Section V – Operational Plan
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.
- 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.
- 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?
|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|
No Reviews found for this course.