Why do you need an Operations Section in your Business Plan?

A standard business plan is divided into two sections: the strategic section and the operational section. The strategic section provides information about mission statement, value proposition, target markets, and competitive positioning. But the operational section is just as important as it deals with the process of turning resource inputs into useful outputs. This actually refers to the operation you need to do in order to turn raw materials into a finite product which you can afterwards sell.

Click here to download your business plan template <==== In this section of the business plan you need to write the necessary details as to make investors understand what type of business you want to build. For example, this will make them know for sure if your companyΓÇÖs profile is that of a business-to-consumer or of a business-to-business. It will also provide the information concerning the number of products or services you intend to create. We will have to state whether your sales platform will develop only in the online environment or in the direct market as well. You also have to mention which is the type of business you are planning on creating, whether it provides goods for sale or it distributes goods for others. Another important detail that you have to state in the operations section of your business plan is whether you are planning into developing a small, medium-sized or a large company. All this data relates to some very important issues concerning the development of your business, such as location, operating facilities, purchasing procedures, inventory management, quality control, customer service, organizational structure, and personnel. These data should reflect in the operational section of your business plan in two ways:

  • Related to the everyday processes, that is the short-term processes of development. This refers to the operations you have to perform in order to turn raw materials into products, to the way in which you can store them and, finally, to the way in which you can deliver them to customers. It also has to deal with the processes behind the growing plan of your business. This is where you should identify and state the processes you want to use in order to enlarge your business by attracting new clients, to define new areas of customer interest and to update the serviceΓÇÖs features. Your products can and should be continuously updated and this is where you should state the strategies you would like to use in order to reach this goal of competition.
  • Related to the business milestones, that is the long-time processes of development. This section should be presented as a chart and it should bring information about the way in which your team will finish providing the long-term duties. Any company has a development vision which can be achieved in a certain period of time. This period has to be divided into achievable milestones that can provide investors a sense of security. If milestones are not to be accomplished in the stated period of time, investors can use their exit strategies in order to prevent loosing their money. The milestone section should include fixed dates for specific purposes.

Click here to download your business plan template <==== As investors do not only look for great business ideas, but also for business that can easily become a part of reality, bringing revenues, you should make sure that all the data you provide in the operation sector of your business plan refers to a credible vision of the market and of the time frame needed in order to achieve the wanted level of growth.


  1. Milestones are the promises you take in front of your staff and of investors that you will do your best in order to respect a schedule. Investors need milestones because they are the elements on which your business contract stands. If you do not respect your imposed milestones, investors can withdraw from the business and they can apply all the different exit strategies you have discussed at the beginning of your collaboration.

  2. what is the importance of milestones in a business plan?

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