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Operational Business Planning

Typically the second section written in any business plan is the operational or day-to-day activities plan. In essence, the previous section (business description) outlined what the business is, what its goals are and generally how they will be achieved. The operational business plan explains how the company will operate on a day to day basis.

Most operational plans consist of two subsections, production operations and marketing operations. Companies that provide independent services sometimes include a section entitled “services” but anyone who has taken an operations management course knows that production covers the providing of services as well.


The market section is composed of two sub sections: marketing and advertising. Though these two topics are related, advertising being a major component of marketing, they are given independent sections.

Marketing includes a wide variety of activities, all centered on the non-production phases of product and service. It is summarize by four words that all marketing students should be aware of: product, price, placement, and promotion. Business plan authors may find it helpful to keep that same format in the preparation of their marketing plan.

Advertising is the promotions aspect of marketing. In the Advertising section of a business plan, the author will typically explain what venues of advertising he intends to utilize to build company and product recognition. This section can be quite complex, due to the wide variety of advertising possibilities out there.


The production section covers the actual manufacturing of company products or the performance of company services. This section goes into significant details regarding the equipment, software, and facilities necessary for the company to operate, as well as the production material requirements. Mentions of supply negotiations and agreements will commonly be found in this section as well.

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Like many aspects of public presentations, half the battle in business plan presentation is keeping your audience interested. Too often, business plans are written without any regard to format or style, and this is where many of them fail by losing their audience with difficult to read materials.

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