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How To Write the Operations Plan Section of the Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Stage of Development Section

Production process section, the bottom line, frequently asked questions (faqs).

The operations plan is the section of your business plan that gives an overview of your workflow, supply chains, and similar aspects of your business. Any key details of how your business physically produces goods or services will be included in this section.

You need an operations plan to help others understand how you'll deliver on your promise to turn a profit. Keep reading to learn what to include in your operations plan.

Key Takeaways

• The operations plan section should include general operational details that help investors understand the physical details of your vision.
• Details in the operations plan include information about any physical plants, equipment, assets, and more.
• The operations plan can also serve as a checklist for startups; it includes a list of everything that must be done to start turning a profit.

In your business plan , the operations plan section describes the physical necessities of your business's operation, such as your physical location, facilities, and equipment. Depending on what kind of business you'll be operating, it may also include information about inventory requirements, suppliers, and a description of the manufacturing process.

Keeping focused on the bottom line will help you organize this part of the business plan.

Think of the operating plan as an outline of the capital and expense requirements your business will need to operate from day to day.

You need to do two things for the reader of your business plan in the operations section: show what you've done so far to get your business off the ground and demonstrate that you understand the manufacturing or delivery process of producing your product or service.

When you're writing this section of the operations plan, start by explaining what you've done to date to get the business operational, then follow up with an explanation of what still needs to be done. The following should be included:

Production Workflow

A high-level, step-by-step description of how your product or service will be made, identifying the problems that may occur in the production process. Follow this with a subsection titled "Risks," which outlines the potential problems that may interfere with the production process and what you're going to do to negate these risks. If any part of the production process can expose employees to hazards, describe how employees will be trained in dealing with safety issues. If hazardous materials will be used, describe how these will be safely stored, handled, and disposed.

Industry Association Memberships

Show your awareness of your industry's local, regional, or national standards and regulations by telling which industry organizations you are already a member of and which ones you plan to join. This is also an opportunity to outline what steps you've taken to comply with the laws and regulations that apply to your industry. 

Supply Chains

An explanation of who your suppliers are and their prices, terms, and conditions. Describe what alternative arrangements you have made or will make if these suppliers let you down.

Quality Control

An explanation of the quality control measures that you've set up or are going to establish. For example, if you intend to pursue some form of quality control certification such as ISO 9000, describe how you will accomplish this.

While you can think of the stage of the development part of the operations plan as an overview, the production process section lays out the details of your business's day-to-day operations. Remember, your goal for writing this business plan section is to demonstrate your understanding of your product or service's manufacturing or delivery process.

When writing this section, you can use the headings below as subheadings and then provide the details in paragraph format. Leave out any topic that does not apply to your particular business.

Do an outline of your business's day-to-day operations, including your hours of operation and the days the business will be open. If the business is seasonal, be sure to say so.

The Physical Plant

Describe the type, site, and location of premises for your business. If applicable, include drawings of the building, copies of lease agreements, and recent real estate appraisals. You need to show how much the land or buildings required for your business operations are worth and tell why they're important to your proposed business.

The same goes for equipment. Besides describing the equipment necessary and how much of it you need, you also need to include its worth and cost and explain any financing arrangements.

Make a list of your assets , such as land, buildings, inventory, furniture, equipment, and vehicles. Include legal descriptions and the worth of each asset.

Special Requirements

If your business has any special requirements, such as water or power needs, ventilation, drainage, etc., provide the details in your operating plan, as well as what you've done to secure the necessary permissions.

State where you're going to get the materials you need to produce your product or service and explain what terms you've negotiated with suppliers.

Explain how long it takes to produce a unit and when you'll be able to start producing your product or service. Include factors that may affect the time frame of production and describe how you'll deal with potential challenges such as rush orders.

Explain how you'll keep  track of inventory .

Feasibility

Describe any product testing, price testing, or prototype testing that you've done on your product or service.

Give details of product cost estimates.

Once you've worked through this business plan section, you'll not only have a detailed operations plan to show your readers, but you'll also have a convenient list of what needs to be done next to make your business a reality. Writing this document gives you a chance to crystalize your business ideas into a clear checklist that you can reference. As you check items off the list, use it to explain your vision to investors, partners, and others within your organization.

What is an operations plan?

An operations plan is one section of a company's business plan. This section conveys the physical requirements for your business's operations, including supply chains, workflow , and quality control processes.

What is the main difference between the operations plan and the financial plan?

The operations plan and financial plan tackle similar issues, in that they seek to explain how the business will turn a profit. The operations plan approaches this issue from a physical perspective, such as property, routes, and locations. The financial plan explains how revenue and expenses will ultimately lead to the business's success.

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How to Write an Operations Plan Section of your Business Plan

Free Operations Plan Template

Ayush Jalan

• December 14, 2023

Your business plan is an elaborate set of instructions stating how to run your business to achieve objectives and goals. Each section describes a part of the process of reaching your desired goal. Similarly, the operations plan section of your business plan explains the production and supply of your product.

An operations plan is formed to turn plans into actions. It uses the information you gathered from the analysis of the market , customers, and competitors mentioned in the previous parts of your business plan and allows for the execution of relevant strategies to achieve desired results.

What Is an Operations Plan?

An operations plan is an in-depth description of your daily business activities centered on achieving the goals and objectives described in the previous sections of your business plan. It outlines the processes, activities, responsibilities of various departments and the timeframe of the execution.

The operations section of your business plan explains in detail the role of a team or department in the collective accomplishment of your goals. In other words, it’s a strategic allocation of physical, financial, and human resources toward reaching milestones within a specific timeframe.

A well-defined operational plan section of your business plan should be able to answer the following questions:

• Who is responsible for a specific task or department?
• What are the tasks that need to be completed?
• Where will these operations take place?
• When should the tasks be completed? What are the deadlines?
• How will the tasks be performed? Is there a standard procedure?
• How much is it going to cost to complete these tasks?

How to Write an Operations Plan Section?

Creating an operational plan has two major stages, both addressing different aspects of your company. The first stage includes the work that has been done so far, whereas the second stage describes it in detail.

1. Development Phase

In this stage, you mention what you’ve done to get your business operations up and running. Explain what you aim to change and improvise in the processes. These are the elements your development section will contain:

Production workflow

: Explain all the steps involved in creating your product. This should be a highly informative, elaborate description of the steps. Here, you also mention any inefficiencies that exist and talk about the actions that need to be taken to tackle them.

Supply chains

Quality control, 2. manufacturing phase.

The development stage acquaints the reader with the functioning of your business, while the manufacturing stage describes the day-to-day operation.

This includes the following elements:

Outline of daily activities:

Tools and equipment:, special requirements:, raw materials:, productions:, feasibility:, why do you need an operations plan.

An operations plan is essentially an instruction manual about the workings of your business. It offers insight into your business operations. It helps investors assess your credibility and understand the structure of your operations and predict your financial requirements.

An operations plan reflects the real-time application of a business plan.

Internally, an operations plan works as a guide, which helps your employees and managers to know their responsibilities. It also helps them understand how to execute their tasks in the desired manner—all whilst keeping account of deadlines.

The operations plan helps identify and cut the variances between planned and actual performance and makes necessary changes. It helps you visualize how your operations affect revenue and gives you an idea of how and when you need to implement new strategies to maximize profits.

Advantages of Preparing an Operations Plan:

Offers clarity:, contains a roadmap:, sets a benchmark:, operations plan essentials.

Now that you have understood the contents of an operations plan and how it should be written, you can continue drafting one for your business plan. But before doing so, take a look at these key components you need to remember while creating your operational plan.

• Your operations plan is fundamentally a medium for implementing your strategic plan. Hence, it’s crucial to have a solid strategic plan to write an effective operations plan.
• Focus on setting SMART goals and prioritizing the most important ones. This helps you create a clear and crisp operations plan. Focusing on multiple goals will make your plan complicated and hard to implement.
• To measure your goals, use leading indicators instead of lagging indicators. Leading indicators is a metric that helps you track your progress and predict when you will reach a goal. On the other hand, lagging indicators can only confirm a trend by taking the past as input but cannot predict the accomplishment of a goal.
• It is essential to choose the right Key Performance Indicators (KPIs) . It is a good practice to involve all your teams while you decide your KPIs.
• An operations plan should effectively communicate your goals, metrics, deadlines, and all the processes.

Now you’re all set to write an operations plan section for your business plan . To give you a headstart, we have created an operations plan example.

Operations Plan Example

Operations plan by a book publishing house

Track and Accomplish Goals With an Operations Plan

Drafting the operations plan section of your business plan can be tricky due to the uncertainties of the business environment and the risks associated with it. Depending on variables like your market analysis, product development, supply chain, etc., the complexity of writing an operations plan will vary.

The core purpose here is to put all the pieces together to create a synergy effect and get the engine of your business running. Create an effective operations plan to convey competence to investors and clarity to employees.

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Frequently Asked Questions

What role does the operations plan play in securing funding for a business.

The operations plan defines the clear goals of your business and what actions will be taken on a daily basis to reach them. So, investors need to know where your business stands, and it will prove the viability of the goals helping you in getting funded.

What are the factors affecting the operations plan?

• The mission of the company
• Goals to be achieved
• Finance and resources your company will need

Can an operations plan be created for both start-up and established businesses?

Yes, both a startup and a small business needs an operations plan to get a better idea of the roadmap they want for their business.

About the Author

Ayush is a writer with an academic background in business and marketing. Being a tech-enthusiast, he likes to keep a sharp eye on the latest tech gadgets and innovations. When he's not working, you can find him writing poetry, gaming, playing the ukulele, catching up with friends, and indulging in creative philosophies.

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Operations Plan

• Lesson Materials Operations Plan Worksheet
• Completion time About 40 minutes

The operations section of your business plan is where you explain – in detail – you company's objectives, goals, procedures, and timeline. An operations plan is helpful for investors, but it's also helpful for you and employees because it pushes you to think about tactics and deadlines.

In the previous course, you outlined your company's strategic plan, which answers questions about your business mission. An operational plan outlines the steps you'll take to complete your business mission.

Your operations plan should be able to answer the following:

• Who – The personnel or departments who are in charge of completing specific tasks.
• What – A description of what each department is responsible for.
• Where – The information on where daily operations will be taking place.
• When –The deadlines for when the tasks and goals are to be completed.
• How much – The cost amount each department needs to complete their tasks.

In this session, we explain each item to include in your operations plan.

Goals and Objectives

The key to an operations plan is having a clear objective and goal everyone is focused on completing. In this section of your plan, you'll clearly state what your company's operational objective is.

Your operational objective is different than your company's overall objective. In Course One , you fleshed out what your strategic objective was. Your operational objective explains how you intend to complete your strategic objective.

In order to create an efficient operational objective, think SMART:

• Specific – Be clear on what you want employees to achieve.
• Measurable – Be able to quantify the goal in order to track progress.
• Attainable & Realistic – It's great to be ambitious but make sure you aren't setting your team up for failure. Create a goal that everyone is motivated to complete with the resources available.
• Timely – Provide a deadline so everyone has a date they are working towards.

Different departments will have different operational objectives. However, each department objective should help the company reach the main objective. In addition, operational objectives change; the objectives aren't intended to be permanents or long term. The timeline should be scheduled with your company's long-term goals in mind.

Let's look at the following example for a local pizza business objective:

• Strategic objective : To deliver pizza all over Eastern Massachusetts.
• Technology department operational objective : To create a mobile app by January 2017 to offer a better user experience.
• Marketing department operational objective : To increase website visitors by 50% by January 2017 by advertising on radio, top local food websites, and print ads.
• Sales department operational objective : To increase delivery sales by 30%, by targeting 3 of Massachusetts's largest counties.

Sales department operational objective: To increase delivery sales by 30%, by targeting 3 of Massachusetts's largest counties.

Production Process

After you create your objectives, you have to think strategically on how you're going to meet them. In order to do this, each department (or team) needs to have all the necessary resources for the production process.

Resources you should think about include the following:

• Suppliers – do you have a supplier (or more) to help you produce your product?
• Technology team: app developing software
• Marketing team: software licenses for website analytical tools
• Sales team: headsets, phone systems or virtual phone system technology
• Cost – what is the budget for each department?

In addition to the production process, you'll also need to describe in detail your operating process. This will demonstrate to investors that you know exactly how you want your business to run on a day-to-day basis.

Items to address include:

• Location – where are employees working? Will you need additional facilities?
• Work hours – will employees have a set schedule or flexible work schedule?
• Personnel – who is in charge of making sure department tasks are completed?

Creating a timeline with milestones is important for your new business. It keeps everyone focused and is a good tracking method for efficiency. For instance, if milestones aren’t being met, you'll know that it's time to re-evaluate your production process or consider new hires.

Below are common milestones new businesses should plan for.

When you completed your Management Plan Worksheet in the previous course, you jotted down which key hires you needed right away and which could wait. Make sure you have a good idea on when you would like those key hires to happen; whether it’s after your company hits a certain revenue amount or once a certain project takes off.

Production Milestones

Production milestones keep business on track. These milestones act as "checkpoints" for your overall department objectives. For instance, if you want to create a new app by the end of the year, product milestones you outline might include a beta roll out, testing, and various version releases.

Other product milestones to keep in mind:

• Design phase
• Product prototype phase
• Product launch
• Version release

Market Milestones

Market milestones are important for tracking efficiency and understanding whether your operations plan is working. For instance, a possible market milestone could be reaching a certain amount of clients or customers after a new product or service is released.

A few other market milestones to consider:

• Gain a certain amount of users/clients by a certain time
• Signing partnerships
• Running a competitive analysis
• Performing a price change evaluation

Financial Milestones

Financial milestones are important for tracking business performance. It's likely that a board of directors or investors will work with you on creating financial milestones. In addition, in startups, it's common that financial milestones are calculated for 12 months.

Typical financial milestones include:

• Funding events
• Revenue and profit goals
• Transaction goals

In summary, your operations plan gives you the chance to show investors you know how you want your business to run. You know who you want to hire, where you want to work, and when you expect projects to be completed.

Download the attached worksheet and start putting your timelines and milestones together on paper.

Talk about this lesson

Expertly Writing the Operations Plan Section of Your Business Plan

Written by Dave Lavinsky

Operational plans are important for any effective business plan . They provide a roadmap for how the company will operate on a day-to-day basis. The operational strategic plan should outline the company’s goals and objectives, as well as the strategies and actions that will be taken to achieve them.

Business Operations Section of a Business Plan

The operational plan or operations section of a business plan is where you describe how your business will function on a day-to-day basis. This includes everything from the resources you’ll need to run your business, to the people who will be responsible for carrying out various tasks, to the processes and procedures you’ll use to get work done.

Purpose of the Operational Plan Section of a Business Plan

An operational plan is essential for any business because it provides a roadmap for how it will function. It ensures that everyone involved in the business is on the same page and knows what their roles and responsibilities are. Having an operational plan also makes it easier to track and accomplish goals, while driving cost reduction and improving overall results. Finally, your operations plan section helps show readers that you can turn your vision and goals into reality.

Benefits of an Operations Plan Include:

• Identifying the key processes your company must perform to achieve its goals
• Mapping out short-term and long-term milestones so you have specific goals and a roadmap for achieving them
• Understanding the human and other resources required to execute your vision

Writing an Operations Section of a Business Plan

When writing the operations section of a business plan, there are a few things you’ll want to keep in mind. First, be sure to describe the resources that will be required to run your business. This includes everything from office space and equipment to human resources. Next, detail the processes and procedures that will be used to get work done. Be as specific as possible so that there is no confusion about how things should be done. Finally, identify the people who will be responsible for carrying out various tasks. This includes both employees and contractors.

Tracking Key Performance Indicators with Operational Planning

As a business owner, it’s important to track your progress against your company goals. This is where KPIs come in. KPIs are performance indicators and an important part of creating a strategic plan that can help you track your progress and identify areas of improvement. You should document your KPIs in the operation plan of your business plan

There are a few things to keep in mind when choosing KPIs for your business:

• Make sure that the KPIs you choose are relevant to your company’s goals.
• Choose KPIs that can be easily measured.
• Avoid choosing too many KPIs, as this can be overwhelming. Stick to a few key ones that will give you the most insights into your business’s progress.
• Set realistic targets for each KPI. This will help you track your progress and identify areas of improvement.
• Review your KPIs on a regular basis to ensure that they are still relevant and accurate, while also being in line with strategic plans.

Some Examples of KPIs that You Could Track with an Operational Plan

When creating an operations plan, it’s important to track key performance indicators (KPIs) to measure your progress against your company goals. Some examples of KPIs that you could track are:

• Sales growth
• Delivery times
• Customer satisfaction ratings
• Product Quality
• Production Process
• Employee retention
• Operational costs

Creating an operational plan with KPIs will help you track your progress, identify areas of improvement, improve strategic planning and make necessary changes to reach your company’s strategic objective.

Example of an Operations Section of a Business Plan

Here is what an operations plan example might look like:

The XYZ Company will require the following resources to operate:

• 1,000 square feet of office space
• $10,000 for office furniture and equipment
• 3 full-time employees
• 2 part-time employees
• 1 contractor

The XYZ Company will use the following processes and procedures to get work done:

• All new clients will be contacted within 24 hours of the initial inquiry
• Initial consultations will be scheduled within 48 hours of contact
• Proposals will be presented within 10 days of the initial consultation
• Work will begin within 2 weeks of proposal acceptance

The following people will be responsible for carrying out these tasks:

• John Smith, full-time employee, will contact new clients
• Jane Doe, full-time employee, will schedule initial consultations
• John Smith and Jane Doe will conduct initial consultations
• John Smith and Jane Doe will prepare proposals
• John Smith and Jane Doe will manage projects
• Joe Johnson, contractor, will provide support as needed

An operations plan is a critical part of any business planning work. It provides a roadmap for how the business will function on a day-to-day basis. This includes everything from the resources you’ll need to run your business, to the people who will be responsible for carrying out various tasks, to the processes and procedures you’ll use to get work done. Having operational plans in place will ensure that everyone involved in the business is on the same page and knows what their roles and responsibilities are. It will also make it easier to track and accomplish goals.

Key Takeaways

A few key things to remember when writing your operations plan:

• Describe the resources that will be required to run your business
• Detail the processes and procedures that will be used to get work done
• Identify the people who will be responsible for carrying out various tasks

Following these tips will help you create a comprehensive and effective operations plan for your business.

A strategic plan is one of the critical components of any successful company. The operations plan outlines the roadmap for your business, outlining the steps you need to take to achieve your goals. If you’re not sure where to start, we can help. Our team of experts has created a comprehensive business plan template that will guide you through the process of creating an operational plan tailored to your specific business needs. Ready to get started? Download our template today and get access to all the tools and information you need to create a thriving business.

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Operational Planning: How to Make an Operations Plan

The operations of your business can be defined as the sum of all the daily activities that you and your team execute to create products or services and engage with your customers, among other critical business functions. While organizing these moving parts might sound difficult, it can be easily done by writing a business operational plan. But before we learn how to make one, let’s first understand what’s the relationship between strategic and operational planning.

Operational Planning vs. Strategic Planning

Operational planning and strategic planning are complementary to each other. This is because strategic plans define the business strategy and the long-term goals for your organization, while operational plans define the steps required to achieve them.

What Is a Strategic Plan?

A strategic plan is a business document that describes the business goals of a company as well as the high-level actions that will be taken to achieve them over a time period of 1-3 years.

What Is an Operational Plan?

Operational plans map the daily, weekly or monthly business operations that’ll be executed by the department to complete the goals you’ve previously defined in your strategic plan. Operational plans go deeper into explaining your business operations as they explain roles and responsibilities, timelines and the scope of work.

Operational plans work best when an entire department buys in, assigning due dates for tasks, measuring goals for success, reporting on issues and collaborating effectively. They work even better when there’s a platform like ProjectManager , which facilitates communication across departments to ensure that the machine is running smoothly as each team reaches its benchmark. Get started with ProjectManager for free today.

What Is Operational Planning?

Operational planning is the process of turning strategic plans into action plans, which simply means breaking down high-level strategic goals and activities into smaller, actionable steps. The main goal of operational planning is to coordinate different departments and layers of management to ensure the whole organization works towards the same objective, which is achieving the goals set forth in the strategic plan .

How to Make an Operational Plan

There’s no single approach to follow when making an operation plan for your business. However, there’s one golden rule in operations management : your strategic and operational plans must be aligned. Based on that principle, here are seven steps to make an operational plan.

• Map business processes and workflows: What steps need to be taken at the operations level to accomplish long-term strategic goals?
• Set operational-level goals: Describe what operational-level goals contribute to the achievement of larger strategic goals.
• Determine the operational timeline: Is there any time frame for the achievement of the operational plan?
• Define your resource requirements: Estimate what resources are needed for the execution of the operational plan.
• Estimate the operational budget: Based on your resource requirements, estimate costs and define an operational budget.
• Set a hiring plan: Are there any skills gaps that need to be filled in your organization?
• Set key performance indicators: Define metrics and performance tracking procedures to measure your team’s performance.

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Operational Plan Template

Use this free Operational Plan Template for Word to manage your projects better.

What Should be Included in an Operational Plan?

Your operational plan should describe your business operations as accurately as possible so that internal teams know how the company works and how they can help achieve the larger strategic objectives. Here’s a list of some of the key elements that you’ll need to consider when writing an operational plan.

Executive Summary

An executive summary is a brief document that summarizes the content of larger documents like business plans, strategic plans or operation plans. Their main purpose is to provide a quick overview for busy stakeholders.

Operational Budget

An operational budget is an estimation of the expected operating costs and revenues for a given time period. As with other types of budget, the operational budget defines the amount of money that’s available to acquire raw materials, equipment or anything else that’s needed for business operations.

It’s important to limit your spending to stay below your operational budget, otherwise, your company could run out of resources to execute its normal activities. You can use our free operating budget template for Excel to track your operating costs.

Operational Objectives

It’s essential to align your operational objectives with your strategic objectives. For example, if one of your strategic objectives is to increase sales by 25 percent over the next three years, one possible operational objective would be to hire new sales employees. You should always grab your strategic plan objectives and turn them into one or multiple action items .

Processes & Workflows

Explain the various business processes, workflows and tasks that need to be executed to achieve your operational objectives. Make sure to explain what resources are needed, such as raw materials, equipment or human resources.

Operational Timeline

It’s important to establish a timeline for your operational plan. In most cases, your operational plan will have the same length as your strategic plan, but in some scenarios, you might create multiple operational plans for specific purposes. Not all operational plans are equal, so the length of your operational timeline will depend on the duration of your projects , workflows and processes.

Hiring Plan

Find any skills gap there might be in your team. You might need to hire a couple of individuals or even create new departments in order to execute your business processes .

Quality Assurance and Control

Most companies implement quality assurance and control procedures for a variety of reasons such as customer safety and regulatory compliance. In addition, quality assurance issues can cost your business millions, so establishing quality management protocols is a key step in operational planning.

Key Performance Indicators

It’s important to establish key performance indicators (KPIs) to measure the productivity of your business operations. You can define as many KPIs as needed for all your business processes. For example, you can define KPIs for marketing, sales, product development and other key departments in your company. This can include product launch deadlines, number of manufactured goods, number of customer service cases closed, number of 5-star reviews received, number of customers acquired, revenue increased by a certain percentage and so on.

Risks, Assumptions and Constraints

Note any potential risks, assumptions and time or resource constraints that might affect your business operations.

Free Operational Plan Template

Leverage everything you’ve learned today with our template. This free operational plan template for Word will help you define your budget, timeline, KPIs and more. It’s the perfect first step in organizing and improving your operations. Download it today.

What Are the Benefits of Operational Planning?

Every plan has a massive effect on all team members involved, and those can be to your company’s benefit or to their detriment. If it’s to their detriment, it’s best to find out as soon as possible so you can modify your operational plan and pivot with ease.

But that’s the whole point of operational planning: you get to see the effect of your operations on the business’s bottom line in real time, or at every benchmark, so you know exactly when to pivot. And with a plan that’s as custom to each department as an operational plan, you know exactly where things go wrong and why.

How ProjectManager Can Help with Operational Planning

Creating and implementing a high-quality operational plan is the best way to ensure that your organization starts out a project on the right foot. ProjectManager has award-winning project management tools to help you craft and execute such a plan.

Gantt charts are essential to create and monitor operational plans effectively. ProjectManager helps you access your Gantt chart online so you can add benchmarks for operational performance reviews. You can also create tasks along with dependencies to make the operation a surefire success.

Whether you’re a team of IT system administrators, marketing experts, or engineers, ProjectManager includes robust planning and reporting tools. Plan in sprints, assign due dates, collaborate with team members and track everything with just the click of a button. Plus, we have numerous ready-made project reports that can be generated instantly, including status reports, variance reports, timesheet reports and more.

Related Operations Management Content

• Operational Strategy: A Quick Guide
• Operations Management: Key Functions, Roles and Skills
• Operational Efficiency: A Quick Guide
• Using Operational Excellence to Be More Productive

Operational planning isn’t done in a silo, and it doesn’t work without the full weight of the team backing it up. Ensure that your department is successful at each benchmark. ProjectManager is an award-winning pm software dedicated to helping businesses smooth out their operational plans for a better year ahead. Sign up for our free 30-day trial today.

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What Is the Operational Plan Section of the Business Plan?

Learning what an operation plan is and learning how to make it is something critical to any business. 3 min read updated on February 01, 2023

An operation plan section of the business plan is an essential part of any business. Learning what an operation plan is and learning how to make it is something critical to any business. Here are the main things you need to know about an operation plan.

Definition of an Operation Plan

An operation plan is a guiding path for the business to follow in order to achieve all of its goals and objectives described in the general business plan.

The operation plan mainly includes details about the people responsible for completing the required actions, and all the costs and KPIs (key performance indicators) for these actions to be accomplished.

In order for any business to be stable in the long run, the operation plan must be updated regularly in order to ensure the stability of the business.

What Is the Operations Plan Section and How to Properly Make It

The section of the operations plan which is included in the business plan mainly specifies all the physical requirements for the operation of the business. These physical requirements mainly include equipment, facilities, and location.

In order to make a complete business plan , three things need to be clarified to the reader:

• Everything was done for the business from the start to reach its current position
• Acknowledgment that you know exactly what should be done for any business to get off the ground
• Full awareness and understanding of the delivering and manufacturing processes of the service or the product you offer.

Operating Section of the Business Plan: Stage of Development Section

While you're developing the stage of development section, you should begin with the previous procedures that have been taken so far, along with mentioning what is best to be done in the future, it should be as follows:

• Production workflow : In this, you will describe in detail the exact steps of how your service or your product will be made, along with the acknowledgment of any possible problem that could be faced during the process.
• In addition, you will include details about how to train the employees to solve any upcoming problem and avoid any risks as much as possible. Along with mentioning any dangerous equipment that will be used, and the proper ways of using and storing these pieces of equipment.
• Supply chains: In this section you clarify the identity of the suppliers, the prices they offer, and their terms and conditions, In addition to providing the possible alternatives in case it doesn't work out with the current suppliers
• As an example, in case you are willing to have a specific quality control certificate, like the ISO 9000, you should identify and explain the required procedures.

What Are the Key Components to Include in an Operational Plan Regarding the Business Organization?

Here are the main components to be included in the operational plan:

• Most of the tasks in the operation plan are carried out by the company's managers and the employees under them, so it is essential that to clarify their identity, describe their qualifications, and describe the jobs and tasks which they will be responsible for.
• Providing an organizational chart to describe the structural hierarchy of the business.
• The philosophy and tactics of the company, and the role they play in the development and stability of the business.
• A statistical measurement of the performance of the employees and managers, and the ways of reward and punishment.
• Explain the methods that you will use to find the right employees, putting into consideration the required qualifications needed, the job description of each one, and the compensation rates that you will offer.
• In case the business will need any outside consultants it should be noted, along with the specific functions required from any outsider consultant or employee.

In the end, one could conclude that the success or a failure of a business depends heavily on the quality of the business and operation plan put forward.

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How to write an operational plan for your business

Table of Contents

What is an operational plan? 

What should your business’s operational plan include , objectives , production , finances , simplify your operational finances and more with countingup.

If you plan to start a small business, you’ll need to prepare for success. A business plan will help you organise your services and structure to set up and earn funding. But an operational plan is essential to managing your day-to-day. 

This guide will cover how to write an operational plan for your business, including: 

• What is an operational plan?
• How can an operational plan help your business? 
• What should your operations plan include?

An operational plan outlines the physical requirements of running your business and how you’ll function daily. It can be its own document or a section of your business plan. Either way, the operational plan answers essential questions about how you’ll make your business earn a profit. 

This plan covers your business’s who, what, where, when, and how much, similar to a company description . But your operational plan dives into the nitty-gritty details and outlines exactly how you’ll achieve them. 

Writing an operational plan for your business will help you determine the essential materials to set up. The more detailed it is, the easier it will be to organise your business and increase productivity. As your operations grow, you can update the plan to fit your needs, so check in with it regularly. 

If you wonder how to write an operational plan for your business, you’ll need to know some key components. We’ll outline the essentials. 

The first step to outlining your operations is considering your objectives . Objectives are the specific things you want to achieve for your business in a particular time frame. For example, you may want to achieve profitability within the first six months. Or you might aim to use paid advertising to double your client base in a year. 

Create different objectives based on the departments or sectors of your business. For example, you can form financial, marketing, sales, and development objectives. To develop effective plans, use the SMART method, short for specific, measurable, achievable, relevant, and time-based. 

Next, you’ll have to consider the logistics of where you’ll run your business. Are your operations home-based or will you need an office or shop? If you need to find a space, outline where it will be and how you plan to do it. You may need to use a real estate or letting agency to purchase or let a space. 

So, discuss that process, when you plan to have a location, and how much you’ll spend. Costs will include things like rent, electricity, water, and any other elements you’ll need to include. For example, you might need to fit a cafe with kitchen equipment or decorate the space. 

If you already have an office or shop, provide the address. For a customer-facing shop or office, outline the working hours. 

Once you decide where you’ll run your business, you’ll need to consider the how. In this part, outline daily operating procedures. Which products or services will you provide? How will you offer them? Outline your structure and how you’ll achieve your objectives day-to-day.  

But your business procedures won’t be effective without a reliable production plan. If you need to develop a supply chain or keep an inventory , you’ll discuss that here. First, list which supplies, equipment, and technology you’ll need to run your business. Then, include which suppliers you’ll use to keep a stock of your products. 

Finally, detail what your production will cost by breaking it into sections. How much will you spend on your inventory each month as you start your business? What other regular expenses will you have?  

For example, if you run a coffee shop, you would outline which coffee supplier you’ll use and how much you’ll order at what cost. Then, you might include the cost of ordering baked goods for your shop and other things necessary for your business. Additional production costs might consist of shop rent, disposable cups, stirrers, milk etc. 

As you outline each aspect of your operations, consider the cost of running that aspect. Then, in the finances sections, bring each cost together. This section will help you get a broader picture of how much you’ll need to spend to run your business. 

This section also outlines where you’ll get the money to keep up these operations. Similarly, list prices for your products or services, plus the profit margin and sales goals. Then, touch on how you’ll accept payments and organise your finances. 

You might discuss what business current account you’ll use and how you’ll maintain your financial accounting . For example, you could explain how you’ll use Countingup , the business current account with built-in accounting software. 

The Countingup app offers valuable features that simplify your finances, automate processes, and help track your performance. Using a unique tool like this will make your operations more efficient and allow you to maintain accurate records. 

When writing your operational plan, it’s also important to consider your timeline. Consider outlining a daily working schedule and attaching times to different functional tasks. For example, how often will you reorder inventory? When do you plan to achieve your short-term, medium-term, and long-term objectives?

By organising your calendar, you can stay on top of what you need to do and when you need to do it. Plus, consider how you’ll manage your time well , which will help you run your business smoothly.  

Once you know how to write an operational plan for your business, you can earn money. But, financial management can be stressful and time-consuming when you run a business. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup offers features that help you stay on top of your operations. With automatic expense categorisation and receipt capture, you can stay on top of your business spending and maintain accurate records. Plus, the app lets you create and send invoices on the go, helping you receive the money you earn. The app will even notify you when the invoices are received and match them to payments. 

Start your three-month free trial today. 

Find out more here .

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10+ Operational Planning Examples to Fulfill your Strategic Goals

By Danesh Ramuthi , Oct 25, 2023

An operational plan is a comprehensive, action-driven document that maps out how daily activities within an organization fuel the journey towards achieving strategic objectives.

Essentially acting as the nexus between high-level strategy and practical execution, this plan ensures that every department, from human resources to specific departments, operates in synchrony, aligning their day-to-day activities with the broader strategic goals.

By streamlining processes, it fosters cohesive efforts amongst diverse cross-functional teams, ensuring that both individual team members and entire departments work together harmoniously towards the company goals.

Ready to sculpt your organization’s future? Start your journey with venngage business plan maker and leverage their expertly crafted operational plan templates . 

Click to jump ahead: 

Why is an operational plan important?

10 operational plan examples, what should an operational plan include, how to write an operational plan.

• Strategic plan vs operational plan: What is the difference? 

In summary 

An operational plan is crucial because it serves as a bridge between a company’s high-level strategic planning and its day-to-day activities, ensuring that the business operations align with the strategic goals. 

While a strategic plan provides a long-term vision, outlining the company’s objectives and goals to gain competitive advantages in the business environment, the operational plan outlines the specific actions, key elements and resource allocation required to achieve those objectives. 

For example, while the strategic plan might set a goal for revenue growth over the fiscal year, the operational plan provides a detailed roadmap, breaking down major projects, assigning responsibilities to individual team members or specific departments and setting key performance indicators to monitor progress and ensure the entire organization works together effectively.

Operational planning, in essence, transforms the strategic objectives into actionable plans, ensuring that the entire team, from department heads to diverse cross-functional teams, is aligned and works in tandem to support revenue growth, increase productivity, and achieve the desired outcomes. 

Operational plans, through a well-structured operational planning process, also provide a clear understanding of the day-to-day activities, allowing team members to know their roles, leading to better collaboration and synergy. 

Moreover, by having clear operational plan examples or templates, businesses can ensure realistic expectations, manage their operating budget effectively and track progress through key performance metrics, thus ensuring that the company stays on course to realize its long-term vision.

Operational plans play a pivotal role in the business landscape, bridging the gap between strategic vision and tangible actions. They translate the overarching goals of an organization into detailed procedures, ensuring that daily operations are in line with the desired strategic outcomes. 

In the section below, I will explore a few operational plan examples, shedding light on their structure and importance.

Business operational plan example

A business operational plan is a comprehensive document that elucidates the specific day-to-day activities of a company. It presents a detailed overview of the company’s organizational structure, management team, products or services and the underlying marketing and sales strategies. 

For businesses, irrespective of their size, an operational plan can prove invaluable. By laying down the business goals and objectives, it acts as a blueprint, guiding entrepreneurs through the creation and implementation of strategies and action plans. The planning process also incorporates mechanisms to track progress and performance. 

Additionally, for startups or companies looking to scale, a meticulously crafted operational plan can be pivotal in securing funds from potential investors and lenders.

Layered on this are details about the company’s organizational structure, its products or services and its marketing and sales strategies. 

The document also delineates the roles and responsibilities of each team member, especially the management and key personnel. Given the dynamic nature of the business environment, it is imperative to revisit and update the operational plan regularly.

Related: 15+ Business Plan Templates for Strategic Planning

Simple operational plan example

A simple operational plan, often used by startups or smaller enterprises, emphasizes the basics, ensuring that the fundamental aspects of the business operations are captured succinctly. While it might not delve into the intricacies of every operation, it provides an overview of day-to-day activities, highlighting the goals and objectives the business aims to achieve in the short term.

In essence, this plan revolves around core elements like the company’s main objectives for the fiscal year, key responsibilities assigned to individual team members and basic resource allocation. A straightforward market analysis might also be included, offering insights into customer needs and competitive advantages the business hopes to leverage.

Though simple, this operational plan example remains pivotal for the organization. It provides a roadmap, guiding team members through their daily responsibilities while ensuring that everyone is working together towards shared goals. It becomes especially essential for diverse cross-functional teams, where clarity of roles can lead to increased productivity.

Modern operational plan example

In today’s fast-paced business environment, the emphasis on efficiency and innovative processes is paramount. The modern operational plan example caters precisely to this demand. Ideal for organizations aiming to streamline processes and highlight workflow, this type of operational plan emphasizes a more dynamic approach to planning. 

It not only reflects the evolving nature of business operations but also provides a modern backdrop for content, ensuring that the presentation resonates with the current trends and technological advancements. The use of modern tools and platforms within this plan enables diverse cross-functional teams to work together seamlessly, ensuring that day-to-day activities are synchronized with the company’s long-term vision.

Furthermore, such an operational plan helps the entire organization stay agile, adapting rapidly to changes in the business environment and ensuring alignment with strategic goals.

Minimalist operational plan example

The minimalist operational plan example champions simplicity and clarity. By focusing on clear and concise business strategies, it eliminates any potential ambiguity, ensuring that team members and stakeholders have an unclouded understanding of the company’s objectives and goals. 

The minimalist design not only promotes easy comprehension but also aligns with the modern trend of decluttering, ensuring that only the most vital components of the operational planning process are highlighted. 

This approach leaves no room for confusion, streamlining the planning process and making sure that individual team members and departments are aligned with the business’s key objectives. 

Moreover, the flexibility offered by a minimalist design allows businesses to craft an operational plan template that is not only functional but also accurately reflects their brand image and core values, ensuring cohesion across all aspects of the business strategy.

Clean operational plan example

The clean operational plan example stands as a testament to this principle. Ideal for businesses that prioritize clarity and directness, this format seeks to convey goals and strategies without overwhelming stakeholders. 

While maintaining a neat and organized layout, it ensures that tasks are managed effectively, helping team members grasp their roles and responsibilities without getting lost in excessive details.

One of the primary advantages of a clean operational plan is its ability to eliminate distractions and focus solely on the critical aspects of operational planning. 

Such a design aids in making sure that diverse cross-functional teams can work together harmoniously ensuring that day-to-day activities align seamlessly with the company’s long-term vision. 

The simplicity of the clean operational plan not only supports revenue growth by ensuring efficiency but also reinforces the company’s strategic goals, making it an excellent tool in the arsenal of businesses that believe in clear communication and precise execution.  

An effective operational plan acts as a roadmap, directing how resources should be allocated and tasks should be performed to meet the company’s objectives. Here’s what a comprehensive operational plan should encompass:

• Goals and objectives : Whether short-term or long-term, the operational plan should define clear goals and objectives that align with the company’s strategic plan. This gives direction to the entire organization, ensuring everyone is working towards a common aim.
• Clear responsibilities for team members : It’s essential that team members understand their roles within the operational plan. By outlining who is responsible for what, the plan ensures that there are no overlaps or gaps in duties and that everyone has clarity on their day-to-day activities.
• Assigned tasks: Alongside responsibilities, specific tasks need to be allocated to individual team members or specific departments. This granularity in assignment ensures that every aspect of the operational plan is covered.
• Timeline: This provides a clear schedule for when each task or objective should start and finish. A well-defined timeline assists in monitoring progress and ensures that the plan stays on track.
• Budget and resources : Every operational plan needs to factor in the budget and resources available. This includes everything from the operating budget to human resources, ensuring that the business has everything it needs to execute the plan effectively.

Read Also: 6 Steps to Create a Strategic HR Plan [With Templates]

As businesses evolve, it’s essential to have a comprehensive and adaptive operational plan in place to navigate the complexities of the business environment. Here’s a step-by-step guide to help you craft an effective operational plan:

Step 1: Define your goals and objectives

Begin with a clear understanding of your strategic goals and objectives. This will act as a foundation for your operational plan. Ensure that these goals are in alignment with your company’s strategic plan and provide both short-term and long-term visions for the business.

Step 2: Determine roles and responsibilities

Identify the key stakeholders, department heads and team members who will play pivotal roles in executing the plan. Assign responsibilities to ensure that everyone knows their part in the planning process and day-to-day activities.

Step 3: Develop a timeline and milestones

Establish a clear timeline that breaks down the operational planning process. Include key milestones to track progress and ensure the plan remains on target.

Step 4: Allocate budget and resources

Determine the resources required to achieve your goals and objectives. This includes estimating the operating budget, identifying human resources needs and other resource allocations, ensuring you have everything in place to support revenue growth and other business needs.

Step 5: Outline day-to-day operations

Detail the day activities that are integral to the business operations. This will provide clarity on how different tasks and functions work together, ensuring efficiency across diverse cross-functional teams.

Step 6: Monitor and measure performance

Integrate key performance metrics and indicators to regularly monitor progress. Using both leading and lagging indicators will provide a comprehensive view of how well the operational plan is being executed and where improvements can be made.

Step 7: Review and adjust regularly

The business environment is dynamic and as such, your operational plan should be adaptable. Regularly review the plan, comparing actual outcomes with desired outcomes and adjust as necessary to account for changes in the business environment or company goals.

Step 8: Document and communicate

Create an operational plan document, potentially using operational plan examples or an operational plan template for guidance. Ensure that the entire team, from individual team members to the entire organization, is informed and aligned with the plan.

Related: 7 Best Business Plan Software for 2023

Strategic plan vs operational plan: What is the difference?

When running an organization, both strategic and operational planning play pivotal roles in ensuring success. However, each has a distinct purpose, time horizon and scope. Here’s a breakdown of the differences between these two essential business plans:

• Strategic plan : This plan sets the course for the organization’s future. It embodies the long-term vision and mission, detailing the objectives necessary to achieve it. The essence is how everyone, from C-suite executives to individual team members, collaborates towards realizing this vision.
• Operational plan : This is the roadmap for the day-to-day activities of the organization. While the strategic plan looks at the bigger picture, the operational plan hones in on the tactics and execution. It is crafted to support organizational goals with a focus on short-term activities specific to departments or functions.

Time horizon :

• Strategic plan : Long-term in nature, usually spanning three to five years.
• Operational plan : Concentrates on the short-term, with plans laid out yearly, quarterly, or even monthly.

Modification and updates :

• Strategic plan : This evolves over longer intervals, typically three to five years. There might be minor adjustments year over year based on changing business needs and the external business environment.
• Operational plan : Due to its short-term focus, it requires frequent assessments. Plans might be adjusted yearly, quarterly or even monthly to ensure alignment with the strategic objectives and current business environment.

Created by :

• Strategic plan : Crafted by the upper echelons of management – think CEO, CFO and other C-suite members.
• Operational plan : These plans come to life through mid-level management and department heads, ensuring alignment with the broader strategic vision while catering to specific departmental needs.
• Strategic plan : Broad in its outlook, it takes into account external factors like market trends, competition, customer needs and technological innovations.
• Operational plan : This narrows down the focus to the internal workings of the organization. It revolves around technology in use, key performance indicators, budgeting, projects, tasks and the allocation of responsibilities among team members.

As we’ve traversed through the importance of operational planning to various operational plan examples, it becomes evident that having a detailed and efficient operational plan is pivotal. 

From the business-centric to the minimalist approach, every operational plan serves as the backbone, guiding team members and ensuring that day-to-day activities align with the long-term vision and strategic goals.

By knowing what should be included in these plans and how to craft them, businesses can navigate the complexities of their operational environment with greater confidence.

For those looking to refine their planning process or start from scratch, the world of digital tools has made it significantly easier. Venngage offers business plan maker and operational plan templates designed to simplify the process. 

Whether you need to create an operational plan or draft a business strategy, their intuitive platform can guide you every step of the way.

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What Is Operational Planning? How to Write an Operational Plan?

FEB.15, 2024

What Is a Business Operational Plan?

Operational planning converts strategic goals and objectives into tangible, actionable tactics. An operational plan outlines the specific day-to-day activities and tactics required to align with an organization’s broader strategy and vision. An operational roadmap guides how a business will implement its strategy through specific programs, budgets, procedures, and processes.

An operational plan is typically prepared for a 1-3 year timeframe and includes detailed action plans for each department or function. It describes the resources needed, tasks and activities to be done, deadlines, and who is in charge. The short-term execution of the strategic plan in the focus.

Examples of Operational Planning in Management

Some common operational planning examples in management are:

• Production planning
• Inventory management
• Workforce planning
• Facilities management
• Logistics and distribution
• Service operations
• Maintenance planning
• OPS planning
• Contingency planning

The overall operational plan integrates these different functional plans to ensure alignment toward common business objectives. It is updated periodically by an operational planner to keep pace with changing internal and external conditions.

Who Performs Operational Planning?

Operational planning involves collaboration across various levels within an organization:

1. Managers and Department Heads

Role: Managers and department heads play a central role in the plan of operation. Their expertise guides the process, and they ensure that the plan aligns with the overall strategy.

Responsibilities:

• Ensure that operational goals are consistent with the organization’s strategic vision.
• Allocate financial, human, and material resources based on strategic priorities.
• Assign specific responsibilities to team members.
• Track progress and make adjustments as needed.

2. Cross-Functional Teams

Role: Operational planning requires input from different functional areas—finance, marketing, production, logistics, etc.

• Teams collaborate to create a comprehensive plan.
• Each team brings specialized knowledge to the table.
• Ensure that departmental plans align seamlessly across functions.

3. Individual Contributors

Role: While managers and teams drive the process, individual contributors also play a vital role.

• Implement the operational plan on a day-to-day basis.
• Provide valuable feedback based on their frontline experience.
• Adapt to changing circumstances and contribute to continuous improvement.

4. Top Leadership (CEO, Board of Directors)

Role: Although not directly involved in the nitty-gritty of operational planning, top leadership sets the overall tone.

• Define the overarching vision and long-term goals.
• Ensure that operational plans align with the organization’s mission.
• Approve major resource allocations and strategic & operational initiatives .

Strategic Planning vs Operational Planning

LendingTree research revealed that many businesses struggle to survive in the long term. Among private sector businesses in the United States, approximately 20.8% experience failure within the initial year, while 48.4% face challenges within the first five years. The numbers escalate further, with 65.1% encountering difficulties within the initial decade. A significant contributing factor to this elevated failure rate is the absence of efficient operational practices.

Operations are influenced by two essential yet distinct types of organizational planning: strategic planning and operational planning. While they are complementary and interlinked, let’s start with understanding what is strategic planning and operational planning before understanding the key differences:

Strategic Planning

Strategic planning is all about defining the core purpose and vision for an organization. It involves looking ahead 3-5 years to set broad goals and priorities across the business. The aim is to determine the path ahead – where we want to go, what we want to achieve, and how we’ll stay competitive.

Some key questions strategic planning tries to answer:

• What’s our raison d’être as a company – why are we here?
• What’s the dream for our future – where do we envision ourselves in 3-5 years?
• What high-level accomplishments do we want to target over that timeframe?
• How will we maintain an edge over competitors in our industry?

The strategic plan sets the long-term targets and big goals that show what we want to become in the future.

Operational Planning

While strategic planning focuses on the “what,” operational planning focuses on the “how.” Operational plans detail the concrete strategies, initiatives, resources, processes, and actions required over a 1-3 year timeframe to deliver on the goals outlined in the strategic plan. Operational plans answer questions such as:

• How will we organize resources to deliver on strategy?
• What specific actions, projects, tactics, and steps must each department undertake?
• What budgets, systems, processes, and timelines are needed?
• Who will be responsible for each element?

Operational planning deals with the short-term, practical planning and implementation required to turn the strategic vision into reality through day-to-day operations.

The key differences between operational vs. strategic planning are summarized in the table below:

Remember, while strategic planning provides the big picture, operational planning ensures that the organization’s wheels keep turning smoothly. Both are essential for sustained success.

Operational Planning Process

The operational planning process is the sequence of steps that are followed to create, implement, and evaluate an operational plan. Here are the primary steps in operational planning:

Step 1: Develop a Strategic Plan

• Define vision, mission, goals, and objectives
• Identify key stakeholders, resources, risks, and opportunities
• Align with organizational values and culture
• Use tools like SWOT analysis, SMART goals, and balanced scorecard
• Set a time frame of 1-3 years

Step 2: Prioritize Your Goals

• Identify and prioritize the most important and urgent goals for the short-term
• Align them with your strategic plan and make them specific, measurable, achievable, relevant, and time-bound
• Use tools like the Eisenhower matrix, MoSCoW method, or Pareto principle

Step 3: Use Leading Indicators

• Choose measurable factors that indicate progress and performance
• Track and evaluate the effectiveness of strategies and actions
• Examples: customer satisfaction, employee engagement, quality, productivity, revenue, etc.

Step 4: Draw on Your Organization

• Identify people, departments, teams, and processes involved in the execution
• Assign roles and responsibilities, define expectations and standards
• Establish communication and collaboration channels
• Use tools like the RACI matrix, Gantt chart, or resource allocation matrix

Step 5: Communicate Your Plan

• Share the operational plan with stakeholders, employees, customers, and partners
• Explain the purpose, benefits, and challenges of the plan
• Solicit feedback and suggestions, address concerns or issues
• Keep everyone informed and updated on the status and results
• Use tools like newsletters, presentations, meetings, or surveys

Step 6: Monitor and Evaluate

• Use leading indicators and other tools to measure outcomes and impacts
• Compare actual results with expected results, identify gaps or deviations
• Analyze root causes and effects of gaps, determine corrective actions or improvements

Step 7: Review and Revise

• Regularly review the operational plan and assess relevance and alignment with the strategic plan
• Make adjustments or changes as necessary, based on feedback, data, and lessons learned

An operation plan in a business plan covers aspects such as production, facilities, technology, resources, and market requirements. Here are some common components of an operational plan:

• Executive summary – A brief overview of your operational plan and its main points and purpose.
• Operational budget – A financial plan that estimates the income and expenses of your business operations.
• Operational objectives – The specific, measurable, achievable, relevant, and time-bound (SMART) goals that you want to accomplish through your business operations.
• Processes and workflows – The steps and procedures that you and your team will follow to create and deliver your products or services.
• Operational timeline – A schedule that outlines the milestones and deadlines for your operational objectives and projects.

Benefits of Operational Planning

Good operations planning is really important for companies to meet their big picture goals. By thoughtfully designing, syncing up, and managing the everyday work needed to run a business, operations planning gives some key benefits:

• Provides a clear direction and guidance for the team members, and defines their roles and responsibilities.
• Helps to monitor the progress and performance of the team, and to identify and resolve any issues or challenges that may arise.
• Enables the team to adapt to changing circumstances and to respond to new opportunities or threats.
• Improves the communication and collaboration among the team members and other stakeholders.
• Increases the productivity and quality of the work, and enhances customer satisfaction and loyalty.

At OGSCapital, we have a team of expert business plan writers and consultants who can provide operational and strategic planning services . Our high-quality and customized business plans have helped thousands of clients in different industries raise billions of dollars. We can help you create a realistic and achievable operational plan to guide your daily operations and decision-making. We also offer full customization, revisions as needed, and strategic advice for your operational plan. Contact us today to help you take your operations to the next level.

Frequently Asked Questions

Q. What are the disadvantages of operational planning?

Some disadvantages of operational planning are:

• Multi-level dependency , which means that the success of the operational plan relies on the coordination and collaboration of different components of the organization; 
• Human error , which means that mistakes can occur during the execution or evaluation of the operational plan; and 
• Loss of creativity , which means that the operational plan can inhibit innovation and adaptation to changing conditions.

Q. What is a good operational plan?

A good operational plan should be clear and precise that helps in preparing strategies and directs the day-to-day operations and choices of a business or organization. It explains what the business or organization wants to do, how it will do it, what it will need, how it will measure its progress, and what results it expects.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Operational Planning: How to Make an Operational Plan

June 6, 2022 - 10 min read

Having a strategic plan is essential to any company, but it’s not enough. To ensure that the broader organizational goals are within reach, you need an operational plan for day-to-day work. 

Using templates to manage your operation plan can help simplify your complex processes and save you time. You know how a shopping list helps you remember what to buy at the store? Templates are like that for your work. And Wrike has many templates ready to go for different kinds of jobs. 

For example, you can use the retail trade template to see what step comes next when adding something new for customers to buy. Then there’s the business operations template , which helps you and your team keep track of your business plan without getting wires crossed. And when you need to manage bills, you can use the invoice tracking template . All these templates are great tools for keeping an operational plan ticking over.

In this blog post, we’ll explain what an operational plan is, show you how to create one without feeling overwhelmed, and provide you with an example of an operational plan. We’ll also share our prebuilt templates to get you up and running quickly.

What is an operational plan?

An operational plan is a document that outlines the key objectives and goals of an organization and how to reach them.

The document includes short-term or long-term goals in a clear way so that team members know their responsibilities and have a clear understanding of what needs to be done.

Crafting an operational plan keeps teams on track while guiding them in making crucial decisions about the company's long-term strategy.

Operational planning vs strategic planning

Though related to each other, these two planning strategies differ in their focus.

Operational planning is the process of the day-to-day work to execute your strategy. It ensures you have all the resources and staff necessary to get work done efficiently.

On the other hand, strategic planning is about looking ahead into the future, identifying the upcoming pipeline, and figuring out how you can prepare for it.

According to the U.S. Bureau of Labor, nearly 7 million Americans are self-employed, with an additional 10 million employed by small businesses. 

If you're working at a large corporation, chances are your company will have some form of strategic goals in place. However, if you're one of the millions who work remotely and independently, your success will rely on operational planning instead.

What are the key elements of an operational plan?

The success of operational planning largely depends on setting realistic expectations for all teams.

Here are the key elements of a functional operational plan:

• Clearly define the ultimate vision or objective for the plan
• Review and break down the smaller goals for the operating budget, team, and resources required to put the plan into action
• Assign budgets, team members, key stakeholders, and resources
• Monitor progress with consistent reports
• Refine the operational plan and be ready to pivot if needed

Ensure all teams understand the parameters of success. Doing this shows how their work contributes to wider company goals and ensures better decision-making for the business operation.

How to create an operational planning process

Think of an operational plan as a key component in a team puzzle. It provides employees with a manual on how to operate the company.

It should be created in tandem with other foundational documents like an organizational mission statement, vision document, or business strategy. Daily, it can help answer questions such as:

• Who should be working on what?
• How can we mitigate those risks?
• How will resources be assigned for different tasks?
• Are there any internal and external risks facing the business?

To create a successful operational plan, it's important to define goals clearly. Here are several steps that will help you develop a functional operating plan:

Start with the strategic plan

Before defining an operational goal, make sure your strategic objectives are in place and relevant.

Prioritize the most critical activities first

Once these goals have been decided on, prioritize the most critical activities required to achieve these aims.

Stop diluting team efforts and let them focus on the most important goals first. Doing this means everyone works on a smaller set of tasks, instead of spreading themselves thin in multiple areas. It also helps in optimizing available resources.

Use predictive indicators

For a robust operational plan, consider using key performance metrics or indicators that can help you determine project progress and lend visibility to team activities. 

While lagging indicators look backward, leading indicators look to the future. Think of the plan as a car — the rear-view mirror would be a lagging indicator, while the windshield would be the leading indicator.

A leading indicator could be a new product, higher customer satisfaction levels, or new markets. Examples of lagging indicators include the number of people who attended an event or the monthly operating expenses for specific departments. 

Instead of lagging indicators, use leading indicators. Lagging metrics will show that your efforts are falling short only after you execute the operations.

Leading KPIs include predictive measures that allow early identification of problems before they become critical and impact business performance negatively.

Get team buy-in

The key to defining appropriate KPIs is involving the whole team in the process. Meet to discuss the business goals and figure out what measurements are right for the team instead of working independently or outsourcing them.

Ensure consistent communication

Communication is key. By understanding your company's metrics and what they mean, you'll be able to work together more effectively with colleagues to reach common goals.

Operational plan example

Let’s say that a company plans to increase production volume by 50% at the end of a fiscal year.

When the company goal is clear, the team will make a strategic plan with three main components: marketing, sales, and operations.

This can be further broken down into an operational plan, which will assign resources, teams, budgets, and timelines for different departments such as manufacturing, sourcing, accounts, finance, and logistics to achieve the increase in production. Such a plan should include a financial summary and financial projections as well.

Operational plan template

Think about the example above. The goals and parties involved are clear as part of the operational plan. At the same time, to remain on track, the plan requires continuous analysis and reviews. An operational plan template can be extremely helpful to achieve that.

An operational template can be a simple document that is reused for different plans by the same organization. However, it is also possible and extremely helpful to make use of project management software tools to create one.

For instance, Gantt charts can serve exactly that purpose. Using a Gantt chart as an operational plan template, it is possible to create and manage plans, track changes and edit project-related activities in real time. The chart allows clear visibility for timelines, tasks, responsibilities, and team members.

Operational planning advantages and disadvantages

Most businesses utilize an operational plan to keep track of their daily tasks. 

The plan outlines the day-to-day activities for running the organization — teams, managers, and employees are then able to visualize their contribution, which is crucial for reaching company goals.

But every process has two sides. Let’s review the operational planning advantages and disadvantages in more detail.

Operational planning advantages

Clarifies organizational goals.

An operational plan helps managers and department heads define their daily tasks, responsibilities, and activities in detail.

It also illustrates how individual team members contribute to the overall company or department goals. Without a clearly defined plan, managers and employees have no way to measure their daily tasks against predefined outcomes.

Boosts team productivity

Business owners are always looking for ways to increase productivity, which in turn translates into higher profits. One of the best and easiest ways to boost efficiency is through an operational plan.

Employees are more productive when they know their daily objectives and responsibilities. Conversely, if they're unsure of what is required of them, chances are their productivity will suffer. 

An operational plan provides this vital information to employees in each department and across the company as a whole.

Enhance organizational profitability

Having a plan helps in keeping projects and teams on track.

When operations are managed properly, teams are able to consistently increase revenue and develop new products.

Innovation pays off. A BCG survey points out that 60% of companies that are committed to innovation report steadily increasing revenues year after year. With an operational plan in place, teams are able to innovate better and faster.

Improves competitive advantages

Competitive advantages are made up of multiple levels and components.

Coordinating the different parts with an operational plan will make your workflows run more smoothly. This allows you to deliver high-quality deliverables on time, creating an outstanding customer experience and keeping you ahead of the competition.

Operational planning disadvantages

Possibility of human error.

Human error is a common problem in manufacturing that can often occur when transitioning from production to sale.

Operations management teams will need to coordinate effectively with diverse cross-functional teams such as finance, accounting, engineering, and human resources. In doing so, each team will have a clear understanding of the end goals of each department.

Interdependency amongst parts

One of the main disadvantages of implementing an operations planning process is that its success depends on coordination across parts.

Plans end up failing due to one part not working, which can have an adverse impact on the subsequent process. Disruptions in one process can end up affecting the entire process, making the entire operational plan useless.

Using Wrike for operational planning

Boost your organization’s efficiency by ensuring every project starts off on the right foot. Wrike’s award-winning project management tools can help you create and execute operational plans with various prebuilt templates . 

Establish your plan, monitor progress, and be prepared to pivot if necessary. With Wrike, you can share real-time data, making all milestones crystal clear for your team and helping them stay updated and on track.

These templates keep processes running smoothly so you can focus on doing your work well. Want to try them out? They’re just a click away.  

Choose the most suitable template and start a free two-week trial of Wrike today!

Yuvika Iyer

Yuvika is a freelance writer who specializes in recruitment and resume writing.

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Work Skills You Need on Your Resume in 2021

Navigating the highly competitive job market can be brutal. In a recent Jobvite survey, nearly three in four respondents said they believe finding a job has become much harder following the pandemic.  It’s clearer now more than ever how important it is for your resume to stand out. In fact, nearly 24% of hiring managers spend 30 seconds or less reviewing a resume to determine whether a candidate is qualified for a position or not. You quite literally have seconds to catch their attention before your resume ends up in the recycling bin with the rest of the candidates that didn’t make the cut. So, how exactly do you set yourself apart and stand out from the crowd? Highlighting your work skills on your resume is the best place to start. We did some digging and pulled together some work skills examples in various categories to inspire you to revitalize your resume.  Important social work skills for the workplace What are social work skills? Social skills, otherwise known as interpersonal skills, are essential in helping us communicate with one another in the workplace. These skills allow us to build relationships, interact, and communicate with those around us in a meaningful and effective way. This includes verbal and nonverbal cues.  Social work skills are essential in every job. Whether you work on a team, are in a client-facing role, or are an individual contributor reporting to a direct manager, solid social skills will help you succeed in your position.  Let’s take a look at some of the most important social work skills for the workplace:  1. Empathy One of the best ways to interact well with others is to put yourself in their shoes and understand how they feel. Empathetic people can understand how others are feeling and can identify with those feelings in some way.  Having empathy is a vital trait, especially for those who hold leadership positions. Being empathetic isn’t something you can force, and it doesn’t happen overnight if it doesn’t come naturally to you. This skill takes a conscious effort to build and will help you forge and maintain stronger workplace relationships. 2. Active listening Have you ever been in the middle of a conversation with a colleague and felt like they weren’t paying attention to a single word you were saying? Or have you ever been chatting with a coworker and felt like they heard you and gave you their utmost attention? The latter is known as active listening.  Active listening involves giving someone your full, undivided attention and it allows you to build trust and strong relationships with your colleagues and clients. Active listening requires practice, but it is a skill that can be acquired with proper training and effort. 3. Emotional intelligence At a high level, emotional intelligence refers to recognizing and being aware of the emotions of both yourself and other people. Those with high emotional intelligence are known for being self-aware and can practice self-regulation, particularly in stressful and potentially overwhelming situations at work. Emotional intelligence is critical in the workplace because it contributes to strong, long-term relationships and can help you manage and appropriately tailor your reactions.  4. Conflict resolution According to recent research, 65% of workers experienced conflict with another coworker. Conflict is inevitable in the workplace, which means developing a solid set of conflict resolution skills can help you manage and navigate these situations efficiently.  Conflict resolution is the ability to address the root cause of disagreements and devise a solution that works for all parties involved. You can use various techniques to help resolve conflicts, so it’s essential to learn and understand how to address different disputes. 5. Written communication Social skills refer to how we communicate with one another, which means written skills are a must. Some forms of written communication include emails, instant messages, documents, reports, slide decks, and your resume. Using appropriate grammar, proper spelling, and following formatting guidelines will allow you to communicate effectively with others. 6. Nonverbal communication When it comes to communication, it’s easy to think about what we are saying, but we don’t always focus on how we are saying it. Nonverbal skills can dramatically impact the way your message is received.  Your body language, eye contact, facial expressions, and tone can completely change the message you are trying to deliver to your coworkers. It’s important to be aware of these subtle cues so that you can make sure your message isn’t misconstrued or misinterpreted.  Work-related skills for virtual environments You might not be working with your colleagues side-by-side in the same office. In addition to the skills we discussed above, remote work requires some different skills and disciplines.  Below are a few competencies that you’ll definitely want to have when collaborating in virtual work environments:  Self-motivation: There’s a big difference between in-person office environments and virtual workplace settings. At the office, your manager can simply stop by your desk or quickly check in to see how things are going. While your supervisor can technically do the same via email or instant message, you ultimately don’t have anyone looking over your shoulder 24/7 at your home office (unless you have pets, children, or spouses nearby!). That means self-motivation and knowing how to hold yourself accountable to get your work done are vital to helping you thrive in a virtual role. Adaptability: Adaptability is beneficial in any setting, but it’s a particularly beneficial skill in virtual environments. Whether you’re working with a distributed team and constantly trying to navigate time zones or your presentation gets interrupted due to an unreliable internet connection, adaptability is an important skill to help you navigate the unexpected and ever-changing conditions you may find yourself running up against. Digital and technical knowledge: In virtual environments, employees work remotely and generally rely on several tools to collaborate and tackle their to-do lists. Between project management software, instant messaging, video conferencing, document sharing, and email, there are many different technologies to navigate daily. If you’re working in a virtual environment, it’s essential to feel comfortable using these platforms if you want to keep up with the pace of your work. It’s also worth mentioning that, while you still may be able to reach the IT help desk, you may not receive assistance as quickly as you would in an office setting. That means you might have to do some troubleshooting and problem-solving on your own. What teamwork skills are important for 2021? Teamwork makes the dream work, right?  Teamwork skills are a subset of skills that enable us to work well with groups of people (meaning, our teams) to achieve a shared goal or outcome. In 2021 and beyond, as we see a shift toward hybrid work models, honing in on your teamwork skills can help you land your dream gig. Here are the teamwork skills that are important to develop for 2021 and beyond: 1. Reliability Being reliable is arguably the most crucial teamwork skill. Those who are reliable can be depended on and trusted to do their part time and time again. They show a certain level of commitment to their work and colleagues, meet deadlines (or even get work in early), and follow through on any action or task they say they will do.  You want to be a reliable teammate so your colleagues and your employer will have faith in you. And the more trustworthy you are, the more responsibility you will be trusted with over time, which may boost your career growth in the long run. It’s even more important to showcase your reliability in a virtual workplace environment through clear and frequent communication. 2. Accountability Accountability goes hand-in-hand with reliability. But beyond being reliable, accountability is all about taking responsibility for one’s work — even when that includes mistakes or failures.  There’s no room for the blame game or pointing fingers on teams that work well with one another, which means you have to hold yourself accountable and take fault when necessary. Your teammates will likely think more of you if you’re willing to admit you’re wrong, as opposed to constantly shifting blame or pointing fingers when issues arise. 3. Respectfulness A little bit of respect goes a long way, especially at work. According to Indeed, respectfulness in the workplace reduces stress, increases productivity and collaboration, improves employee satisfaction, and creates a fair environment. You need to respect your team members, manager, and clients to do your best work together.  Acts of respect include acknowledging others and calling them by name, encouraging and exchanging opinions and ideas without judgment, giving credit where it’s due, and listening to and understanding your teammates. 4. Collaboration There is no successful teamwork without collaboration. Collaboration is working together with one or more people on a project or toward a shared goal.  When employees can work together and collaborate successfully, they can share ideas and come up with practical solutions to complex problems. Brainstorming, open discussions, workshops, and knowledge sharing sessions are all examples of collaboration that lead to great teamwork.  5. Persuasion Have you ever worked with a teammate who insists on working their way, even if the rest of the team agrees to pursue another route? How do you keep making progress on your project or goal if one team member isn’t on the same page? That’s where your skills of persuasion come in handy.  Sometimes you might have to persuade a team member to see another point of view and change their mind to benefit the rest of the group. But persuasive skills are more than just getting someone to change their mind and see your perspective — it’s about doing so in an empathetic and respectful way in order to maintain a healthy working relationship. 6. Constructive feedback for improvement You should be able to offer your teammate constructive feedback to help them improve and vice versa. Exchanging feedback not only benefits individuals and the team as a whole but also adds value to your organization by creating an opportunity for constant growth.  Giving feedback requires offering suggestions for improvement in a positive way, while receiving feedback requires listening with an open mind and a willingness to change.  Work skills that work on any resume Sure, there are specialized skills for different roles and industries. Engineers add their programming skills to their resume, project managers add project management certifications and relevant skills, and HR professionals add the performance management and HRIS systems they’ve previously used. While there are specialized skills you’ll want to emphasize on your resume based on your industry and role (and trust us, those are important), there are also some work skills that are relevant on any resume. These include:  Creativity: Creativity is an essential component of innovation and complex problem-solving. In its most basic form, creativity requires thinking about a problem or task differently and using your imagination to form and test new ideas. Problem-solving: All employers value problem-solving abilities because they want to hire people who can break down problems and develop effective solutions. To showcase your problem-solving skills, you might possess a range of qualities such as analysis, evaluation, decision-making, and communication. Time management: No employer wants to hire someone who doesn’t make good use of their time and will have a hard time getting their work done. Your future employer wants to know that you’ll be able to meet deadlines, effectively use your workday to get tasks accomplished, and handle your workload without a lot of babysitting. Examples of specific time management responsibilities include goal setting, prioritizing tasks, meeting deadlines, and minimizing or eliminating distractions for optimal focus. Leadership: Showcasing how you’ve demonstrated leadership in your previous roles can demonstrate to your future potential employer what type of employee you are. Being an effective leader can increase your advancement opportunities within your organization. Use specific examples of successful leadership on your resume for the most significant impact.  So how do you showcase these skills on your resume? Now that you know what work skills for resumes employers want to see, you’re bound to have this question: Where do you put them? Keep in mind that the goal of your resume is to prove that you’re a qualified, no-brainer fit for the role you’re applying for. That’s why your smartest move is to tailor your resume to a specific job. Take a fine-tooth comb to the job description and identify words or skills that are repeated or emphasized. Those are traits that you should be incorporating in your own resume (provided you honestly possess them, of course). The most important skills should go as close to the top of your document as possible, because remember, hiring managers are only skimming for a few seconds. As for where you can work these skills in, you have a number of options, including:  Your professional summary at the top of your document A dedicated key skills section where you can bullet out your most relevant abilities Your past positions, where you can demonstrate how you applied your skills in previous jobs Finally, remember that many of your work skills and social work skills — from communication and time management to problem-solving and active listening — will be on display throughout the hiring process and your interviews.  So, it should go without saying, but show up on time, respond to messages promptly and respectfully, and treat everybody respectfully. After all, when it comes to your work skills, employers want you to show — and not just tell.

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A quote attributed to baseball great Yogi Berra should be top of mind for entrepreneurs interested in expanding their business: “If you don't know where you are going, you might wind up someplace else.” Do you know where your business is headed and how you’ll get there?

One way to reach future long and short term goals is to have a detailed strategic plan, and one important element to include in your strategic plan is the operational plan.

What is an operational plan?

An operational plan outlines the day-to-day basis of a department’s work. It establishes the daily operations of each department and aligns these operations with the business goals of the whole company.

When you take the steps to create an operational plan for your company, you should ensure that it addresses the below concerns:

• The delegation of tasks and strategic work shared among departments
• The delegation of the above to individual positions within a department
• Recurring deadlines for each task and strategy
• Costs anticipated for each task and strategy

Why is an operational plan important?

A thorough operational plan ensures that all your employees know their daily work requirements. It also tells your employees how to best complete their work within a specified timeframe. With these duties appropriately delegated and mapped out, your company can more easily achieve its business goals.

How do operational plans differ from strategic plans?

In some cases, operational plans and strategic plans are one and the same. In other cases, strategic plans are broader than operational plans. That’s because strategic objectives are long-term business goals, whereas operational objectives are milestones regarding the systems through which your company achieves its strategic goals. In either case, writing an operational plan is a key first step for developing a fruitful small business strategy.

Steps for how to write an operational plan

This section will help you determine what needs to be done to reach your vision. To get started, keep the SMART guidelines below in mind. Your plan should be:

M easurable

A ttainable

When completed, your plan should clearly outline the day-to-day operations required to run your business successfully. The steps for how to write an operational plan are:

1. Focus on important goals

It can be tough for a busy entrepreneur to narrow down business goals . Prioritize the ones that are attainable and will help strengthen your business.

For example, if you own a bakery, you might set a reasonable goal of increasing business 20% by introducing new and creative menu items. An unattainable goal might be to relocate to an expensive high-rent neighborhood without a plan to increase profits and cover the higher expenses.

Lofty goals are great but you don’t want to cause frustration if they’re just not realistic. Create goals that can be reached with your current employees and available resources.

2. Set KPIs

Put key performance indicators (KPIs) in place to measure your success. KPIs can be financial, like increasing your net profit, or non-financial like increasing website traffic or improving customer service quality.

While there are a large range of KPIs you can measure, knowing where to focus your attention when evaluating your business can help you be more effective and use your time wisely. Small Business Trends has an article to help you choose the KPIs you should measure: 14 Key Performance Indicators That Matter.

3. Communicate and discuss KPIs with employees

Research from Harvard Business School found that 95% of a typical workforce doesn't understand the strategy and goals of the business they work for. How can employees perform at a high level if they don’t know this important information? You want your team to make the right decisions based on your operational plan to help you meet your objectives.

There are several ways to engage with your employees . You can hold a good old fashioned brainstorming session when you’re putting your operational plan together. You can also hold regular company-wide meetings to discuss where the company is headed.

The SmartBiz Loans team is updated on goals and where the company stands during a monthly OGSM meeting. OGSM stands for objectives, goals, strategies and measures. Management presents their results and employees are encouraged to ask questions and make comments.

4. Discuss the production process

Here’s where you outline how your product is produced or the resources needed to implement your services. The production process section of your operational plan may include:

• Necessary resources like computers, phone systems, and software
• Required equipment like machinery used for production of your product or service
• Cash and cash equivalents
• Special requirements you might need such as zoning permits, drainage, ventilation, etc.
• Materials you need to produce your product and the suppliers you’ll use to secure them.

5. Address costs

What funds are needed for your team to successfully complete their jobs and meet KPIs? Are there ways to reduce costs and still meet goals? Don’t forget to add in the costs of payroll taxes and benefits, equipment repair or replacement, and legal or other fees.

6. Set a budget?

Describe in detail your operating process and budget . Here’s where you can discuss outside funding and explore how much it would take for working capital, equipment, inventory, and other important areas. Speaking of working capital:

7. Develop a hiring plan

Even the most straightforward operational plan requires a trustworthy team to execute. That’s why your operational plan should explicitly outline your hiring practices. It should answer the following questions:

• Which positions does my business need, and by when will it need these roles filled?
• What does the ideal candidate for each position look like?
• How will my company find its new hires?
• What salary will I pay my employees?
• What benefits will I give my employees?

As mentioned earlier, you should also discuss your company’s goals and KPIs with your entire team. Once you’ve built a reliable team, you should also figure out when and where you’ll need your employees to work – and an operational plan is the perfect place to set these requirements.

8. Establish your work hours

Can you run your operation with employees working a typical 9 to 5 schedule during a 40 hour work week? Are there tasks that need to be completed in off hours? Let employees know when they are expected to work and if flexible hours are available. Remote work can help you retain employees as well.

9. Set employee location requirements

Do employees need to work in an office or onsite? Can work be performed remotely? Again, your employees need to know your expectations and how it fits in with the overall operational plan goals. Include the costs of rent and required insurance . If you run a home-based business , outline the tax breaks you might qualify for.

10. Address possible risk

The process of identifying risks, assessing those risks, and developing strategies to manage risks is known as risk management. Include a risk management plan within your operational plan. Reduce risks where possible and prepare contingency plans where necessary.

11. Set quality control measures

You don’t have to have a quality control team. Have one employee own quality control from beginning to end with a system of checks and balances in place.

12. Devise project management plans

To better control your products’ quality and optimize your production process, project management plans may prove helpful. Although no two projects are quite the same, adding loose project management plan templates or workflows to your operational plan can reduce operational inefficiencies that hinder you from achieving your goals.

For example, let’s say your company’s main source of revenue is light bulb production and sales. If you regularly develop new lights to sell, you’ll need a set of reliable constraints to work within every time you roll out a new product. These constraints can include product goals, production budget and timeline, and internal and external deliverables.

With a sturdy project management plan in place, you increase the likelihood of consistent quality, revenue, and new product releases. As such, successfully achieving your business goals may be easier.

13. Create timeline and milestones

Set project deadlines so your team is clear about their responsibilities and objectives. Clearly outline a timeline for meeting important milestones. Employee input can be valuable here. It’s good to know the bandwidth each team member has when working on deadlines.

Final Thoughts

SmartBiz Loans CEO Evan Singer has 20-plus years of business experience. He offers this advice to entrepreneurs in every stage of business planning:

“Remember that your plan doesn’t have to be perfect to achieve your goals. And possibly most importantly, don’t hesitate to ask for help. A financial professional or even members of your team can offer direction and advice if you’re feeling stuck.”

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Operational Plan: What is it & How to Create it? (Free Template Included)

Want to create an operational plan to ensure smooth implementation of daily activities of your business? No worries, we have got you covered. Read on…

Always plan ahead. It wasn’t raining when Noah built the Ark. ~  Richard Cushing

Running a business is quite similar to sailing a ship! You have to make sure that every aspect is working in the correct motion for you to stay afloat. Can you sail if you have no clear vision of where you’re headed, your destination, or how you will get there?

To answer these questions, you might need to create an intuitive  operational plan  for your business which would work as a lighthouse to guide you through the way and highlight any upcoming risks that could arise in the near future.

An operational plan lucidly describes the business vision and mission! This document is coherently chalked out for the day-to-day running of any business and outlines the operations related to finance, recruitment, marketing, and other resources required for a successful company.

However, crafting such documents can be time-consuming! Therefore, we decided to create a free plug-and-play operational plan template for your team! But before we hop onto our awesome template, let us first understand what exactly is an operation plan and what to include in such documents.

Read on…

What is an Operational Plan? (Definition)

An operational plan is a strategic document that outlines all the planning related to daily operations and processes required for running a successful business. It entails all the activities that different teams or departments like recruitment, marketing, and finance, need to perform to achieve company goals and objectives.

The main objective of a well-defined operational plan ensures each manager and employee knows their specific responsibilities, as well as how they should execute them within a definite timeline.

Why is an Operational Plan Important?

The whole point of operational planning is to see the effect of your operations on the business’s working in real-time, so you know exactly when to execute your major strategies.

An operational plan helps you identify areas that are not generating enough revenue or are causing losses, and then assists you with formulating the necessary changes. This document also plays a crucial role in keeping all key stakeholders, management, and board members on the same page.

Everyone needs to be aligned with the company’s mission, goals, risks, hiring needs, financial projections, key performance indicators (KPIs), etc. An operational plan will help every department focus on their contribution to the larger vision by bringing all leading members together under one roof!

Read more:  Operational Efficiency: Definition, Importance & Ways to Improve it!

How to Create an Operational Plan? Follow these Steps!

Step 1. create a title page.

While writing an operational plan, the first thing to do is to create a title page for it. This provides all the information about the topic at a single glance.

Here, you will include the title of your document, the registered name of your company, the designation, and the name of the person who creates the document.

Step 2. Write an Executive Summary

An executive summary refers to a section that deals with what a topic is all about in a brief manner. This is to ensure that your readers have a rough idea of the content and encourage them to read on.

In this section, you emphasize the gist of your overall plan and provide a concise explanation of all the important sections in a few sentences.

Step 3. Define Mission and Objectives

Define your organization’s mission and determine your company’s goals and objectives.

Ask yourself what the company is trying to accomplish over the next year and what the major goals and milestones are that support the need for this operational plan.

Describe the company mission, vision, and the reasons this plan is important. Have there been changes in the competitive landscape? Have you raised a round of capital?

Doing this will help you evaluate and measure your company’s performance against your missions and objectives and see how well you are doing in terms of achieving or meeting your goals.

Step 4. Provide Key Performance Indicators

In this section, you can break down each part of your business by evaluating all the major KPIs and metrics involved in measuring your results.

Provide proof of the importance of the operational plan by sharing key numbers that support the ideas in this document.

Step 5. Include a Financial Summary

The next section to be included in your operational plan is the financial summary. Here, you can give an overview of all the projects that will be included during the operational plan and include its financial breakdown. Make sure that there is enough capital to execute this plan.

Step 6. Create a Hiring Plan

Your company will have different hiring needs for each department, therefore, it is essential that you create a hiring plan to decide how many team members will be hired across different departments on a monthly/quarterly basis.

Step 7. Determine the Key Assumptions & Risks

No plan is ever free from risks and problems, so it’s important that you determine the risks to the business and address how the company could work towards mitigating those risks.

This will help your employees be prepared for any possible and potential risks and problems that may arise over the course of their projects.

Step 8. Include the Next Steps

Now that you have included all the major sections, it becomes crucial that you mention what’s going to happen next. Share the next steps, which could include the approval process, updates and reporting time frames, etc.

Step 9. Proofread

The last and final step is to proofread your document and ensure that all the major points are intact and the message is properly conveyed.

Check for spelling errors, grammatical mistakes, typos, or poorly constructed sentences. Make a colleague or another person go through your proposal to double-check everything.

Read more:   Standard Operating Procedures (SOP): What, Types, and How to Write?

Key Benefits of Creating Your Operational Plan Documentation on Bit.ai

To create an effective operational plan, you need a proficient tool that can help you create, share, and collaborate with stakeholders and work efficiently. This is where Bit comes in!

Bit serves as a central hub where collaborators, content, and communications can be accessed in one all-inclusive document. Managers can use Bit to create an operational plan document, collaborate with the team in real-time, and store all product assets in one place for easy and fast access.

Whether your team is creating the operational plan documents, project documentation, status report, release notes , roadmap, project charter , product requirements, API documentation, product launch marketing documents, pitch decks, business plan, SWOT analysis, competitive research, project management plan, etc, they can easily add spreadsheets, Slideshares, Google Slides, YouTube videos, PDFs, maps, charts, graphs, and more to your documents and make them visually stunning.

Organization of information:   Organizational information is often scattered in cloud storage apps, emails, Slack channels, and more. Bit brings all your information in one place by allowing you to organize information in Workspaces and folders. Bring all your documents, media files, and other important company data in one place.

Brand consistency: Focus on the content and let Bit help you with the design and formatting. Bit documents are completely responsive and look great on all devices. With amazing templates and themes, Bit docs provide you with the type of brand and design consistency which is unheard of in the documentation industry

Smart search:  Bit has very robust search functionality that allows anyone to search and find any files, images, documents, etc quickly and easily across all of their workspaces. Users can search their digital assets using keywords, titles, descriptions, or tags. They can even search for files based on their source. (i.e., YouTube).

Media Integrations:  Companies use an average of 34 SaaS apps! No wonder why most of our time is spent hopping from one app to the next, looking for information. This is why Bit.ai integrates with over 100+ popular applications (YouTube, Typeform, LucidChart, Spotify, Google Drive, etc) to help teams weave information in their documents beyond just text and images.

Recommended power links and files you can add to your operational plan template:

• Google Sheets, OneDrive Excel, Airtable
• Social Media posts
• YouTube, Vimeo
• Draw.io, Lucidcharts
• Sketchfab, Figma, Marvel
• PDFs, PowerPoint in Google Drive/OneDrive

Sharing : Bit documents can be shared in a live state meaning that all changes that you make to the document will update in real-time. If you are sharing your documents with clients, they will always get your most up-to-date changes. You can even embed Bit documents on any website or blog.

Tons of other features:  Bit has a plethora of amazing features like document tracking, cloud-upload, templates, and themes, document locking, document expiration, and much more, making it a well-rounded documentation tool.

Bit provides a common workplace for project members to collaborate, document, share their knowledge, brainstorm ideas, store digital assets, and innovate together. The best part is that this knowledge is safely secured in your workspaces and can be shared (or kept private) with anyone in your organization or the public!

Here are some of the man benefits of using Bit:

• Collaborate in real-time
• Interlink operational plan documents and other documents
• Create fully responsive documents
• Create private operational plans only visible to yourself or your team
• Track engagement on shared operational plans with consultants, partners, etc.

Read more:  Business Development Plan: What Is It And How To Create A Perfect One?

• Operational Plan Template

To make the process of creating your operational plan documentation easier, we have created a ready-made operational plan template for you! Check it out below:

How to Use the Operational Plan Template with Bit

The process of creating an operational plan on Bit is insanely easy! Just follow these four simple steps to create your document quickly:

Step 1: Create a Bit Account

Go the home page of  Bit.ai  and click on Get Started for Free or Sign Up to get started. Enter your  email address  to sign up. Once in, you can create your personal profile.

Step 2: Create a Workspace

Workspaces are where the work gets done. Click on the  ‘Create Workspace’  button on the right. A popup will show up prompting you to add a name for your new workspace.  

You can create a workspace around a team, department, large project, client, partner, etc. Inside each workspace, you can create an unlimited amount of Bit documents and access your content library (storage area for all of your digital assets – web links, files, cloud files, rich embeds, etc.).

Step 3: Add Team Members

Bit allows your team members to collaborate in real-time and get work done. Collaboration starts at the workspace level.

You create private workspaces by default. However, you can invite others to join you inside of a workspace and collaborate together with the knowledge, projects, documents, and content inside of the workspace.

Step 4: Create Your Desired Document

Once you are in the workspace, click on the ‘ Create New’  button. Select  ‘From Template’  in the dropdown. A pop up will display allowing you to select a template from the gallery.

In the search box on the top left corner, you can search for an “operational plan template”. Once your desired template pops up, click on it and click on the  “Use Template ” button on the bottom right corner.

That’s it! Your document is ready for use!

Few more templates you might be interested in:

• SWOT Analysis Template
• Transition Plan Template
• Scope of Work Template
• Business Plan Template
• Status Report Template
• Competitor Research Template
• Training Manual Template
• Project Proposal Template
• Company Fact Sheet
• Executive Summary Template
• Pitch Deck Template

🎥Watch this video to learn more👇

Over to You!

Operational plans bring accountability into your everyday tasks. They help you analyze the performance of your business, goals, strategies and identify the resources required to achieve those targets. These documents are a great way of managing other performance measures too like team efficacy, staff optimization, or the number of employees achieving beyond their targets.

Bit is a great tool to manage all essential resources associated with creating an operations plan. It brings all stakeholders under one roof for the smooth execution of the plan. If you need any help with the operational plan template or want to know how Bit can help your business, let us know by tweeting us @bit_docs. Cheers!

Further reads: 

How to Write an Operations Manual?

How to Create a Killer Sales Plan Document?

How to Create a Product Plan the Right Way?

What is an Implementation Plan & How to Create One?

How to Create a Strategic Process Improvement Plan?

How to Create a Procurement Management Plan: Step by Step Guide

How To Make A Full Proof Business Plan?

How To Create a Partnership Marketing Plan?

How to Create a Clear Transition Plan for your Business?

Scope of Work: What is it & How to Create it? (Template Included)

Project Charter: What is it & How to Write it Perfectly? (Template Included)

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About Bit.ai

Bit.ai is the essential next-gen workplace and document collaboration platform. that helps teams share knowledge by connecting any type of digital content. With this intuitive, cloud-based solution, anyone can work visually and collaborate in real-time while creating internal notes, team projects, knowledge bases, client-facing content, and more.

The smartest online Google Docs and Word alternative, Bit.ai is used in over 100 countries by professionals everywhere, from IT teams creating internal documentation and knowledge bases, to sales and marketing teams sharing client materials and client portals.

👉👉Click Here to Check out Bit.ai.

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Operational planning: 5 steps to create a better business operational plan

Learn how to conduct operational planning to enhance collaboration, streamline workflows, and unlock peak productivity in all your company’s teams.

Webflow Enterprise gives your teams the power to build, ship, and manage sites collaboratively at scale.

Operational planning enhances collaboration and streamlines workflows to unlock peak efficiency.

Transforming a strategic vision into business success demands meticulous planning. It requires navigating unexpected obstacles, coordinating team activities with long-term goals, and implementing practical steps to realize organizational objectives.

Organizational planning plays a pivotal role in this context by translating high-level strategies into actionable day-to-day tasks.

But an operational plan is more than a structured to-do list — it’s a comprehensive framework that outlines roles, responsibilities, and timelines. By breaking down grand strategies into executable actions, operational planning ensures cohesive teamwork and transforms ambiguous business strategies into achievable realities.

What’s operational planning?

Operational planning is how companies organize day-to-day tasks to align with broader strategic goals. It’s a road map guiding teams through operational decisions about daily operations, ensuring every task contributes to the company’s long-term and high-level objectives. This typically involves setting short-term objectives, defining key activities, and establishing clear timelines.

In practice, operational planning often blends traditional and innovative methods to maximize efficiency. Conventional strategies like Gantt charts and flowcharts help leaders visualize data , tasks, and timelines to make complex projects more manageable. And digital tools like enterprise project management software introduce automation, real-time collaboration, and data analytics into the mix. These platforms enable agile plan adjustments and offer insights through predictive analytics.

By integrating these mixed methodologies, operational planning helps enterprises build a system that’s efficient and responsive to evolving business needs. It bridges the gap between meticulous organization and the agility needed in a fast-paced business environment.

Benefits of operational planning

Operational planning offers a structured approach to decision-making, but its advantages extend beyond planning. Here’s why it’s a crucial tool for achieving organizational goals.

Clarifies goals

Operational planning turns abstract ideas into concrete objectives. It encourages setting explicit goals with definitive timelines. This clarity benefits leadership and the entire team, ensuring everyone understands what needs doing, who’s doing it, and by when.

Enhances productivity

An operational plan enhances productivity by establishing timelines, outlining objectives, and allocating resources. This structure helps team members prioritize their work and manage their time efficiently because they have clear deadlines to guide them.

By defining precise objectives, the plan ensures every team member understands their specific tasks and expected outcomes, preventing unnecessary work and deviations from the plan. And knowing what resources are available helps team members prepare realistically for their taskwork.

Improves efficiency

A well-crafted operational plan boosts efficiency by optimizing workflows and streamlining organizational processes . By mapping out immediate and long-term objectives, the plan establishes a clear blueprint for task execution. As team members better understand their roles, task sequence, and the rationale behind each, they can execute them more seamlessly. This clarity and structure are also invaluable for onboarding new team members and allow them to integrate and understand the workflow with less friction.

Strategic planning vs. operational planning

Both plan types are distinct yet essential components of an organization’s overall planning process. Let’s break down the primary differences:

• A strategic plan defines your company’s “what,” outlines your business’s direction, and sets broad, long-term objectives. It’s a high-level overview that articulates your mission statement, establishes key business objectives, and outlines strategies for achieving them. This plan typically spans several years into the future and aligns the company’s efforts with its overarching vision.
• An operational plan focuses on the “how” by detailing how to execute the strategies and goals laid out in the strategic plan. This is where you get into the specifics — setting milestones, crafting a detailed road map, and establishing short-term, incremental goals that steer your company toward achieving strategic objectives. And at this point, you’ll focus on more immediate factors, like dealing with daily management and task implementation, that are necessary to achieve strategic organizational goals.

Types of operational plans

Departmental goals and needs vary significantly, and tailored operational plans ensure you optimally manage each area. While a sales department might need a plan focused on customer engagement and retention, an IT department might emphasize technology upgrades and cybersecurity . Combining various plan types — like a couple of those that follow — ensures optimal management and effectiveness in each area, aligning departmental activities with broader objectives.

Project operation plans

Project operation plans are indispensable documents for breaking projects into actionable milestones and assigning teams to relevant tasks. A well-developed project plan organizes tasks and anticipates resource requirements such as personnel, infrastructure, and time. By identifying these requirements early on, project operation plans provide planning foresight that helps avoid resource shortages and last-minute scrambles to ensure projects progress smoothly and stay on track.

Say you’re designing a website . Your project operation plan will outline key steps, such as user research , wireframing , user testing , and launch. Each step would have assigned teams, deadlines, and specific objectives, like establishing focus groups by a certain date and finalizing prototypes. The project manager would monitor progress to ensure resource availability and timeline adherence.

Enterprise operation plans

Enterprise operation plans translate broader strategic goals into smaller, manageable milestones. They involve assigning responsibility for these milestones to department directors to ensure accountability for each plan segment.

When creating an enterprise operational plan, it’s vital to identify resource gaps, dependencies, and other potential obstacles to ensure seamless execution. This lets you set realistic, achievable milestones and achieve smooth interdepartmental coordination. Involving directors from the start is also crucial because their insights can reveal critical aspects you might otherwise overlook.

Consider a web design agency planning to expand their service offerings to include mobile app development over the next year. The enterprise operational plan might include milestones such as hiring app developers, training current staff in responsive mobile design , and marketing these new services to potential leads. You might also ask the development head to oversee recruitment and training and involve the marketing director in developing strategies to promote the new services.

IT operation plans

IT departments confront unique challenges due to rapid cybersecurity threats and their critical role in every business sector. Unlike other departments focusing on sales and marketing, IT departments must ensure the organization’s technological structure is robust, secure, and current.

IT operation plans typically outline how the department will adapt to business changes, like scaling up for new hires, migrating from a legacy system to a new one, and safeguarding the organization against evolving cybersecurity threats.

If you’re preparing for a major server infrastructure upgrade, for instance, an IT operation plan will outline steps like evaluating current server and hosting capacities, selecting new hardware and infrastructure, and scheduling website migration to new servers. The plan would include specific timelines — such as completing server evaluations by the end of the first quarter and starting the migration in the second quarter — to ensure minimal downtime and a smooth transition for all hosted websites.

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Key elements of an operational plan

No matter the type you’re creating, most operational plans include the following core traits.

Operational plans should be clear and to the point. While comprehensive coverage is important, elaborating too much risks misinterpretation and becoming bogged down in the details. Focus on concise, direct explanations and allow the details to unfold during project execution.

Team buy-in is essential for success. Instead of leaving the executive team to dictate the plan exclusively, involve team members in its creation. A collaborative approach helps garner buy-in and fosters feelings of ownership and responsibility toward the plan’s objectives. This involvement translates to increased motivation and commitment because team members feel more likely to invest effort in a plan they helped shape.

Consistency

Consistency in operational plans is crucial for their effectiveness and for establishing organizational trust. It involves applying the same standards and procedures uniformly across all departments and teams. By consistently applying rules and policies, you ensure every organizational element operates under the same guidelines, enhancing fairness and reducing confusion. Consistent execution of your operational plan also streamlines progress and success tracking because the criteria and methods used for each remain uniform.

Specify the processes and methodologies each department should use. If the design team uses an agile, iterative process , for instance, implement similar practices in other departments like IT. This standardization enables smoother collaboration and operational harmony.

Key performance indicators

Every operational plan needs well-defined key performance indicators (KPIs) from the outset. These should include:

• Leading indicators provide early insights into your strategy’s effectiveness by signaling shifts and trends ahead of their full realization. By monitoring these indicators, you can gauge your strategy’s immediate impact and proactively adjust your approach. Indicator examples include customer satisfaction levels, changes in market share, and fluctuations in sales figures.
• Lagging indicators reflect the outcomes of your operational efforts by providing historical data on your plan’s efficacy after execution. Key lagging indicators include metrics like the time taken to complete projects, support ticket volumes, and total expenses incurred. Analyzing these metrics also helps identify improvement areas, like optimizing resource allocation, enhancing customer support processes, and streamlining operational workflows.

Constraints

Acknowledge any assumptions and constraints within your plan, such as technological limitations, tight deadlines, and regulatory requirements. Being upfront about these factors is essential for setting realistic expectations and guiding effective task execution. And it ensures everyone involved understands the framework they’re operating in.

Say you’re building an agency website in the European Union (EU). A critical constraint would be compliance with data protection regulations like the General Data Protection Regulation (GDPR). You must keep this constraint in mind as you develop your operational plan because it affects the technology and processes used for data handling and shapes your website’s design and functionality. For instance, you’ll likely need to integrate clear consent mechanisms for data collection, prominent user data management tools into the website’s layout, and GDPR-compliant technologies for data processing and storage.

The 5 steps of the operational planning process

Enterprises develop operational plans through five strategic steps, each essential for shaping an actionable and effective strategy. Let’s explore what this planning process looks like.

1. Set goals

Establish specific, immediate business goals that align with your strategic plan. This might include launching a redesigned website, increasing online sales by a specific percentage, or reducing digital marketing expenses.

Make these goals ambitious yet adaptable, allowing for flexible responses to unexpected challenges. This step lays the foundation for your operational strategy and aligns every subsequent action toward these well-defined objectives.

2. Allocate resources

After establishing your goals, evaluate your capacity to achieve them. Analyze your current resources and identify what additional expertise, technology, and budget you require. This step isn’t just about highlighting what’s missing — it’s about strategizing how to scale your business to accommodate these needs.

3. Define KPIs

Select KPIs that align closely with your operational goals and ensure they reflect key aspects of your strategy. These KPIs should include leading indicators, like website traffic and user engagement rates for predictive analytics, and lagging indicators, such as satisfaction scores post-launch, to evaluate past performance. Consistently apply these KPIs throughout your project to monitor progress and keep the team focused on core objectives.

Consider using digital analytic platforms like Google Analytics to track KPIs. These tools offer detailed insights into traffic and user behavior. And you can set up dashboards to visually represent these metrics to help spot trends and patterns without combing through data.

Suppose you notice rising bounce rates on a specific webpage — this might indicate user disinterest or navigational issues. In response, you might pivot to revise the page’s copy, restructure its visual hierarchy , or simplify the navigation structure to make it more engaging and user-friendly.

4. Prescribe processes

Develop clear and detailed plans for how your teams should execute tasks. This clarity guides them through each stage, reducing confusion, ensuring consistency, and enhancing productivity.

To communicate these procedures to your team, use tools like flowcharts. They simplify and clarify each operational plan phase and help ensure everyone understands their responsibilities.

For large-scale projects, consider using project management software like Asana, Trello, or Jira. These platforms offer features like task assignment, deadline tracking, and real-time communication, and they provide a centralized platform for monitoring progress and maintaining team alignment.

5. Determine milestones

Create a road map that outlines clear, measurable goals and specific objectives. This map transforms your operational plan into achievable targets, helping teams visualize where they’re headed and the benchmarks they need to hit. Host regular meetings when outlining your milestones — this consistent evaluation ensures everyone moves forward in sync, maintaining the necessary momentum to achieve the plan’s goals.

In a web development project, for example, these evaluations might reveal if certain phases, like design or development, have too few or surplus resources. Identifying these imbalances lets you efficiently reallocate resources to ensure each department has what it needs to meet its milestones effectively and on schedule.

Get started with Webflow

Operational planning thrives on agility, and Webflow has the tools you need to effectively navigate this dynamic environment. With Webflow, you can build flexible websites that keep pace with your operational goals and integrate with analytics and targeting tools for informed operational decision-making .

Learn how Webflow Enterprise can be a part of your operational strategy, and harness a visual-first design platform that lets you create and adapt web content in real time.

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Define goals with an operational plan template

Employees who understand their roles and how they contribute to overall company success tend to be more invested and feel more valued. That engagement can lead to more productive and satisfied employees.

One way to proactively ensure employees feel fulfilled is by creating a strategy on an operational plan template, a tool that can propel your company’s short and long-term success. Before we share what this template looks like, however, it’s always good to refresh ourselves on its purpose and how it can drive results.

Get the template

What is an operational plan template?

An operational plan template defines company goals and creates detailed outlines for how each employee, team, or department contributes to efforts. A smaller business may use these templates to outline an employee’s daily tasks while larger organizations might create outlines on a department or team level.

Why should you use operational plan templates?

Operational plan templates provide a transparent view of your company’s daily procedures and highlights how each department’s roles contribute to a smooth operation. By using an operational plan template, you can understand how your company ticks and develop a solid structure to ensure all cogs move in the same direction. An operational plan template:

• Helps define employee roles and how they contribute to your organization’s goals
• Provides detailed instructions on daily operating tasks
• Creates an understanding of how different departments’ roles come together to achieve goals
• Potentially leads to higher job satisfaction for increased employee productivity
• Defines short and long-term goals
• Provides guidance on realistic deadlines for specific goals
• Helps you draw conclusions about resource needs and make financial projections
• Allows everyone within your organization to always be on the same page
• Creates transparency within your organization, leading to greater trust and loyalty among employees

You can increase the benefits of operational plan templates by including as much detail as possible when designing or using them. Though you may also want to create custom templates for specific uses, having examples on-hand can help inspire which areas to focus on for your business operation.

What are some examples of operational plan template

Operational plans are important to businesses in a variety of contexts. An entrepreneur might create an operational plan so they have a series of guideposts and a better understanding of the company mission, vision, and values when launching a startup. A well-established business might use an operational plan as an overall  path for the future. The following operational plan templates can help you create a robust business structure:

Single-use operational plan template

You can apply a single-use Operational Plan Template to goals, visions, or transitions outside normal operations. You might create a single-use operational plan when you start your company, expand to an additional location, or undergo rebranding. Other goals that may call for this type of operational plan include:

• Expanding your company’s online presence
• Offering your products or services online
• Hitting a specific sales milestone, such as reaching your thousandth sale
• Closing any skill gaps in your existing workforce
• Increasing efficiency in a specific department

Having a plan for one-time or short-term company goals can help you define, achieve, and measure success. Individual departments may also create single-use operational plans to drive specific efforts. Human resources, for example, may create a hiring plan.

Ongoing operational plan template

An ongoing operational plan template defines long-term organizational goals. It can create transparency into how your company delegates and achieves daily tasks under normal conditions. The beauty of an ongoing operational plan is that you can update it as you achieve goals or gather new research and metrics that support more informed decisions. For example, if you conduct new research that determines that one of your goals cannot be met with the resources you have available, you can update your ongoing operational plan to indicate the challenges and steps to take to get your organization’s goals back on track.  An existing operational plan can easily grow and change with your organization.

Map your road to success with monday.com’s operational plan template

Our customizable template lets you create documents that suit your organization’s unique needs and goals, whether you’re working toward a one-time objective or detailing ongoing daily operations. Pair the template with other work productivity tools on monday.com to make business planning streamlined and effective in real-time. On monday.com you can:

• Automate recurring tasks: monday.com lets you automate routine tasks to make better use of valuable resources, such as notifying managers when you complete a task, saving on time and resources.
• Integrate essential tools into one platform: If your company uses multiple tools for project management, planning, or metrics — such as Slack, Google Calendar, Data Studio and more — accessing them from a single Work OS saves time and prevents confusion.
• Collaborate with your teams: Our Work OS allows you to seamlessly collaborate with your teams or departments in-person or remotely through updates, tagging functions, automations, and other features built for fostering communication
• Monitor performance: Our project monitoring dashboard lets you view all tasks and projects from a single screen, making it easier to see where you stand on goals and deadlines.

Using the above features plus several others, our operational plan template pairs help you better understand your goals and map the road to success in detail. But of course, an operational plan template isn’t the only business planning resource necessary for success. There are several other templates that can be more useful for specific applications.

Related templates to operational plan templates

An operational plan template can help you detail daily tasks and assign them to employees. From there, other operations templates can help you increase productivity and manage specific aspects of your plan. Let’s take a look at a few supplementary templates.

Facilities request template

Your facilities management and operational teams are constantly in motion, working hard to go over questions, complaints, and work requests. Our facilities request template can help ease their workload by streamlining requests. Use the facilities request template to:

• Centralize facilities requests: Compiling all facilities requests in one place makes managing things easier. On monday.com, relevant employees can check on the status of requests, saving time on back-and-forth emailing.
• Track completion time for each request: Our facilities request template has a time tracking column showing how long a request took to complete. This can help you set internal processes and future expectations accordingly.
• Track every ticket from one place: View all your tickets and where they currently stand. You can use this information to help identify bottlenecks so you can apply proactive solutions to workflows and processes.

Finance request template

Our finance request template helps you stay on track by setting deadlines and receiving notifications for due dates. It also helps you gather finance requests in a single location for an at-a-glance financial summary, while color-coding and other visual cues can indicate priority requests.

Business plan template

Business and operational plans work hand-in-hand to support your company’s vision and goals. You can use a business plan template to outline your goals and detail how the company will work toward them. Our business plan template provides a breakdown of every applicable section for easier plan creation.

A business plan and operational plan serve similar purposes, however, they’re two separate but complementary documents.

A business plan details long-term goals and the tasks or milestones necessary to achieve them. An operational plan details the daily tasks required to be successful with long-term goals. Get more information about what’s included in an operational plan in our FAQs below.

FAQs about operational plan templates

What should you include in an operational plan.

An operational plan should include:

• An executive summary that provides an at-a-glance overview
• Clear, well-defined goals and objectives and time frames for them
• The day-to-day activities required to bring those goals to fruition
• Quality standards and key performance indicators to help measure success
• A process for monitoring progress
• Requirements for staffing and resources

Ongoing operational plans should focus on the daily details required to keep the company moving forward. One-time operational plans should concentrate only on specific short-term objectives.

What is an operational plan example?

An example of an operational plan is a document created by a clothing manufacturer to lay out a plan to increase its presence on social media. The company may have noticed that referrals come from social media and it wants to capitalize on this trend. The basis of its operational plan may include:

• Objective: Increase social media presence
• Category: Single-use plan
• Required resources: Social media training, contest prizes, additional dedicated man hours, advertisement funds
• Tasks: Run A/B testing on social media advertisements, research trending post formats to recreate them, plan and execute referral or engagement contests, increase company engagement on social media with fans/customers

From this starting point, the operational plan would detail each of those tasks, including how to allot resources and employees. For an outline of what to include in an operational plan, check out monday.com’s operational plan template.

How do you write an operational plan?

To write an operational plan, you should:

• Identify important goals, milestones, or objectives
• Determine key initiatives to help achieve those goals
• Define key assumptions you’re making about challenges
• Decide how you’ll measure success
• Clearly outline responsibilities and tasks
• Assign responsibilities and tasks to team members
• Create reasonable deadlines
• Define necessary resources to accomplish tasks
• Provide training as necessary

Align daily tasks and goals with monday.com’s operational plan template

An operational plan template lets you align daily tasks with your company’s short- and long-term goals. Using the template simplifies plan creation by ensuring you don’t miss a single detail.

Once your plan is ready, put it into action with our powerful Work OS. Ensure team members can see tasks and other information in views that work for them, and manage assignments and workflow automations on monday.com to make it easier to complete the tasks required to reach your goals.

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How to write an operational plan in business plan?

• What is an Operational Business Plan?

An operational business plan is explaining how you will achieve your business goals. An operational plan discusses everything from management, employees, products or services , project management, and supply chain to HR. 

What Goes Into Operational Plan In Business Plan

How do you write operational plan for business plan.

The details of an operational plan business plan will be different for every business, depending on its type, size, and product. 

A business operational plan should also show that you understand the manufacturing or sourcing of the product you are going to sell and you have already progressed in your business.

WiseBusinessPlans is one of the best business plan writing companies !

An operational business plan is needed for the business as a whole and for each department separately too. For a small business, these three criteria can help develop an operational plan.

Set Goals and Build Operational Plan Around Goals 

You have already set goals for your business; it is time to set goals for different departments or divisions. 

The department goals will align with business goals and help the company achieve them. 

After setting goals in an  operational plan in business plan , you will break down the process of achieving them into small, measurable, tasks. You have heard about SMART goals ; the SMART goals principle is applicable everywhere in the operations plan business plan. 

The small and measurable tasks we mentioned before are also called key performance indicators (KPIs). A KPI shows a measurable value contributed towards achieving business goals.

Assign Responsibilities and Tasks 

So far in your  operational plan in a business plan, y ou have set your business goals and department goals. You have broken it down into SMART tasks and KPIs. It is time to assign these tasks and responsibilities to the right people. 

A goal without a deadline is just a dream; set a timeline for each goal. Also, explain to your team if this is an ongoing or a single-use plan. 

You can understand single-use plans in terms of a project and an ongoing project in terms of the tasks you do when you don’t have a project.

Outline Resources 

Define the resources you need for each goal. These resources may include spending on software, tools & equipment required to work, training, etc. 

Determining resources requirement when writing an  operational plan in business plan  helps you plan well and increase the efficiency of the team.

You will have a top-notch operation plan in business plan when you write about these aspects.

• Prioritize Goals: Focus on important goals only. It will be hard to decide but you should direct your time and efforts to achieve the goals with the most impact.
• Set KPIs: KPIs are the small tasks that contribute toward achieving goals. KPIs measure the growth of your business.
• Discuss Manufacturing Process: If you are manufacturing your products, outline the manufacturing process. Discuss manufacturing facility, manufacturing capacity, material sourcing, factory to warehouse logistics, and warehouse to sale points logistics.
• Include Costs and Expenses: What are the expenses you will need to make to achieve these goals? Give a detailed breakdown of the costs and expenses required for each goal. 
• Set Budgets: Set budgets for each goal. Fixing a budget will help you get creative within the resources and not overspend. 
• Build a Hiring Plan: You will need to hire people regularly. Develop a hiring plan and define who you want to hire, what will be the hiring process, will be the salaries and benefits for the employee.
• Set Work Hours: Determine what will be your working hours. Will you go for the typical 9-5 or you will need employees in off hours for completing projects
• Determine Employee Location Requirements: Decide if you need an employee in the office or on the site. See if you can allow employees to work from home if the need arises.

Risk Management: In the operational plan in a business plan,  Identify the risks you are facing and prepare a contingency plan when needed.

Set Quality Control Processes: Quality control is used to maintain and improve product quality. Assign quality control systems building and management to an employee or create a department for better management. 

Develop Management Plans: Management plans are an overreaching framework for the company management, department management, project management, etc. See how many management plans you need to make for your business.

Set Timelines and Milestones: Milestones are the big achievements. Setting milestones and timelines will help your team understand what they need to achieve and how much time they can take for it.

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Operational Plan For Businesses With A Physical Product

When you are going to sell a physical product like shoes, clothing, tool, etc, you will need to plan the manufacturing or sourcing process. 

Many businesses opt for manufacturing at their facilities while others may prefer OEM manufacturing. In both cases, you need to outline the process and establish policies. 

Here are the parts of an  operational plan in business plan  for a business selling physical products. 

Discuss how you will manufacture products for your business. If you have a manufacturing facility, explain the manufacturing capacity of your business. 

If you are sourcing your product from a manufacturer, discusses who is the manufacturer or how you will select a manufacturer.

Industry Association Membership

Approach industry associations like chambers of commerce or organizations of the manufacturers for the same/similar products as you. 

Getting into industry association memberships help you with networking, exploring new opportunities, understanding the market better, and preparing you for the long term.

Supply Chain

A supply chain is important for every business selling a product. 

A supply chain is a network between a manufacturer and a seller. It includes manufacturer, wholesaler, distributor, shipping, and fulfillment to the seller location. 

Even when you are manufacturing products for your business, you will need to establish a different supply chain. You will need to build materials sourcing supply chain. You will also need to plan how the products will be shipped to the retail locations from your warehouse.

Quality Control 

Explain your quality control process in detail when writing an  operational plan in business plan . 

A quality control process is aimed at maintaining or improving product quality. Quality control is set up with safety measures to make sure faulty products don’t end up with the customers. 

Quality control processes are different for every business and largely depend on the product type.

Still, need help? Get our Professional Business Plan Writing Services and get your business plan done by professionals. 

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An operational plan outlines the day-to-day activities and processes required to run your business. It covers areas such as production, logistics, inventory management, facilities, staffing, and other operational aspects.

An operational plan should include details about your business’s physical location, equipment and technology, production processes, supply chain management, staffing requirements, and key operational milestones or targets.

Define the production or service delivery process in the operational plan by outlining the steps involved, the resources required, and the timelines for each stage. Include details about quality control measures and any necessary regulatory compliance.

Address potential operational challenges or risks in the plan by identifying them and providing strategies or contingency plans to mitigate them. This could include backup suppliers, emergency response protocols, or alternative production methods.

The operational plan demonstrates how your business will execute its strategies and deliver its products or services. It helps stakeholders understand the practical aspects of your business, ensuring that resources are allocated effectively and operations run smoothly.

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How to Write a Business Overview (+ Examples)

• March 21, 2024
• Business Plan , How to Write

Crafting a compelling business overview is a pivotal step in developing a robust business plan. This section not only introduces your business to potential investors, clients, and partners. It also lays the foundation for understanding your company’s business model, target audience and the unique value proposition it brings to the market.

In this comprehensive guide, we’ll guide you through the essentials of writing an effective business overview, accompanied by 2 practical examples taken from real business plans.

Whether you’re an entrepreneur drafting your first business plan or a seasoned business owner, drafting a clear and concise business overview is crucial for articulating your business to investors and lenders. Let’s dive in!

What is a Business Overview?

A business overview in a business plan is a section that provides a concise description of the fundamental aspects of the business.

It serves as an introduction to the business, offering readers a clear understanding of what the business does, its mission, vision, and the market needs it intends to satisfy.

The business section is crucial for setting the context for the detailed plan that follows, giving stakeholders (including potential investors, partners, and employees) a snapshot of the business’s purpose, business model and products and/or services.

What to Include in a Business Overview

The key elements to include are:

• Business Name: The legal name of the business
• Location: its physical location(s) , meaning its headquarters and office(s) and/or store(s).
• Business Structure: The legal structure of the business (e.g., sole proprietorship, partnership, corporation, LLC).
• History: A brief history of the business, including its founding, milestones achieved, and any significant changes or developments.
• Products or Services: A description of the products or services offered by the business, highlighting what makes them unique or valuable to customers.
• Target Market : An overview of the business’s primary customers – who they are and what needs or problems the business aims to solve for them.
• Business Model: An outline of how the business plans to make money, detailing its revenue streams, pricing strategy , sales and distribution channels, and any major partnerships or customer segments.

How to write a Business Overview: 4 Steps

Writing a compelling business overview and operations section is a crucial element of a business plan. It provides readers, including potential investors and partners, with a clear picture of what your business is, what it does, and how it operates on a day-to-day basis. Here’s a structured approach to writing these sections:

1. Start with an Introduction

Begin your business overview section by introducing the name of your business, its location, and the type of business structure (e.g., LLC, corporation, partnership). Provide a brief history that includes the founding story, milestones achieved so far, and the current stage of the business.

Key Components Business name and location Type of business entity Brief history and current stage* * optional: only if you are preparing a business plan for an existing business

2. Define Your Business Concept

Explain your business concept clearly and concisely. What is the core product or service you offer? Who is it for, and what needs does it address? Highlight what makes your offering unique and how it stands out in the market.

Key Components Description of products or services Target audience Unique selling proposition (USP)

3. Detail Your Business Model

Clearly articulate how your business intends to make money. This includes your revenue streams, pricing strategy, sales and distribution channels, and any key partnerships that support your business model.

Key Components Revenue model Pricing strategy

4. Describe Your Operations

Moving into the operations part of your business plan, provide a detailed account of how your business runs daily. This should include your location(s), facilities, equipment, and the technology you use. Explain your production processes or how your service is delivered, your supply chain, and any logistics involved.

Key Components Physical location(s) and facilities Production process or service delivery method Supply chain and logistics Inventory management Any proprietary technology or processes

Business Overview: 2 Examples

Here are 2 examples you can use as an inspiration to create yours. These are taken from our coffee shop and driving school business plan templates.

Coffee Shop Business Overview

Driving School Business Overview

Privacy Overview

Business Operations: What They Are (and How To Improve Them)

Updated: March 11, 2024

Published: October 22, 2023

The success of your business relies on the processes you put into place. Ignore this for too long, and you’ll run into issues with properly training workers and quality assurance. 

When workers lack proper procedures to follow and tools to implement them, it trickles down to your bottom line. It hurts the customer experience and profitability. Plus, it makes working in your company less desirable (hello, high turnover rates). 

How do you prevent this from happening in your company?

The answer lies in building business operations at every level so your company is efficient, scalable, and effective.

Table of contents:

What are business operations?

• Importance of business operations

Types of business operations

How to improve business operations, business operations examples.

Business operations refer to all the activities and procedures a company undertakes to create and deliver its products or services. This includes all the routine tasks and functions essential for the efficient running of a business, such as managing the supply chain, production, customer service, and administrative duties.

Importance of business operations 

Maintaining fluid business operations is vital to achieving the company’s goals. Here’s a look at some of the ways they improve your business and help it succeed:

• Efficiency: Effective business operations ensure that tasks and processes are carried out efficiently, minimizing waste of time, resources, and effort. This leads to cost savings and increased productivity.
• Customer satisfaction: Smooth business operations enable businesses to provide timely and high-quality products or services to customers. This enhances customer satisfaction, loyalty, and retention.
• Cost control: Well-managed operations help identify and eliminate unnecessary expenses, reduce overhead costs, and optimize resource allocation. This leads to improved profitability and financial stability.
• Competitive advantage: Streamlined operations give businesses a competitive edge by enabling them to deliver products or services faster, at a lower cost, or with better quality than their competitors. This helps attract and retain customers in a crowded market.
• Scalability and growth: Efficient operations lay the foundation for business scalability and growth. By optimizing processes, businesses can handle increased demand, expand into new markets, and seize growth opportunities.
• Risk management: Effective operational processes include risk management strategies to identify and mitigate potential risks and uncertainties. This helps businesses minimize disruptions and maintain continuity in the face of challenges.
• Employee engagement and satisfaction: Well-organized operations create an environment conducive to work by establishing clear processes, roles, and responsibilities. Employees understand their tasks and expectations, reducing confusion and increasing efficiency.
• Compliance and legal requirements: Sound business operations ensure compliance with legal and regulatory requirements, reducing the risk of penalties, lawsuits, and reputational damage.

The business you run will determine the type of operations you implement. Below are listed some of the typical operations you’ll find in many companies. 

Production operations

Production operations involve the creation and delivery of products or services. By optimizing production processes, businesses can reduce waste, improve quality, and enhance overall efficiency.

For instance, a manufacturing company may implement lean manufacturing techniques to streamline its production line, reducing lead times and improving customer satisfaction.

Here are some tips for improving production operations:

• Conduct a thorough analysis of your production processes to identify bottlenecks and areas for improvement.
• Implement lean manufacturing principles to eliminate waste and streamline workflows.
• Embrace automation and technology solutions to increase productivity and reduce human error.
• Regularly monitor key performance indicators (KPIs) such as production cycle time and defect rate to track progress and identify areas for further optimization.

Marketing and sales operations

Marketing and sales operations are responsible for attracting customers, generating leads, and closing deals. Aligning these operations is crucial for driving revenue growth.

For instance, you can connect the data gathered from sales for marketing teams to use to attract customers better.

Consider the following strategies to improve marketing and sales operations:

• Develop a comprehensive marketing plan that aligns with your target audience and business goals.
• Leverage customer relationship management (CRM) systems to track leads, manage customer interactions, and improve sales forecasting.
• Use data analytics to gain insights into customer behavior and preferences, enabling targeted marketing campaigns.
• Foster collaboration and communication between marketing and sales teams to ensure a seamless customer journey.

Financial operations

Financial operations involve managing the financial aspects of your business, including budgeting, accounting, and financial reporting. Streamlining financial operations is crucial for maintaining economic stability and making informed business decisions.

For instance, a company may implement automated accounting software to streamline its financial operations, reducing the time and effort required for manual bookkeeping.

Here are some tips for optimizing your financial operations:

• Implement cloud-based accounting software to automate bookkeeping processes and improve accuracy.
• Develop a robust budgeting and forecasting system to track expenses and revenue projections.
• Regularly review financial statements and key financial ratios to identify areas for cost reduction or revenue enhancement.
• Establish strong internal controls to prevent fraud and ensure compliance with financial regulations.

Human resources operations

Human resources operations include managing employees, such as recruitment, training, and performance management. Improving human resources operations can lead to higher employee satisfaction and productivity. 

For instance, a company may implement an online employee management system to streamline its human resources operations, making it easier to track employee performance, provide training opportunities, and enhance communication between HR and employees.

Consider the following strategies to improve your HR operations:

• Streamline the recruitment and onboarding process to attract top talent and reduce time-to-hire.
• Provide ongoing training and development opportunities to enhance employee skills and knowledge.
• Implement performance management systems to set clear goals, provide regular feedback, and recognize employee achievements.
• Foster a positive company culture that promotes collaboration, communication, and work-life balance.

Supply chain operations

Supply chain operations involve the management of the flow of goods and services, from sourcing raw materials to delivering the final product to customers. Optimizing supply chain operations can lead to improved efficiency and customer satisfaction.

For instance, a company may implement a real-time inventory tracking system to streamline its supply chain operations, allowing it to accurately monitor stock levels, reduce stockouts, and improve order fulfillment speed.

Consider the following tips:

• Develop strong relationships with suppliers to ensure timely delivery and quality control.
• Implement inventory management systems to optimize inventory levels and reduce carrying costs.
• Use data analytics to forecast demand and improve supply chain planning.
• Embrace sustainable practices in the supply chain to reduce environmental impact and enhance brand reputation.

Implementing the necessary operations into your business is only the first step. Now you must keep your business operations efficient and effective. Sometimes, this requires making changes and updates to keep your processes moving smoothly without affecting profit margins. 

Here are several steps you can take to improve your business operations. 

Conduct a business operations audit

A business operations audit is a thorough assessment of your current processes, systems, and resources. It identifies areas of improvement and highlights potential bottlenecks or inefficiencies in your operations.

For example, a retail store may conduct a business operations audit to evaluate its inventory management, point-of-sale systems, and customer service processes.

Tips to implement the step properly:

• Define the scope of the audit: Determine which areas of your operations you want to assess, such as supply chain management, production processes, or customer support.
• Gather data and information: Collect relevant data, including financial records, customer feedback, and employee input, to gain a comprehensive understanding of your operations.
• Analyze and identify areas for improvement: Evaluate the collected data to identify specific areas where operational efficiency can be enhanced or bottlenecks can be eliminated.
• Develop an action plan: Based on the audit findings, create a detailed plan outlining the necessary changes, timelines, and responsible individuals or teams.

Streamline processes and workflows

Streamlining processes and workflows involves identifying and eliminating inefficiencies in your business operations. By optimizing how tasks and information flow within your organization, you can improve performance, reduce costs, and enhance overall productivity.

For example, a manufacturing company may streamline its production process to reduce lead times and increase output. By analyzing the current workflow, it identifies bottlenecks and unnecessary steps slowing down production. 

Tips for identifying and eliminating inefficiencies in processes:

• Map out your processes: Visualize how tasks and information flow within your organization to identify potential bottlenecks or unnecessary steps.
• Involve employees: Seek input from your employees who are directly involved in the processes. They often have valuable insights and suggestions for improvement.
• Standardize procedures: Establish clear guidelines and standard operating procedures (SOPs) to ensure consistency and efficiency in executing tasks.
• Leverage automation and technology: Implement software or tools that automate repetitive tasks, streamline communication, and improve collaboration, such as customer relationship management software (CRM), inventory management systems, and project management tools.

Track performance metrics and key performance indicators (KPIs)

Performance metrics and KPIs provide quantifiable measures of the success of your business operations. They help you evaluate performance, identify areas for improvement, and make data-driven decisions.

Examples of relevant metrics and KPIs for different business operations include revenue growth, conversion rate, average order value, average response time, customer satisfaction score (CSAT), first-call resolution rate, defect rate, and production cycle time. 

Tips for setting and tracking performance goals using metrics and KPIs:

• Align metrics with business objectives: Choose metrics directly contributing to your overall goals.
• Set specific and measurable targets: Clearly define what success looks like and set achievable targets.
• Regularly review and analyze data: Monitor performance metrics regularly to identify trends, patterns, and areas for improvement.
• Communicate results and provide feedback: Share performance data with employees, recognize achievements, and provide constructive feedback to drive continuous improvement.

There’s no one way to build your business operations. There are various methods, technologies, and strategies you can use to enhance your processes.

Here are several examples of how companies across industries can design and improve its operations:

• Production operations: A manufacturing company implementing a just-in-time inventory system to reduce inventory holding costs and improve overall production efficiency.
• Marketing and sales operations: A software company implements a lead scoring system, enabling the sales team to prioritize leads based on their likelihood to convert, increasing conversion rates.
• Financial operations: A retail store implemented an inventory management system that integrates with its accounting software, enabling real-time tracking of inventory costs and reducing discrepancies.
• HR operations: A hospitality company implements a comprehensive employee training and development program, resulting in increased employee skills, improved customer service, and reduced turnover rates.
• Supply chain operations: A clothing manufacturer implements a just-in-time inventory system, allowing them to receive raw materials and produce garments based on customer demand, resulting in reduced inventory holding costs, improved production efficiency, and faster order fulfillment.

How you decide to build and innovate your business processes is entirely up to you. However, the reasons behind your methods should remain the same: to improve efficiency, employee engagement, and customer satisfaction. Get these right, and your operations will help your business thrive.

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How to Write a Bar Business Plan + Free Sample Plan PDF

Elon Glucklich

6 min. read

Updated March 17, 2024

Free Downloads: Sample Bar and Brewery Business Plan Templates

From sports bars to neighborhood pubs to upscale cocktail bars—drinking establishments are one of the oldest and most enduring types of businesses.

And the industry is projected to grow nearly 2.5% between 2023 and 2030, leaving plenty of opportunity for new businesses..

But competition in the bar industry can be fierce. You need to know your clientele, competitors, and how you’ll stand out if you want to succeed. Not to mention mapping out all the details of your financials and operations. 

Luckily, you can cover all of that (and more) by writing a business plan.

• What should you include in a bar business plan?

These are the typical sections to consider including in your bar business plan.

• Executive Summary
• Market Analysis
• Marketing and Sales Strategy 
• Operations Plan
• Business Overview

Financial plan

The sections you need will vary depending on why you’re writing a business plan and what you intend to do with it . 

Suppose it’s to manage your operations and not something you expect anyone outside of the business to read. In that case, consider keeping it to a few pages and skipping sections like the executive summary.

If you’re applying for a loan, then you’ll need a more formal plan that includes all the sections listed above.

Check out our step-by-step guide to writing a full business plan for more details.

• The 6 elements of an effective bar business plan

Executive summary

Your executive summary is a short, high-level overview of your entire plan. 

The summary should give readers a sense of what factors will make your bar successful. That could include securing a high-visibility location, partnering with a chef who will oversee meal preparation, or negotiating deals with brewers to get their beers in your bar.

If you’re seeking a bank loan for your bar, the lender will read your executive summary first. In all likelihood, they won’t read any further unless the executive summary grabs their attention. 

So, make it clear and convincing.

Market analysis

The market analysis may be the most important part of your entire business plan. 

It’s where you carefully research and document:

• Who your target customers are
• What they want
• What other establishments they may consider

Start by identifying the size of your market . Focus on the number of potential customers above the legal drinking age in your area. Then, segment these customers based on demographics such as age, income level, and lifestyle preferences. 

Then look into who you will be competing with. List and research other bars as well as indirect competition from restaurants, clubs, and even grocery stores that sell beer or home entertainment options.

Here are a few examples of what this process will look like:

Bar customer segmentation

If you find there are a lot of college students and younger adults near your bar location, you should cater your offerings to their tastes. But if you’re near office buildings or event venues, you may want to focus on older customers with more disposable income.

Will you offer a more diverse drink menu, better food, or a unique theme? Explain how these factors will set your bar apart and attract customers. Or, if your area lacks a certain type of bar, such as a sports bar or a high-end cocktail lounge, describe how filling this gap in the market will serve as your competitive advantage.

Marketing and sales strategy

Your market analysis gives you insights into potential customers. Your marketing and sales strategy is where you use those insights to get those customers in your door.

As you looked around at your competitive landscape, maybe you gained some insight into how your ideal customers discover new bars — through social media, online reviews, local event listings, or word-of-mouth.

Start by developing marketing strategies that are tailored to those channels . Consider tactics like:

• Creating engaging social media content showcasing your unique drinks, events and ambiance.
• Partnering with local businesses or events to increase visibility.
• Introducing special promotions to encourage repeat visits and attract new customers.
• Hosting themed nights or events to create buzz and attract specific customer segments.

In your business plan, document how you will implement these efforts and the resources required. 

Operations plan

The operations section of your business plan is where you detail the day-to-day requirements for running the bar smoothly. Start by describing your physical space and key equipment, such as:

• Beverage dispensing systems
• Glassware and utensils

Specify the types and number of each that you’ll need. Then you can address staffing needs, describing the roles of bartenders, servers, and support staff. Document in your plan that you’ll have a staffing strategy to cover peak hours.

You should also cover inventory management. Describe how you’ll stock alcoholic and non-alcoholic beverages, ingredients for cocktails and food. Be sure to spend time discussing supply chains for sourcing these ingredients.

Document the types of technology you’re using, like point-of-sale systems, inventory tracking, or customer reservation platforms. 

Finally, ensure that your operations plan demonstrates how you will comply with any licensing, health and safety regulations and that you have a plan for ensuring responsible customer behavior.

Business overview

The overview should fill in any gaps the reader may have, including:

• The name of your bar
• When it was founded (if it’s an existing business)
• The inspiration behind the business

You should include the background and qualifications of key team members here. Include their experience in the bar industry and any other experience that’s relevant to their position.

If you’re running an existing bar, discuss previous achievements like revenue milestones, recognitions, or community events you’ve hosted.

You don’t need a deep financial background to run a successful business. But it’s important to develop projections for how you expect the bar to perform. If you’re starting a new bar, consider that you’ll need to pay upfront costs like equipment, supplies, licenses and rent.

Then there are the ongoing costs like employee salaries, marketing, and continuing to keep your shelves stocked.

Making educated guesses about the future will help you determine what’s working, and where you should make adjustments as you run your business.

Include sales and expense forecasts in your plan. The financial section also should include a cash flow statement , income statement , and balance sheet .

Remember, no one knows exactly how the future will pan out — these projections are your baseline for how you think the business will do, and you’ll adjust them over time as you update your plan with actual results.

• Bar business plan templates and examples

To see how other bar businesses have created their plans, browse our free library of bar and brewery business plans . You can also check out our full selection of food and beverage business plans , or our entire library of over 550 business plans across industries.

Download as many as you want in PDF or Word format to help you write your own business plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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How To Start A Grocery Delivery Business (With FREE Business Plan Template)

• Market potential : Rapid growth is expected in online grocery delivery, with ample opportunities for small businesses.
• Business models : Options range from gig services and partnering with local stores or wholesalers, to connecting with farmers and offering personal shopper services.
• Key strategies : Success hinges on product quality, superior customer service, efficient delivery, and strategic marketing.
• Foundation steps : Write a detailed business plan, set up your administrative and legal framework, and invest in essential equipment and technology.
• Growth : Use a mix of traditional and digital marketing to attract customers, and focus on operational efficiency and customer satisfaction to expand.

Demand for online grocery shopping is growing steadily, with no signs of slowing down. Statista estimates that the number of people using online grocery delivery services will pass 2 billion by 2028 — and global revenue will surpass a trillion dollars by 2026 . That’s a lot of revenue to go around! 

Even though large retailers like Walmart and on-demand apps like Instacart dominate the market, there is plenty of room for smaller companies who can find the right niche and serve it well.  

In this article we’ll discuss the different types of grocery delivery business and how to get started. We’ll also look at startup costs, profitability and the pros and cons of starting a small business focussed on grocery delivery. 

💡If you’re already done your homework and just want to start planning, go ahead and use our free grocery delivery business plan template .

Choose your type of grocery delivery business

There’s a variety of ways to offer grocery delivery services, each with a different delivery model and different up-front investment needs. So the first step is to decide what niche you’d like to fill, and how much time and money you’re able to commit.

Online grocery delivery businesses tend to get all the attention, but this is one kind of business where you can do a lot offline. Here are five business ideas to start with:

1. Join a gig service

The simplest option is to sign up with a grocery delivery app like Instacart, DoorDash, GrubHub, Uber Eats,  or whatever the local equivalent is in your country. 

This has the advantage of being quick and easy to do if you don’t have startup funds. All you need is a mobile app and some kind of vehicle. But earnings can be limited, especially if you’re dependent on tips — and most of the upside goes to the app. It could be a good way to get an on-the-ground sense of the target market, though.

2. Partner with a local grocery store

Partnering with a local grocery store has the potential to create a rewarding symbiotic relationship. The store has the supplier connections, the inventory, and the knowledge of what works in the local market. You could provide a delivery service that brings in new customers and increases their turnover, while building a good small business for yourself. You could kick-start this partnership with some simple marketing tools like in-store fliers and posters.

Think carefully about how order management would work. This is a business that doesn’t necessarily need to be online, which could save a fortune in app development and fees to faraway third parties. The demographics of your target market are important here. For example, many older customers don’t want, or can’t afford, the latest phones with fancy apps. Providing a simple phone-based ordering system could fill a real gap in the market, while providing a customer experience with the personal, human touch that many people crave.

Delivery scheduling will be important to making this business profitable. Delivering one order at a time will probably be too expensive – working a day or two ahead to schedule multiple deliveries in a single round will make the difference. 

You’ll also need to work out how much to charge in delivery fees and how to share the revenue. An arrangement that works for everyone could be the basis of a sustainable business. 

3. Deal directly with a wholesaler or fresh produce market

Working with a wholesaler or market is another good option that can give you access to a huge range of products at competitive prices. This could mean you’re able to offer your customers better deals, fresher produce, and a more diverse range of items than they might find in a regular store.

Start by pinpointing which wholesalers or markets align with your business values and customer needs. Are you aiming to deliver organic produce? Bulk pantry items? Ethnic foods that are hard to come by? Once you've nailed down your niche, approach wholesalers with a clear proposal. Show them how your delivery service can bridge the gap between their bulk offerings and customers craving convenience.

Ordering from wholesalers typically means buying in larger quantities, so you'll need a plan for storage and inventory management. This might require renting space or managing a rotating stock to keep everything fresh.

The financial side will be crucial here, too. Since you're buying in bulk and likely at lower prices, you'll need to work out pricing that covers your costs, remains attractive to customers, and still turns a profit. It's a balancing act, but get it right, and you're on your way to a thriving delivery service that stands out with quality and value.

Case Study: Marché Second Life

You could get really creative with this model. For example, Routific customer Marché Second Life rescues “ugly” foods, shipping excess and odd-looking produce as well as specialty items like sausages, cheese, and coffee directly to consumer doorsteps across Montreal. They’re reducing food waste, saving money for consumers and building a great business all at the same time!

4. Connect to farmers

Hooking up with local farmers can plant the seeds for a flourishing grocery delivery business that’s all about fresh, local, and sustainable. Imagine delivering the kind of produce that hasn’t spent days in transit, still has the morning dew on it — AND supports the local economy. This kind of partnership could give your business a green edge that's both eco-friendly and customer-pleasing.

Get to know the farmers in your area and find out who’s open to partnering for a delivery service. They might be selling the freshest fruits and veggies, dairy, eggs, and even meats, but not getting the reach they want. Your delivery service can be the link that gets their farm-fresh goods into the kitchens of more locals.

When you pitch your idea to farmers, emphasize the mutual perks. You’ll be getting the good stuff straight from the source, and they'll get their products to a wider audience without having to manage deliveries themselves. Plus, your customers will love knowing that their groceries are coming from just down the road — it's a wholesome story that sells itself.

Case Study: Walden Local

Walden Local is a great example of a fruitful partnership with local farmers. Their direct-to-consumer farm share program enables customers to sign up for monthly or bi-monthly deliveries of 100% grass-fed beef, pasture-raised pork, lamb, chicken, and wild-caught fish — all raised locally in New England and New York.

5. Work directly with customers

For a personal touch, consider offering services as a personal grocery shopper or concierge. This model is about more than just delivering groceries; it's about curating shopping experiences tailored to each customer. Whether it’s tracking down specialty items, ensuring that the avocados are perfectly ripe, or even coordinating with other local services for a one-stop delivery, your attention to detail could set you apart.

This hands-on approach may appeal to customers who are looking for something a bit more bespoke than the standard grocery delivery — think busy professionals, individuals with specific dietary needs, or folks who simply value their time too much to spend it wandering up and down store aisles with a shopping list.

To make this work, you’ll have to be willing to adjust your schedule at short notice and be on the ball with your communication skills, maybe getting texts or calls about last-minute dinner party needs or particular preferences. You’ll become a trusted part of your customers' routines, the go-to person when they need to make sure everything is just right.

Your pricing strategy here needs to reflect the premium service you’re offering. While you won't need a massive marketing budget (word-of-mouth will likely be your best friend), you will need to ensure your time and efforts are well-compensated. Building solid relationships with customers and consistently exceeding their expectations is key to making this personal approach profitable.

______________

As you can see, there’s no shortage of ideas. To choose the model that’s best for you, consider:

• Your existing knowledge, skills, and preferences
• How much you have available to invest 
• Whether you want to employ other people
• The demographics and culture of your town, city, neighborhood or other local area.

Make your grocery delivery business stand out

You want to be remembered for all the right reasons — that batch of strawberries that tasted like sunshine, or the way you replaced a bruised apple without being asked. 

Here are some ways to ensure your business not only stands out, but also becomes the go-to choice for your customers:

Product quality

This is one of the most challenging things about operating a grocery delivery business: you’re dealing with perishable products most of the time, and quality is the cornerstone of your business. Whether it's the crunch of a carrot or the scent of freshly baked bread, what you deliver has to inspire delight every single time. To ensure consistent high quality you can:

• Build relationships with great suppliers who understand that you won't accept anything less than the best. If you're sourcing from farmers or wholesalers, make regular visits to check on quality and freshness. Your customers trust you to bring the market's best to their doorsteps, so make sure you're doing just that. And if your suppliers also feel they’re benefitting from doing business with you, they’re more likely to alert you when there’s something special on offer. 
• Treat your produce tenderly . Cooler boxes, padding, dollies – invest in whatever it takes to handle your products with the greatest possible care. You’ll be the last person to handle them before they reach the customer's doorstep, so the quality is on you. 

Customer service

Your customer service can make or break your business. Be there for your customers, always ready to listen and respond. Whether it's through a friendly chat on the phone or a quick resolution of an issue, show them that you value their business. 

If you make a mistake — and let's face it, everyone does — own up to it and make it right. Sometimes, how you handle a slip-up can leave a more lasting impression than the slip-up itself.

As you grow, keep talking to your customers and listening to what they say. They’re the best source of info on how your business is doing and what you could do better. Maybe they’d appreciate a wider range of delivery times or they’re looking for new grocery items. These insights can guide your growth and help you and your partners adapt to changing needs

Personalized experience

Get to know your customers. Not their whole life story (unless they want to share and you really want to know), but what they like and what they need. Use this knowledge to tailor their shopping experience. Suggest new products they might like or remind them when it’s time to restock on their regular items. A little personalization goes a long way and shows your customers that they’re not just another order number to you.

Efficient delivery

In the delivery business, timing is everything. Find the sweet spot between being as quick as possible and still maintaining quality. And invest in a route optimization app! It will help you plan much shorter, more efficient routes – which means more deliveries per route, less time on the road and lower costs. 

💡 Routific is made for local delivery businesses – and it’s free to try for 7 days. Get your free trial now .  

And of course, let's not forget marketing. Use social media, local advertising, and word-of-mouth to tell your story. Share customer testimonials, behind-the-scenes glimpses of your operations, and highlight special products. Build a brand that feels like a neighbor, not just a delivery service.

Write your business plan

Any successful business starts with a great business plan. There are plenty of online and offline resources to help you with this. In the U.S., the Small Business Administration has a great website at sba.gov . Your local library or chamber of commerce are also both great places to find detailed, relevant local advice. 

Very broadly, though, you’ll want to choose a business name, conduct a market analysis of your target audience, and figure out how much you’ll need to spend on startup costs to make your business a reality. Additionally, you’ll want to include a timeline for when you plan to launch, and a marketing plan.

Having a well-thought-out business plan will help you stay organized and focused on the tasks that need to be completed before opening day. If you're not sure what that looks like, you can always search for templates of business plans online or hire a professional to help you create one.

If drafting from scratch feels daunting, online templates or professional services can offer a structured starting point. Or you can use our free template! (We have a detailed step-by-step guide on how to fill it out too.)

Research your market

Know your customers, and know your competition. Who are you serving, and who are you up against? Doing some solid market research to understand these will guide your service's unique angle.

Choose your financial model

Bearing in mind the type of grocery delivery service you want to start, consider how you’ll make money:

• Subscription models promise steady income, while on-demand services offer flexibility.
• What markups will you add?
• Will you charge a delivery fee? How much?

How much does it cost to start a delivery business?

The cost of starting a delivery business depends on several factors, such as the size and scope of your services, the type of equipment you plan to use, and any fees associated with obtaining the necessary permits or licenses. In general, getting started costs anywhere from $100-$20,000 .

Get your admin set up

There’s a lot of groundwork to lay. The good news is that if you invest the time to create a solid administrative base, you probably won’t have to think about it again:

1. Business structure

Depending on your liability preferences and the tax implications where you live, you can choose between a few different ways to structure your business:

• Sole proprietorship
• Partnership
• Limited liability company (LLC)
• Corporation. 

Each model has its pros and cons, affecting everything from paperwork to how much of your assets are on the line. This is one area where it’s well worth seeking professional advice. Look for a local accountant who specializes in entrepreneurs, or find a local bank or agency that supports small business development — most cities will have one.

2. Legal and financial must-haves

• Tax registration : You never want to get on the wrong side of the tax authorities! Secure your Employer Identification Number (EIN) via the IRS for tax purposes (or whatever the equivalent is in your country).
• Business bank account : Keep your finances tidy with a separate account for your business. Shop around different banks to find one with favorable terms and necessary features, like an easy way to take credit card payments. And talk to friends and trusted advisers about their experiences.
• Insurance : Protect your business with the right mix of general liability, commercial auto, cargo, and workers' compensation insurance, depending on your operation's specifics.
• Licenses and permits : Ensure compliance with local regulations by obtaining the necessary paperwork to legally operate.

Equipment and systems

Start lean with just the essentials — a dependable delivery vehicle, basic moving equipment, and technology like a smartphone and a delivery management system. 

A simple online presence with a domain name and website is enough to get started. You’ll also need an order management system. An online shopping platform like Shopify or Wix is a good place to start — they offer most of the functionalities a new business will need.  Check out our article on the best e-commerce platforms for small business to learn more. 

Finally, don't forget practical items like coolers for fresh deliveries!

Delivery scheduling and delivery management 

Smart delivery scheduling and delivery management could make or break the profitability of your business. Last mile delivery is notoriously difficult and expensive so this can get really complicated, really fast. You need to balance things like driver availability, customer delivery window preferences, traffic, weather, and route density. Pen-and-paper planning works for a lot of things, but not for route planning. 

A good delivery management system should enable you to:

• Offer custom delivery time windows
• Automatically create optimized delivery routes with accurate ETAs
• Send routes directly to driver’s mobile phones
• Track the day’s delivery progress in real time
• Support photo and signature proof of delivery
• Automate sending notifications to your customers, so they know when to expect their deliveries

Check out Routific’s free trial to see how easy it can be with the right tools.

Marketing and client acquisition

• Get visible: Use social media and a straightforward website to connect with your potential customers, and do some basic research on local SEO to boost your online presence. And depending on your target market, don’t underestimate the power of good old-fashioned posters and flyers.
• Referral programs: Word-of-mouth is powerful. Encourage happy customers to spread the word with incentives like discounts, free extras or even exposure for their own businesses. This can help to deepen your community roots.
• Local partnerships: Even if you’re not working directly with a local grocery store, wholesaler, or farmer, think about what other mutually beneficial collaborations you could offer to other local business owners. For example: If you have a focus on fresh, healthy produce, maybe local gyms, trainers, or health practitioners would be interested. If you’re serving seniors, check out community centers and doctor’s offices. Offering low-hassle snacks and lunches? Busy parents would probably love to know. Be as creative as possible in broadening your customer base.

Build your team

Who’s going to be on your team? Even if you’re the only employee to start with, you’ll need an accountant, an internet service provider, a designer, a packaging supplier, produce suppliers, etc. 

As you grow, you’re likely to need contract and then full-time drivers, and possibly a planner/dispatcher. Recruit and train a dedicated team, setting clear expectations and fostering a positive work culture. 

Launch and grow your food delivery business

With everything in place, you're ready to roll out your delivery service. Focus on delivering exceptional experiences, adapting to feedback, and gradually expanding your reach.

Good luck on your journey to creating a standout grocery delivery business. With careful planning, a customer-focused approach, and a commitment to quality and service, you're well on your way to success.

Pros and cons of starting a grocery delivery service 

1. low cost of entry.

Because there is not much that you have to purchase to operate a grocery delivery business it is easy to get started without putting a lot on the line. This allows you to enter or exit the business at your discretion without a lot of upfront concern or investment.

2. High market demand

In the modern world, especially after the pandemic, the need for on-demand delivery services has spiked in both cities and suburbs alike. This gives small businesses a chance to heavily capitalize on the opportunity and quickly gain a large consumer base without a lot of effort.

3. Straightforward business model 

Unlike other businesses, there are not a lot of complexities attached to delivering groceries to households. It is as simple as it gets which means that there is relatively less to learn to get a boatload of loyal customers under your belt within a short period of time. 

Disadvantages

1. high competition .

Given the low cost of entry, there is a great chance of encountering a high number of competitors looking to have a piece of the pie. In such a fiercely competitive atmosphere many business owners get discouraged and bail on the industry altogether.

2. Thin profit margins

Unless you get the products that you deliver from a grocery wholesaler, the profit margins are very thin given the simple nature of the industry. These thin margins really push the patience of most business owners and make the business option unviable for many that enter it. 

3. Heavy workload

To fulfill customer orders you not only need to be very punctual and responsible in your dealing but also have to take care of any aspects that may cause customer dissatisfaction. The job is also physically demanding and requires you to be on top of your physical health to be efficient.

Frequently Asked Questions

Related articles.

Liked this article? See below for more recommended reading!

9 Great Delivery Business Ideas For 2024

9 Best Grocery Delivery Software in 2024

Top Food Delivery Trends And Statistics For 2024

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• Lawn & Garden

How to Start a Lawn Care Business: A Step-by-Step Guide for Budding Entrepreneurs

Self-starters who want to learn how to start a lawn care business can follow these 11 steps to help create a lawn care business sure to grow..

By Amber Guetebier | Updated Mar 19, 2024 5:30 PM

We may earn revenue from the products available on this page and participate in affiliate programs.

Photo: istock.com

When it comes to types of businesses an entrepreneur can start, opting for a lawn care business can be full of benefits. Overall, lawn care business start-up costs are relatively low and the industry has the potential for high revenue; some lawn care businesses can bring in six figures annually. Add to that the perks of independence and spending time outdoors, and starting a lawn care business becomes even more appealing. To offer customers individualized, reliable lawn care, the best lawn care services start with a comprehensive, executable lawn care business plan. Those interested in starting a lawn care business will find the steps listed can help them on their path to a flourishing lawn care business.

Before You Begin…

When entrepreneurs are researching how to start a lawn care business, there are a number of key factors to take into consideration. Before launching a new venture, aspiring business owners will want to consider any existing lawn care businesses in their marketplace, what those businesses have done to be a success, and how a new lawn care business can compete.

In many locations, lawn care isn’t a year-round business, so taking the weather and climate into consideration will help an entrepreneur formulate the right plan. Many lawn care businesses offer winter snow or ice removal in areas with heavy snowfall. Those with milder winters may be able to work nearly year-round if they plan to offer lawn care preparation and seasonal cleanup as part of their services.

Tips for Starting a Lawn Care Business

• Create a well-researched business plan and set a budget.
• Decide on a business structure, such as sole proprietorship or limited liability company (LLC).
• Research required licenses and permits, such as those required for pesticide application.
• Invest in necessary equipment and software.
• Create a targeted marketing plan to create brand awareness and reach a wider client base.
• Recruit and hire employees to help the lawn care business scale.

STEP 1: Write a comprehensive lawn care business plan.

Writing a business plan is a logical first step for any entrepreneur, and it’s no different for a lawn care business. In order to create a robust, actionable business plan for lawn care companies, the owner needs to start off with market research and make decisions about the scope of the lawn care business they want to run. Many lawn care companies begin as a small lawn care business but may scale into a larger operation, so thinking about company structure is important. For example, will this be an LLC or a sole proprietorship? Is the goal to be a solo operation or to eventually become a franchise? A strong lawn care business plan includes a list of the equipment and tools the owner will need from the start, the start-up and operational budget for the business, and a marketing plan that includes outreach to let new customers know that the business is up and running.

STEP 2: Choose a business structure and register your business name.

There are several different structures an entrepreneur can choose for their business, including a sole proprietorship, a partnership, a corporation, an S corporation, or a limited liability company (LLC). For each of these structures, there are different requirements to register with the state or local government. Business structure affects taxes, paperwork requirements, personal liability, and where potential funding comes from. Aspiring entrepreneurs will want to consider their lawn care business structure carefully, as choosing to restructure in the future may come with restrictions and complications. The U.S. Small Business Administration (SBA) website offers business owners information to help them determine which structure is best for their company. Entrepreneurs can also choose to work with a professional to register their business; for example, they may choose to work with one of the best LLC services , such as LegalZoom or Northwest Registered Agent , to register their business as an LLC.

STEP 3: Get the necessary business licenses and permits as required by your state or local government.

Business owners typically need to register their lawn care business name with state and local governments. They’ll also want to consider the adjacent states where the company may conduct business and research whether the business needs to be registered there as well. Generally, if the company is an LLC, corporation, or partnership, the business owner may be required to register in any state where the company will regularly conduct business. Business names do not need to be registered on a federal level, but paying taxes to both state and federal tax agencies is a requirement.

In addition, the business owner will likely need to get a business license , though the specifics will depend on their location. There are a number of different types of business licenses , and new lawn care business owners will want to research what licenses are required in their area. For example, some states may only require a general business license for lawn care companies to operate legally. Others, however, may require lawn care businesses to obtain special pesticide application certification or permits.

STEP 4: Obtain business insurance coverage.

Lawn care companies frequently work with equipment such as riding lawn mowers or rototillers on clients’ property. They may work on drainage and irrigation as well as lawn care and maintenance. Because of this, purchasing the best insurance for lawn care businesses (such as a policy from NEXT Insurance or Thimble ) is a critical investment for any lawn care business. In many cases, a certain amount of insurance coverage is required by law in order for a business to acquire a license and operate legally in the state in which it’s located.

The good news is, the cost of lawn care business insurance is relatively affordable, with the national average at about $45 a month. Having lawn care business insurance can help protect the company in the event of an accident, damage to a client’s property, injuries to a client, and in some cases, stolen or damaged equipment.

STEP 5: Get financing and open a business bank account.

The national average lawn care business start-up cost is $6,900, which includes a business license, taxes, insurance, equipment, and operating supplies. This amount can fluctuate depending on location, existing equipment, and other factors such as number of employees and vehicles. Commercial lawn care companies may need to invest in larger and more powerful equipment, such as one or more of the best riding lawn mowers , rather than basic push mowers, and this can be a larger investment up front. Creating and finalizing a budget, possibly with the help of an accountant, will help a business owner see the profit they need to succeed and help secure the right amount of financing. It’s also essential to have a business bank account to help manage income and outgoing expenses.

STEP 6: Invest in software to help run and organize the business.

With so many moving parts involved in starting a lawn care business, investing in accounting or other business management software can provide a new business owner with the support they need to manage the daily operations of a lawn care business, including scheduling, invoicing, and budget tracking. The best lawn care scheduling software programs (such as Jobber ) can help address the specific needs associated with operating a lawn care business.

STEP 7: Purchase quality lawn care tools and equipment. 

Starting a lawn care business requires a business owner to invest in certain types of equipment, not the least of which is a lawn mower. Purchasing the best lawn mowers will help any new lawn care business operate successfully. If the lawn care company will operate as a commercial business, with clients that could include golf courses, sports stadiums, or parks, the owner may want to consider larger mowing equipment such as a zero-turn or tractor-style riding lawn mower . Riding lawn mowers are a greater initial investment, but they enable the lawn care business to serve more clients in less time. Entrepreneurs will want to keep in mind that some equipment, such as rototillers or skid-steer loaders, can be rented on an as-needed basis until the business grows.

“Investing in quality equipment and tools will allow you to apply [lawn care products] faster and more efficiently while putting less wear and tear on your body,” says Mark Marino, owner of Lawn Phix , a lawn care company based in Bellingham, Massachusetts. “I now primarily use a ride-on spreader/sprayer with a walk-behind fertilizer spreader and two battery backpack sprayers (one for herbicides and one for liquid nutrition). This setup has instantly doubled the number of properties I complete daily…compared to [using] the push spreader and battery backpack sprayer alone. Plus, I’m less tired at the end of the day, and it’s a lot of fun to ride around, too.”

STEP 8: Invest in top-quality lawn care products.

In addition to having quality tools, a new lawn care business will need to have a selection of quality lawn care products, such as fertilizer, weed control, and pest control products. Lawn care businesses can keep these types of products on hand to make it easier to maintain and beautify clients’ yards.

There are several factors for aspiring lawn care business owners to keep in mind while researching the best lawn care products for their company. First, they’ll want to consider safety. There is a lot of value in choosing a company that offers environmentally friendly products, and doing so could give a lawn care company an edge against the competition if other companies in the area aren’t using eco-friendly products. Second, they’ll want to think about the reputation of the company providing the lawn care products they’re considering. Entrepreneurs can research the different brands available, asking local companies what products they recommend and reading reviews on the effectiveness of each type of product.

Lawn care products are a critical component of any lawn care business, so it’s vital that an entrepreneur include them in their budget and shop around to find the best products for their money.

STEP 9: Choose and price the services your lawn care business will offer.

It’s common for many lawn care companies to offer up-front pricing on their website and on flyers or advertisements. By researching the lawn care cost in the area in which the lawn care business will operate, new lawn care companies can remain competitive in their local market. The national average cost for lawn care services is $124, with a range between $48 and $206. Pricing can be dependent on many factors including geographic location, frequency of service, lawn size, and any additional services the lawn care business will offer, such as pesticide application, additional landscaping services, or seasonal cleanups. In areas with heavy snowfall, many lawn care businesses pivot to offer snow removal and holiday lights installation.

STEP 10: Create a marketing plan to build a solid client base.

A marketing plan is an integral part of cultivating and maintaining a client base. Marketing includes everything from lawn care business cards to a dynamic website. It also includes targeted advertising, such as flyers and door hangers, in neighborhoods businesses wish to serve. The use of social media outreach is also important to build brand identity and interact with customers.

Another way for a lawn care business owner to get more clients is to tap into their existing customer base. “Something that’s worked really well for us is simple word-of-mouth advertising,” says Jeremy Yamaguchi, founder of Lawn Love . “We’ve gathered tons of new customers simply through being recommended by satisfied customers. We make it a habit to always ask our satisfied customers to recommend us after completing a job for them, and we also run lots of promotions where we will offer discounts to people who recommend and get others to do business with us. Lawn care is one of those services that is inherently personable and connection-focused, which is why this has always been an effective approach for us.”

Additionally, entrepreneurs will want to consider purchasing vehicle wraps or magnets with their business name, logo, and contact information and place them on their business vehicles. This helps the business become more visible in the community, which can attract more customers. Finally, business owners can ask their current customers if they can place a yard sign with their business info on the customer’s property—this way, passersby can see the business’s contact information while also admiring their handiwork.

STEP 11: Hire employees to help you run your lawn care business.

While a small lawn care business may start out with a single owner and operator, the workload will grow alongside the client base. In order to effectively scale a business, many lawn care companies will reach a point at which they will need to hire employees. Investigating the average wage and benefits will be a big step in the process for the business owner. Offering employees a fair wage and good benefits will help with employee retention, and it can help ensure trust and loyalty between employer and employee.

“I have seen wages increase steadily over the past 10 years. For instance, an inexperienced crew member started at about $11 per hour in 2014 compared to $18 per hour today,” says Jennifer Nichols, president of GreenWeaver Landscapes in Lenni, Pennsylvania. “Along with wage increases, benefits have grown over the years, and we now offer health and dental insurance, a retirement plan, and liberal vacation and education benefits for all new hires…Landscaping is a skilled profession and our employees deserve a living wage, just like all the other trades. I believe the public is beginning to understand and accept this. This simply means that wages will most likely continue to increase in the near future, and they should.”

When learning the ins and outs of how to start a lawn care business, from writing an initial business plan and securing funding to marketing and hiring employees, entrepreneurs can create a thriving business that helps beautify the neighborhood while earning a living wage. By dedicating the time up front to create a well-researched business plan, the grass really will grow greener.

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