Suggestions
1. This portion of your plan applies to your product. If you are a service company, some sections, such as facilities, control systems, labor force, etc., apply to you, but not all.
2. Investors are looking for:
the age and condition of your facilities and equipment.
the rationale for the location of your facilities.
labor costs.
potential labor issues.
3. Investors prefer as little overhead and inventory as possible. Money tied into physical plant or inventory isn't making money. But they will invest in equipment and facilities that make money.
4. Control systems are key to holding down costs. Be thorough and clear as to your control systems and why you chose those systems.
Resources Needed to Write
1. Description of your facilities.
2. Data on wage rates, taxes, etc., for the area and comparative data for other areas to show how effective your decisions were.
3. Maps showing locations of key markets in respect to your facilities' locations.
4. Labor contract if your workforce is unionized.
5. Any demographic study of the local labor force.
To help you plan for any diversity issues in your workforce.
If you become a federal contractor or are seeking federal funds for your company, you may have to show how the diversity of your workforce matches the local economy.
Production
1. What is your production process?
Do you produce, or is the product produced for you?
What are your production requirements in terms of:
a. Labor.
b. Equipment.
c. Facilities.
d. Materials.
e. Transportation/shipping.
Consider offering a flow chart.
2. How will production levels be determined?
Explain your production forecasting.
Your purchasing control processes.
Geographic Location
1. Where will your plant be located?
Explain the advantages and disadvantages in terms of labor costs, proximity, taxes,
utilities, etc.
Stress the advantages key to your business.
Facilities
1. What are your requirements?
Make or Buy Policy
1. What will you produce, and what will you buy? Why?
2. Describe your suppliers or subcontractors here.
What are their terms?
What percentage of their business do your orders represent?
Control systems
1. What is your quality control process for quality checking suppliers' deliveries?
2. What is your inventory philosophy?
How fast can your suppliers deliver?
How much inventory will you carry, and what statistical tools will you use to manage it?
3. What is your quality control process?
For help in completing this section, check SBM:EB pp. 412-416.
Labor Force
1. What is the state of the labor pool?
Training
2. What kinds of training will you provide?
For help in completing this section, check SBM:EB pp. 380-384.
3. Training costs/budget.
Staffing Plan
1. Current employees.
Number, level of experience, education, and training.
Compensation and benefit plan.
Labor relations issues.
What union representation?
If nonunion, union avoidance strategy.
2. Proposed hires.
When will you add personnel?
Identify positions in order of priority.
Where will you find these employees--local, regional, etc.?
Training programs.
Compensation and benefit plan.
Labor relations issues.
EEOC issues.
a. Is diversity likely to be an issue?
b. Does ADA impact your company? If so, how are you ensuring compliance?