You must explain how you will manufacture the product or perform the service. This means answering a number of essential questions about site selection, capacity, manufacturing processes, and suppliers. The reader will want to know how much of the process you will do yourself and how much will be contracted out to others. If your product is complex, you may need to describe key processes, the impact that technology may have on those processes or other investment needs to support production. You may also want to address how you will package and ship your product and what level of inventory you will need to carry in order to meet customer needs and expectations.Your discussion of manufacturing and operations should also cover manufacturing costs including any plans you have to reduce or control manufacturing costs.At some point, the backers will ask to see a detailed manufacturing cost breakdown. Although this information need not be included in the business plan, it should be available.
Thursday 31 March 2011
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