Questions to consider when completing the operations exhibits of your business plan:
Manufacturing is a "form of production by which raw and semifinished materials are processed and converted into finished products needed by consumers" (Encyclopedia of Business and Finance, 2022).
There are many manufacturing types, processes and techniques (Investopedia, 2024). You'll need to determine how a product like yours is manufactured. Consult sources like scholarly articles, books, and videos to figure this out. Take notes on machines, materials or processes that are identified and use these words as search terms later.
If using generative AI tools, remember that the response is a suggestion only. Try describing your product in different ways and then decide on a final process as a team.
Operations Management. (2022). In Encyclopedia of Business and Finance (4th ed., Vol. 2, pp. 627-629). Macmillan Reference USA.
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These are databases that are useful for learning about how products are made and what materials are involved in that process.
JMU Libraries subscribes to many e-books that discuss manufacturing processes in different industries. Ask a Peer Research Adviser for help finding e-books on production in other areas!
These sites have videos that document manufacturing processes.
A supplier is a "person or a company who provides goods or services to another person or entity. For every business transaction, there are two parties. One party is a seller and the other a buyer. The seller is mostly referred to as the supplier while the receiver is the buyer." (DHL, n.d.)
Once you have an idea about the process for making a product similar to yours, you can search for companies that sell the equipment or materials you'll need. These will be your suppliers.
Once you have an idea about the process for making a product similar to yours, you can search for companies that sell the equipment or materials you'll need.
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There are many websites or business directories online, some specific to industries such as restaurants or apparel manufacturing. These suggestions are a starting point but shouldn't be considered an exhaustive list.
The materials and machinery your product requires will ultimately determine the best place to search.
Procurement "is the business process that involves purchasing goods or services from an external supplier, often through a competitive tendering or bidding process," according to A Dictionary of Human Resource Management.
Our subscription to IBISWorld comes with ProcurementIQ reports on more than 1,000 products and services that business might purchase like Office Furniture Systems or Website Design Services. These reports show what drives prices and market trends, which can help your team estimate costs and understand supply risks.
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Outsourcing refers to a procedure in which "the delegation of noncore operations or jobs from internal production to an outside resource (Encyclopedia of Business and Finance, 2022). Outsourcing is also called "contracting out."
"A subset of the term, offshoring, also implies transferring jobs to another country, either by hiring local subcontractors or building a facility in an area with lower production costs."
A company could outsource a step in the production process or a service such as legal counsel.
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Outsourcing in the Business Environment. (2022). In Encyclopedia of Business and Finance (4th ed., Vol. 2, pp. 639-640). Macmillan Reference USA.
Talk with your operations instructors about how much your company can outsource. Many of them will say it's not enough for your business to buy all of the components from other firms and simply assemble them in your facility.
Visiting your instructor's office hours is the best strategy for determining what is appropriate amount of outsourcing for your proposed product.
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Transportation concerns the movement of products from a source—such as a plant, factory, or workshop—to a destination—such as a warehouse, customer, or retail store, according to the Encyclopedia of Small Business (2007, p. 1125).
It includes both getting materials to your facility for production and distributing your finished goods. Transportation may occur by air, water, rail or road. Transportation costs "generally depend upon the distance between the source and the destination, the means of transportation chosen, and the size and quantity of the product to be shipped."
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Transportation. (2007). In Encyclopedia of Small Business (3rd ed., Vol. 2, pp. 1125-1127). Gale.
A freight rate is the cost of transporting goods from one point to another. The freight rate is affected by the distance the goods need to travel as well as the nature of the goods, including whether they are breakable or perishable (Mayhew, 2023).
Search in Google for international freight calculator to see options like Freightos or Freightfinders. Almost all of these sites will require you to sign up for a free account to see your estimated costs.
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Mayhew, S. "freight rate." In A Dictionary of Geography. Oxford University Press, 2023.
The International Trade Association define a tariff as "a tax levied by governments on the value ... of imported products" (ITA, n.d.). The company buying the product pays this tax to the U.S. Custom and Border Protection agency. Tariff rates differ by product category and export country.
Your business will pay tariffs on any material or component that you are purchasing from outside the U.S. For Fall 2025, we are advising COB 300 students who are importing goods to use the Total Rate from the country of origin (i.e., China) on the New York Times Tariff Tracker in their business plan calculations.
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JMU Libraries has created several tutorials in Google Slides to help students use our specialized business resources.
Click on the name of the database to open the tutorial that shows how to search for data and cite the information you find in APA style.