2.4 Operations
Explanation
Describe the material assets of your enterprise including buildings, equipment, inventories, proprietary technologies, etc. If your plan is for a start-up business you will have little to describe. If your plan is for an on-going business your description should be consistent with the information provided in your historical balance sheet.
Describe what functions of your business are considered appropriate for performing in-house and those that could be or are done by sub-contractors.
Factors to consider:
Buildings
Office equipment
Production equipment
Inventories
Proprietary technologies
Company vehicles
Sample from CitiLoc, Inc.
We do not currently have any facilities. However, we will quickly have to lease an estimated 6,000 square feet of space for our operation. We are aware of two new commercial office space areas where we can get a three year lease of that much space for about seventy five cents a square foot per month (about $4,500 per month). There will be a one-time finish out cost of about $10,000.
In addition to the space we will need desks, office equipment, communication lines and equipment, computers and software. This will require a one time, up front expense of about $80,000.
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