The operations plan explains how the business will run each day: where it is, how the space is laid out, what equipment it uses, who supplies it, what the daily routine looks like, how stock is controlled, and which permits it needs to operate. It shows a reader that you have thought through the work, not just the idea, and it gives you a routine to follow from day one.
Location and layout
Describe the space: address with barangay, size in square metres, whether you rent or own it, and why this spot suits your target market. Add a simple floor plan in the appendix showing where customers enter, wait and pay, and where you store and prepare goods.
Check zoning before you sign a lease. The city's zoning office decides whether your business type is allowed at that address. See zoning clearance. If you will run the business from home, read the home-based business guide first.
Equipment, suppliers and stock
List the main equipment with the supplier and the quoted price as ₱____ (your figure), and note how long each item should last. For supplies and stock, name at least two suppliers for your key items so one late delivery does not close you for the day.
Explain how you will control stock: how often you count it, how you record what comes in and goes out, and how you handle items that expire. A simple notebook or spreadsheet is fine at the start. The point is that you will notice losses and slow-moving items early.
Worked example: a daily routine for a small coffee shop
Example: a small coffee shop near offices in Makati. This illustration shows how to lay out a day. Times and tasks are placeholders for your own.
- 6:00am: open and prepTurn on and clean the espresso machine and grinder. Check milk and pastry delivery against the order. Record opening cash.
- 7:00am to 10:00am: morning rushTwo people on shift: one takes orders and payment, one makes drinks. Pastries pre-plated to keep the line moving.
- 10:00am to 2:00pm: middayOne person restocks cups and syrups, wipes tables and logs any wasted milk or pastries.
- 2:00pm to 6:00pm: afternoonLower-traffic hours. Weekly deep cleaning on a set day. Owner does the supplier orders for the next day.
- 7:00pm: closeCount cash against sales records, issue the day's summary, record stock used, clean machines, lock up.
Permits and rules you must follow while operating
Your operations plan should list the permits the business needs to keep running and who is responsible for renewing them. Most businesses need a barangay clearance and a mayor's permit, renewed every year. Food and drink businesses should ask the city health office about a sanitary permit and health certificates for food handlers. Ask the fire station about the fire safety inspection certificate.
For BIR, plan who keeps the books of accounts, who issues invoices, and who files the returns on time. Put the dates in the compliance calendar.
Common mistakes
- Describing the product in detail but not how it gets made or delivered.
- Only one supplier for a key item.
- No plan for who opens if the owner is sick.
- Signing a lease before checking zoning and building rules.
- No stock records, so losses go unnoticed for months.
- Forgetting permit renewals and BIR filing in the routine.
Questions a lender may ask about operations
Expect questions like: What happens if your main supplier raises prices? How many customers can you serve in your busiest hour? What is your backup if the power goes out? Who handles cash? Answer them briefly in the plan, and you will have fewer surprises in the meeting.
Operations plan checklist
- Describe the location, size and lease terms
- Check zoning before signing the lease
- Draw a simple floor plan for the appendix
- List equipment with supplier and quoted price
- Name two suppliers for each key item
- Write the daily routine from opening to closing
- Set up a simple stock record
- List permits and who renews them
Questions people ask
- How detailed should the operations plan be?
- Detailed enough that someone else could open the business for a day using it. For a micro business, two to four pages is usually enough.
- Should I include a daily schedule?
- Yes. A simple schedule shows how many people you need at each time of day, which also supports your staffing costs in the financial plan.
- What permits go in the operations plan?
- List every permit and registration the business needs to keep operating, when each must be renewed, and who handles it. The permit path tool can help you find the ones for your business type.
- Do I need to describe my suppliers?
- Yes, at least by type, location and what they supply. Naming backups shows you have planned for delays.