Business Plan: Venture & Production
Class 12 CBSE Entrepreneurship — Unit 2: Entrepreneurial Planning
Introductory Profile / General Introduction
This is the title or cover page, providing a brief summary of the business plan.
Description of Venture / Business Venture
This section starts with the 'mission statement' describing the enterprise's size, scope, and nature.
This section helps the entrepreneur assess feasibility and evaluate the idea, potentially saving time and cost later.
Key Questions to Consider
Production Plan
“The planning of industrial operations involves four considerations, namely, what work shall be done, how the work shall be done, and lastly, when and by whom the work shall be done.”— Kimball and Kimball Jr.
Production is the most important activity where raw material is transformed into finished product.
“The entrepreneur, before sending his foreman to the factory, should definitely picturise ahead every step in the production process.”— Alford and Beathy
A production plan helps understand:
- 1)Production schedule and/or budget
- 2)Machinery, equipment requirement
- 3)Manufacturing method and process involved
- 4)Plant layout
- 5)Time, motion and work study
- 6)Manpower requirement
- 7)Inventory requirement
For Retail / Service ventures:
- From whom will merchandise be purchased?
- How will inventory control operate?
- What are the storage needs?
- How do goods flow to the customer?
- What are the steps in the transaction process?
- What technology requirements exist?
1. Village farmers (Raw Material: milk) →
2. Collection at Village Co-operative Societies →
3. Transport in refrigerated trucks (Place Utility) →
4. Processing at Amul Plant (Production: pasteurisation, separation, churning) →
5. Packaging in Amul Butter packs →
6. Cold Storage →
7. Distribution via Amul's network to 10 lakh+ retail outlets →
8. Consumer purchase.
This entire chain — from cow to customer — is what a production plan documents step by step. Every link is planned: source of milk (raw material plan), collection logistics (transport plan), pasteurisation temperature (quality plan), packaging material (inventory plan), and cold storage capacity (infrastructure plan).
Operational Plan
“Operational plan is a system achieving a smooth and coordinated flow of work within the factory, planning and controlling productive operations so the final product is completed according to plans.”— Wright
Plan Your Work
Production Plan
Work Your Plan
Operational Plan
The operational plan is a blueprint prepared in advance of actual operations:
- Ensuring orderly flow of materials from raw state to finished products
- Facilitating continuous production, lesser work-in-progress, and minimization of wastage
- Co-ordinating work of engineering, purchasing, production, selling, and inventory management
- Describing flow of goods/services from production to consumers
- Introducing a proper quality control system
- Undertaking best and most economic production policies and methods
This part details chronological steps to complete a business transaction efficiently and profitably. The operational plan is affected by: (a) Nature of the venture, (b) Type of product/service, (c) Scale of operation, (d) Technology involved.
Objectives — What the Operational Plan Delivers
Quantity
How much to produce
Quality
At what standard
Time
When to complete
Place
Where to deliver
Cost
At what expense
Once Amul decides what to produce (butter, cheese, milk powder — the production plan), the operational plan determines how to produce it: Routing — milk is collected at village societies and routed to the nearest chilling centre; Scheduling — milk arrives by 6 AM, pasteurisation by 8 AM, packaging by 12 PM, dispatch by 3 PM; Dispatching — production managers issue daily orders for which products to make and in what quantity; Follow-Up — quality reports are reviewed daily and corrective actions issued if any batch fails; Inspection — every tanker is tested for fat content and adulteration;Shipping— packed products move through Amul's cold chain to 10 lakh+ retailers. This systematic flow is what an operational plan documents.
Organisational Plan
The organisational plan describes the proposed venture's form of ownership, defining who controls what, how decisions are made, and how the team is structured.
Business Categories
Manufacturing
Makes a tangible product.
Wholesale
Buys in bulk from manufacturers, sells in smaller lots to retailers.
Retail
Sells directly to the final consumer.
Service
Sells intangibles like time or expertise.
Each business type differs significantly in commencement procedures, legal constraints, financial requirements, accounting methods, marketing strategies, and risk/liability. Entrepreneurs can choose from: Sole proprietorship, Partnership, Joint Hindu Family, Cooperative, or Corporation — each with implications on taxes, liability, continuity, financing, and ownership.
What the Organisational Plan Describes
Formal vs Informal Organisation
Formal Organisation
Specifying needed skills and roles — clearly defined hierarchy, responsibilities, and reporting structures.
Informal Organisation (Culture)
Representing attitudes, behaviours, dress, communication styles — the unwritten culture that shapes how people actually work together.
Key Questions the Organisational Plan Answers
Key Takeaways
Key Takeaways
- The Introductory Profile is the cover page, summarising entrepreneur bio-data, industry profile, legal constitution, and product details including USP.
- The Description of Venture starts with a mission statement and helps the entrepreneur assess feasibility by evaluating site, raw material, labour, utilities, pollution control, transport, machinery, and production process.
- For trading or service firms, the production section may be eliminated; for partial manufacturing, subcontractor details must be specified; for complete manufacturing, plant layout, machine list, suppliers, and costs are required.
- The operational plan ensures "work your plan" — coordinating flow of materials, machines, and labour through Routing, Scheduling, Dispatching, Follow-Up, Inspection, and Shipping.
- The organisational plan describes the chosen legal structure, covering form of ownership, authority lines, member roles, conflict resolution, and voting rights.
- A production plan helps plan work: schedule, machinery, manufacturing method, plant layout, manpower, and inventory.
- Retail and service ventures must separately address merchandise sourcing, inventory control, storage, customer delivery flow, transaction steps, and technology requirements.
- The operational plan is affected by nature of venture, product type, scale of operation, and technology involved.