Operating Plan Outlining Day-to-Day Operations

Benefits of an Operating Plan The Operating Plan (also known as the Business Plan, requires the business to: analyze and research how to produce goods and services most efficiently  maximized profits analyze and research how to get goods and services to the customers most efficiently  maximized profits effectively time manage each task required to keep the business running  maximized profits

Purchasing Section Key Questions –What supplies do you need? –Who are the best suppliers for your needs? Process –Use the Internet or local phone book to research suppliers –Look for best quality at a price you can afford

Production Section Key Question –How much time will it take to complete a sale from order receipt to delivery? Process –Talk to others in your business for time estimates –Provide your product or service to family and time how long it takes to complete

Sales and Marketing Section Key Question –How much time will you spend on sales and marketing? Process –“People don’t know what they want; they only want what they know” –Be sure to allow enough time to produce quality advertising

Accounting Section Key Questions –What system will you use to keep accurate financial records? –How much time will you spend on accounting tasks? Process –Investigate what is involved in using a paper accounting system verses a computerized system –Find out how much it costs to purchase paper forms verses the cost of a computer program

Distribution Section Key Questions –How much time will it take to deliver products to the customer? –How will you deliver the products? Process –Determine what mode of transportation you will use to reach clients –Obtain your parents approval if you plan to use a family car

Sample Operating Plan See page 90 in The Teen Entrepreneur. Link to class website