Physical Resources

The Operations Plan This part of your business plan will help you achieve Assessment Objectives AO2 and AO3. It is essential that all your work follows from your marketing plan and that your costings are accurately researched, because they will be used in the financial plan. To achieve the highest mark bands all the sections must form a coherent plan.

Consider All Possibilities - Starter How many physical resources can you list that you will need to start a business? Success Criteria: 11 – Poor planning – you’re fired 13 – Almost planned – keep working on that plan! 15 – Perfect planning – you’re hired

Stages of Production Explain the main stages of production This section should explain how your product or service is made. What you include will depend on the nature of your business but should include a detailed description:- The place – where it is made or sold and where you are buying it from. Equipment Raw materials /inventory? NB If you are providing a service and don’t make anything you do not need to do this slide.

The Physical Resources At the heart of an operations plan are the physical resources required to establish your venture. While you are all writing plans for different businesses there are many common resources. You need to devise a detailed list of all the resources required, which are properly costed and supported by research. Include the list in the business plan and place your research in another appendix. You only need to include in your list and research the costs that are relevant to your business. NB: These are physical resources and not costs like advertising.

Physical Resources For general help and advice on this topic you can use the following links:- business/start-up-costs/q-a-calculating-start-up-costs business/start-up-costs/q-a-calculating-start-up-costs stcalc/index.asp BPLANS If you are looking for specific help on an industry try looking for an industry guide at:

Premises All businesses need premises whether it is a shop to sell products from; a factory to manufacture products in; a warehouse to store goods in and/or an office to run it from. You will rent/lease. Search commercial estate agents on the internet and find appropriate premises. Print off the details. You should explain the advantages of your chosen method. You must: Point – state the advantage/disadvantage Explain it Effect - explain the effect it will have on the business. You could use the same method for several of the resources but do not need to explain the disadvantages Add the cost to your resources list.

Additional Premises Costs There are a variety of extra costs associated with premises. Insurance - you could get an online quote. Gas/electrical – look at the companies sites SAMPLE BUSINESS PLANS Business rates – consult the local council or you could use the tool at If you work from home you still have to pay see: from-home Water rates – consult the local water company.

Office Costs What items do you think you will need in your office? Computer(s) and all extras Telephone system Desks Filing Cabinets Stationary Safe? First Aid box GIVE EXAMPLES

Equipment If you are making something or providing a service, the equipment required while depend on the type of business you are setting up. Describe the equipment you will need in you plan and list the costs on your appendix.

Vehicle Does your business require a vehicle? If so will it need a car(s), van(s) or other vehicles. You also need to find the associated costs of buying a vehicle: Insurance Road tax MOT Service & maintenance Garage

Stock Starter: Study the following website: How many reasons can you find for using them as a supplier? Whatever the type of business stock is a very important resource. Research and explain from where you are going to buy your stock in your business plan. State why it is important and why you have chosen the supplier. Don’t forget to Point Explain Effect Use your sales forecast to estimate how much stock you will need and what your stock will cost.

Stock Control Starter Label the following: Stock Level Time Month 1 Month 2 Month 3 Maximum Stock level Re-order Level Minimum Stock level Buffer Stock Lead Time

Stock Control Explain what is meant by stock control. Explain which method of controlling stock you will use and why. Choose from: Fixed order stock level Economic order quantity Just in Time You could but do not have to draw and explain a stock control diagram where appropriate. At the very least, you should explain the advantages of your chosen method. You must: Point – state the advantage/disadvantage Explain it Effect - explain the effect it will have on the business. You do not need to explain the disadvantages.

Quality Starter Watch the following video clip and evaluate the method of quality control being used at this 1970s Trabant Car factory in East Germany. studies/comments/quality-control-and-assurance- the-trabant-way studies/comments/quality-control-and-assurance- the-trabant-way

Quality - Manufacturing Explain why quality is important for your business. Try to apply this directly to your business. If you are manufacturing something explain the method of maintaining quality you will use. You can choose from:- Quality Control Quality Assurance Total Quality Management Explain the reasons why. You must explain the advantages in detail. To do this:- Point -state the advantage Explain what it means by applying it directly to your business. Effect - explain what the effects are on your business Link your explanation together by using connectives. NB: You do not need to explain any disadvantages nor compare it the methods you haven’t chosen.

Quality - Service Explain why quality is important for your business. Try to apply this directly to your business. If you are providing a service explain the method of maintaining quality you will use. You can choose from:- Comments cards Mystery visitors Online reviews e.g Trip Advisor Explain what it means by applying it directly to your business. Effect - explain what the effects are on your business Link your explanation together by using connectives. NB: You do not need to explain any disadvantages nor compare it the methods you haven’t chosen.

Opening Hours Describe your opening hours. Explain why you have chosen your opening hours, with reference to your research; your customers and competitors. There is an opportunity to add extra research here. Copy and paste opening times of your competitors from the internet. You can put them as an appendix or straight into your work. You may choose similar hours or they could be different, it doesn’t matter as long as you can justify them.

Human Resources Describe the main roles of your staff. Outline the main functions and skills required. Now look back at your introduction, make any changes necessary! Starter – POST IT NOTE What is the average salary of a man in UK? £31,825 What is the average salary of a woman in UK? £24,545 What is the average salary of a worker with less than 1 years experience? £19,913 Explain how much the staff will cost and why you chose these rates of pay Official-figures-national-average-UK-salaries-400- occupations.html Official-figures-national-average-UK-salaries-400- occupations.html

Human Resources - Training Describe the different methods of training required by the staff. You could choose from: Starter: studies/comments/on-the-job-training-the-come-fly-with-me- approach/ studies/comments/on-the-job-training-the-come-fly-with-me- approach/ Induction On the Job Off the Job There may be specific training or qualification you need depending on your business. Similarly you may use more than one method. You should explain the advantages of your chosen method. You must: Point – state the advantage/disadvantage Explain it Effect - explain the effect it will have on the business. You do not need to explain the disadvantages