers?

n What is your business relationship with suppliers?

Product support services:

n Who provides maintenance for your products?

n How much does maintenance cost?

n Will you offer support services or printed operational manuals?

Outside factors:

n What federal, state, or local regulations will impact your work?

n Will technological advancements affect your development or operations?

n Consider these questions on facilities requirements:

n How much office, manufacturing, retail, warehouse, or parking space do you require?

n What are the zoning restrictions for your location?

n How does your location serve your target market?

n Is it better to rent or buy your location, and why?


n What other businesses provide products or services for you? Discuss price, quality, expertise,
and availability of the products and services you outsource.


Quality Control:

n Since quality is critical to your success, reassure your readers that you cover it well. Briefly
describe your quality control procedures and the expertise of your QC personnel. List the quality
standards you use, and site your certifications.

Labor Force:

n What is the percentage of labor content in each product produced?

n How do you plan to hire and maintain a loyal workforce?

n What is the availability of skilled personnel at competitive labor rates?


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