The operations of your business are the tactics and processes you implement to run your business.
Operations in a startup begin with the composition of a business plan. A new venture without a business plan is like a car without an engine; it exists but cannot get anywhere. In fact, researching and drafting the new venture’s business plan is probably the most important and necessary business practice you will ever undertake. Business plans are usually written to obtain financing for a new venture. However, the business document and planning process provides a much more important function. This document will be your road map for getting your venture started. The findings of your research contained in your business plan can tell you from the beginning with pretty good certainty if your new business has a real chance of being successful financially and sustainable in the long run.
Part V of the written business plan should include the following:
1. Please define your revenue streams (sales forecast) including pricing structure, costs, margins and expenses. Explain the logic behind your reasoning.
2. How much money is required to get your business started and generating revenue? (identify necessary capital requirements).
3. Break-even point for your business.
4. What are your potential funding sources? How will you spend the loan money?
5. How will the loans be secured?