How to Write the Operations Plan in Your Business Plan

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!

How to write an effective operations plan in your business plan

When building an operational plan, you're not setting up new goals or crafting fresh strategies. Instead, you’re to focus on what your team is already working on and what needs to be done regularly—whether daily or weekly—to reach your main goals.

Here’s how to approach it:

Describe processes and workflows

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

List potential risks in the 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.

Outline your 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.

Mention your business location details

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.

Highlight relevant industry affiliations and associations

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.

Write about your vendor partnerships and agreements

Discuss the vendors you collaborate with to sell your products or services. 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.

Allocate resources

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.

Also, 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.

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.

Create a timeline

Outline the steps involved in delivering your service or creating one unit of your product, including the time required for each stage.

Identify any factors that could disrupt this workflow and share your strategies for managing these issues to avoid delays.

Establish performance metrics

Define measurable criteria for success. Metrics might include production efficiency, customer satisfaction scores, or adherence to quality standards.

If you’re pursuing certifications, describe the steps you’re taking to meet the necessary standards. Regularly tracking these metrics helps maintain high-quality outputs.

Implement Risk Management

Spot risks like supply delays or broken equipment. Plan how to fix these issues. Include ways to keep workers safe and backups for supplies and resources.

Detail your inventory and storage management

Describe how you store and manage the resources or products needed for your operations, along with any costs tied to storage or space. Effective inventory management helps maintain quality and ensures timely delivery to customers.

Describe your pricing strategy

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.

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.

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:

1. Begin with your strategic framework

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

2. 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.

3. 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.

4. Define clear objectives and responsibilities

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’ll 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:

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

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

Three: Who’s 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.

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.

A business operational plan, unlike a strategic plan, talks about execution. Operational plans outline the daily responsibilities, tasks, and other operations your team needs to know off to work effectively.

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 a functional operational plan, 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.

4 key elements of an operational plan

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

1. Strategic Plan

Your business 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.

2. Goals

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
• Churn rate

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.

Conclusion

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.