Free Sample Business Plan - Operation Section of The Internet Company

OPERATIONS Section of the Business Plan
(The Internet Company)


The Internet Company will register its business name, under the Corporations' Act, as a limited company in January of 200X. Other items of interest under the operations section include:

  • Direct Materials
  • Direct Labor
  • Operational Porcess
  • Capital Equipment Required
  • Corporate Location


Direct Materials:
The only direct material required by the company is the business training information itself. To date, the company has developed approximately 700 pages of business training information. By February, 200X we estimate the database will be complete and ready for distribution on the Internet.

Direct Labor:
As indicated under the Management & Staffing section, an individual has been hired to assist management in developing the direct materials (information) into the company's Internet Database file. In essence, the only input is direct labor which is required in order to further develop the database of business training information. Moreover, the administrative staff member is currently assisting management in researching and expanding the database of information.

When the database is complete, the duties of management and staff will change dramatically as indicated under the Management and Human Resource Development section. Labor and employer's mandatory costs, however, will remain constant.

Operational Processes:
As mentioned earlier, approximately 700 pages of the entrepreneurship training module has been created which details training and general information in areas such as Strategic Planning, Business Management, Human Resource Development, Business Operations, Marketing & Promotions, Accounting, Financial Forecasting and so on. This information has been organized in a manner allowing for easy and fast Internet integration. The Process, involved in providing the training information over the Internet, is rather simple. The steps are presented below;

1.  -  Place information on Internet (February, 200X)

  • The information is developed by management and staff
  • When the database is complete, the information must be reformatted and integrated into an Internet format.
  • Links (or Hypertext links) will be created, allowing users to easily obtain desired information with a click of their mouse.
  • Upon integrating the information, management will examine all links to ensure proper integrity.

2.  -  Develop Internet Programs (Beginning February 200X)

  • The Internet Specialist will design software programs that will track each of our web site users and their respective demographics. The users' demographics will eventually be used to encourage sponsors to advertise on our Web site.

3.   -  Update information to our Database (on-going process)

  • Users of our web site are encouraged to provide feedback and suggest additional topics to be added to the existing web page. Also, the company will continue to provide new and exciting information. For example, a computer course will be available on-line to interested parties. The process required in attaching any new information to the web page is extremely easy. (outlined in number 1 above).

The process is that simple and what's great is that the company can update the Internet file at anytime and anywhere in the world.

Capital Equipment:
The company requires minimum capital equipment since the production process involves information. Below lists the capital equipment, after tax cost of the equipment, and the suppliers of each piece of equipment required by the company. This budget has been exacted from the financial budgets as of February, 200X.


Office Equipment & Furniture Budget
Required as of February 200X
Cost Supplier
One Color Notebook Computers $ 4,801 Computer Island
High Resolution Image Scanner $ 1,600 Computer Island
Hewlett Packard Laser Printer $ 900 Computer Island
Office Furniture & Accessories $ 950 Carter Supplies
Fax Machine $ 506 Carter Supplies
Operational System's Software $ 1,292 Computer Island
Total Capital Equipment $10,049


The above capital equipment is essential to carry out operations and will be purchased in February of 200X. Payment of the equipment will be made in March of 200X. An additional notebook computer will be purchased in July of 200X and payment of $4,801 is scheduled for August.

Computer Island Inc. will be our main supplier of computer equipment and system's software. This firm has been chosen based on their quality brand names, competitive prices, and after sale service. We feel that this supplier will greatly compliment our business and provide additional corporate balance. Please refer to the quotation in the appendices for further details on the above computer hardware and software costs.

Financial treatment of the above capital equipment is provided under the financial section entitled "Notes to the Financial Statements".


The Internet Company's location is not a major concern due to the nature of the business and the industry. Moreover, we are not required to be close to our customers (users of the information). Users will, in most cases, retrieve our business training information on their home computer. Also, we are not required to personally see users in order for them to access our web site. What we are required to do, however, is inform them of our Web Site and persuade them to frequently visit. These issues were addressed in the Promotions Section of the business plan.

In addition, we are not required to be located close to our corporate sponsors. Our task, however is to inform them of this, somewhat, unique means of promoting their products and services.

The company plans to locate its office in Wild Stone Creek, Mississippi in February of 200X. The rental expense is estimated at $500 per month; - total rent expense of $ 5,500 for 200X. Since the business training information is still under construction, there is no need for the company to occupy office space prior to February of 200X. Arrangements such as specific location, corporate address, telephone number, fax number, etc will be made in late January.

This concludes the operations section of the business plan. Due to the simplicity of the proposed business, the Human Resource Management section and the Operations sections require limited details.



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