This section of the business plan is a step-by-step explanation of the actual manufacturing process for your product.  While a technical explanation for each step is not necessary, it would be helpful to include a process flow diagram or a product flow chart of the production process.  This will help the reader visualize the process.

In this section you should explain your processes of production, along with all other relevant considerations involved in your production process.  You might want to add separate sections such as sourcing to discuss pre-production acquisition of raw materials, or operations to describe the way the production process fits into the overall business flow.  However, you should attempt to satisfy the reader' s curiosity about how your business actually makes products.

Do not be too technical in your explanation if it is not necessary for the reader to get a grasp on how your product is made.  For example, if you are manufacturing pharmaceuticals, you don' t need to explain the chemical reactions involved in each stage of the process.  However, you might need to describe the mixing and heating processes involved so the reader can get the full impact of the machinery and personnel, size and scope of your operation.

Some of the other issues to consider or address in this section include:

>  Safety features necessary in the production process.
>  Environmental concerns in the production process.
>  The resources necessary for each stage of the process.
>  The way the resources flow during the process.
>  Any special needs for security during the process.
>  The time involved in manufacturing for each stage.
>  The maximum production capacities and the efficient operating range.
>  The movement and storage of unfinished product during the process.

When describing each step of the manufacturing process, consider the following:

>  If machinery obsolescence is an issue in your business, you should mention it as an issue that will affect capital expenditures.

>  If you are using hazardous material in the production process, indicate how you will manage and dispose of it.

>  If special conditions need to be maintained during the production process (sanitizing requirements, temperature control, etc.) note this in your description.

>  If special skills are required to operate your equipment, note the availability of a qualified labor pool in your area.

If your business does not require a production process, you could either skip this section or describe your operations process.