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D. Operations
In this section, you need to describe the resources required to
run your business by answering the following questions:
1. Facilities & Capital Equipment
- Where are or will the facilities be located?
- Describe the size of the facilities.
- How long will the facilities be adequate, based upon the expected
growth of the business?
- Are or will the facilities be owned or leased? If leased, describe
terms of the lease including rent per square foot, date of lease
expiration, renewal options, etc. Attach agreement, if any.
- What type of equipment will your business need?
- Will the equipment be owned or leased? If owned, how much will
it cost and where will you get it? If leased, describe terms of
the lease and attach agreement, if any.
2. Production & Distribution
- Who will be your suppliers? Attach agreements with suppliers,
if any.
- What is to be manufactured in-house and what will be purchased?
- Describe the manufacturing process if produced in house.
- How will your product or service sold and distributed? Will
it be sold directly to user, or through wholesaler, distributor,
sales representative, etc.? Have you identified the manufacturers,
wholesalers, and/or retailers that will be utilized? You should
demonstrate that you have a clear grasp of what it actually takes
to sell your product or service.
3. Human Resource
- Will you need to hire employees? If so, how many do you need
to hire?
- Discuss the backgrounds of key personnel, their qualifications
and planned duties.
- Discuss key management vacancies that the company plans to
fill in the near future.
- Describe employees' compensation package and incentive program.
- Will you need to train employees? Describe the training program,
if any.
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