In the event of the company launching a new product or service, this section of the Business Plan will set out the plans to introduce the proposal product or service. The information to be included is:
a) Location of business - Provide a brief description of the site chosen for locating the business along with factors like material availability, labor force, nearness to distribution channels and customers, transportation, legal issues and costs.
b) Equipment and space - Detailed information on building, land or space that is already available or to be acquired or purchased should be mentioned here. It should also be clearly stated whether proposed constructions, property acquisition or expansions are in line with cost factors and long-term growth plans of the company. Estimates should also be provided for future requirements to handle growth in production based on sales projections and profitability.
c) Production - Describe the processes that you are putting in place to develop or produce your product or service. Details should include production methodology, quality procedures, production and inventory control, raw material purchase and control, supply chain, production costs and variable costs. Investors will specifically be interested to know how efficient the production processes are and whether utilization and demand is met by these processes.
d) Labor and Manpower - This section talks about the company's workforce and labor, excluding the executive management or the executive board. Sourcing of labor in terms of quality and quantity should be justified and in alignment with the company's production capabilities, turnover & profitability and long-term growth. Rules, regulations and policies governing workforce should be clearly spelt out.
Executive Management and Human Resources Plan
This section is the key to balancing your Business Plan with the right human touch. The talent and expertise of the management team is extremely important, especially if the company is looking for financial lending or external investments. Other details that feature in this section are human resources capabilities, the strength of workforce the company intends to hire and estimated costs. It would be worthwhile to include the company's HR philosophy and strategy with a view to establishing long-term benefits. External investors will be keen to know how payroll expenditure and administrative costs will be handled.
a) Organizational structure - An organizational structure is very important. Even if the complete hiring process is not complete, an outline of intended recruitment of managerial and non-managerial force that will comprise the bulk of the workforce has to be made. Detailed information of the roles and responsibilities of key personnel will highlight how you intend to project each member's skills and capabilities and help them function as a team complementing each other to fuel the growth of the company.
b) Management Team - Each member's profile should be mentioned in detail here. Biographies of management team are generally included to highlight expertise and experience in the industry, career accomplishments and role handling which are essential to create confidence among investors. The roles and responsibilities of each member and how this will create value add to the company's growth and profitability in areas of production, finance, marketing, operations & management should be highlighted.
c) Compensation - The compensation package of the management team (salaries, incentives, bonuses, stock options, perks and entitlements etc.) have to be indicated. This will directly or indirectly affect the financial projections of the company both short-term and long-term and therefore it is necessary to make provision and budgetary requirements.
d) Company Executive Board - This section features the executive board or the governing council members who are drawn from various industry segments for their knowledge, management skills and their ability to take quick and decisive action in the event of economic downfalls.