The Operating Plan is a part of the business plan which describes facilities, equipment and physical location of your business. If you will produce any products, your business plan also requires a description of the manufacturing process. Information about inventory requirements and suppliers may also be included.
Writing the operating section of the business plan you have to show what is already done to get the business off the ground and what else needs to be done. Another necessary thing is to show that you understand the manufacturing process of producing your product or service.
Usually the operating plan is comprised by Stage of Development part and Production Process part.
Stage of Development section details the process of product or service manufacturing. It also classifies possible problems with the production process. Operating plan can be divided into the following subsections:
1. Risks. Describe the possible problems that may occur and interfere with the production process. Outline what you're going to do to avoid these risks.
2. Industry Association Membership. It would not be out of place to show your awareness of the laws and regulations that apply to your industry. Tell about your membership in industry organizations.
3. Suppliers. Include also the list of your suppliers with their prices, terms and conditions, description of alternative arrangements in the case of back order.
4. Quality control. Inform when and how you are going to provide quality control, which standards will be used in this process.
The Production Process section is the second part of the operating part. While the Stage of Development part gives general overview, the Production Process section concretizes your daily activities.
There are some obligatory details to be included in this section. Among them:
1. The physical location: what type of buildings you have, its size and location. Drawings of the building, copies of lease agreements, recent real estate appraisals may also be included. Give the reasons for your choice of the land or buildings.
2. Equipment. Everything mentioned above concerns equipment as well. Besides you need include some additional information about equipment’s worth and cost.
3. Assets. Land, buildings, inventory, equipment, furniture, and vehicles have to be included in the list of your assets, add legal descriptions and the worth of each asset.
4. Inventory. Tell about how you’re going to control inventory.
5. Materials. Describe what materials you need to produce product or service and where you're going to get it.
6. Production. Outline the terms of starting producing your product or service and how much time is required to produce a unit. You should foresee factors that may affect the time frame of production. Describe how you're going to deal rush orders and other potential problems.
7. Special requirements. Has your business any special necessities, such as water or power needs, ventilation or drainage? Provide for its details in the operating plan.
8. Viability. If you have provided any product testing, price testing, or prototype testing on your product or service, mention their results.
9. Cost. Explain how you’ve estimated product cost.
If any category does not apply to your business, just leave it out and continue. | 
