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Section V – Operational Plan

Section V – Operational Plan

  • Profile photo of George Smith
  • Profile photo of Laura Guillaume
  • Profile photo of Brock Garcia
  • Profile photo of Kayla Smith
  • Profile photo of Steve Guillaume

In the Operational Plan section, we explain the daily operation of the business, its location, equipment, people, processes, and environment. In this section the Operational Plan is important for understanding the expenses in your business.

Legal Environment

  • Determine the companies legal form of ownership: Sole proprietor, Partnership, Corporation, Limited liability corporation (LLC)
  • Licensing, bonding and permit requirements
  • Health, workplace, or environmental regulations; Other special regulations in your industry or profession
  • Trademarks, copyrights, or patents (pending, existing, or purchased)
  • Business contracts – lease agreements, relationship agreements, sales agreements, employment agreements, suppliers contracts, etc.


  • Consider personal financial status when deciding on the company’s legal form of ownership: Sole proprietor, Partnership, Corporation, Limited liability corporation (LLC)
  • Review personal financial health and create a plan to do cleanup if necessary
  • Determine software tools needed to support the business bookkeeping, payroll, credit card processing, sales tax, etc.
  • Acquire proper EIN registration, sales tax ID registration, banking, etc.


  • Location you may not have a location picked out yet or you may not need a location. Many startups operate successfully from home for a while or forever.
  • Is your location important to your customers, employees, partners, suppliers, etc.? What are the nuances of a location that you require?
  • Construction – estimate costs to plan and build out location
  • Equipment – determine all the equipment or assets you require to run the business
  • Create Asset Schedule – be prepared to identify equipment and their costs
  • On-going Expenses – Estimate your occupation expenses, including rent, utilities, insurance, etc.

Personnel (Staffing)

  • Number of employees by function, skill set and the pay structure
  • Training methods and requirements
  • Draft job descriptions for emplo Will you use contract workers in addition to employees?
  • Compensation Plan – staffing plan on when to bring resources onboard at what time


  • Names, addresses and their credit and delivery policies
  • Type and amount of inventory furnished
  • History and reliability, should you have more than one supplier for critical items (as a backup)? Do you expect shortages or short-term delivery problems?


  • What kind of inventory will you keep: raw materials, supplies, finished goods?
  • Average value in stock (i.e., what is your inventory investment)?
  • What is the rate of product turnover? How does this compare to the industry averages?
  • Inventory List – Startup Inventory that list products, quantity, pricing info, reorder info, etc.

Cash Management (Financials)

  • Accounts Receivable (AR)
  • How do you take payment (Cash, Check, Debt Cards, Credit Cards)?
  • Do you offer loyalty programs for promotions, discounts, etc.?
  • How do you manage the cash flow (Checking, Savings)?
  • Accounts Payable (AP)
  • Leverage all the discounts you can find thru organizations and negotiations.
  • Negotiate terms with your vendors/suppliers.
  • How are you going to pay employees?
  • How are you going to pay contractors?

Course Curriculum

Chapter 13 - Legal and Accounting
Chapter 13 – Guide 00:00:00
Chapter 13 – Exercise 00:00:00
Chapter 13 – Quiz Unlimited
Chapter 14 - Facilities, Location, & Equipment
Chapter 14 – Guide 00:00:00
Chapter 14 – Exercise 00:00:00
Chapter 14 – Facitities Spreadsheet 00:00:00
Chapter 14 – Quiz Unlimited
Chapter 15 - Staffing
Chapter 15 – Guide 00:00:00
Chapter 15 – Exercise 00:00:00
Chapter 15 – Staffing Spreadsheet 00:00:00
Chapter 15 – Quiz Unlimited
Chapter 16 - Suppliers & Inventory
Chapter 16 – Guide 00:00:00
Chapter 16 – Exercise 00:00:00
Chapter 16 – Inventory Spreadsheet 00:00:00
Chapter 16 – Quiz Unlimited
Chapter 17 - Cash Management
Chapter 17 – Guide 00:00:00
Chapter 17 – Exercise 00:00:00
Chapter 17 – Quiz Unlimited

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