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A
venture startup profile
essentially shows a transformation of a corporate shell - marked by
static inertia - into an operating company - marked by
operations in dynamic equilibrium. Of course this means that the
defining operations by which the venture entity becomes recognized
as an operating company must be defined clearly. The scope of these
operations, however, is dependent on the growth strategic plan
adopted during the
vision development analysis, and as translated into
venture growth
strategic plan effective for application in a business context.
Notwithstanding the specificity of these defining operations,
certain business functionalities are common to all ventures, which
must be exhaustively resolved for the venture to successfully
operate free of all possible hindrance or impedance.
The most significant task
of planning for the operations of the venture-entity is the
procurement of Company Facilities. these include, the entity
headquarters, production facility, and other facilities as may be
dictated the operating needs of the entity. Depending on the
circumstances these facilities may be house from the same office
during the startup stage, however, the entrepreneur should secure
only as many facilities, and only as big a facility as absolutely
required and no more. The specifics of the sizing of the space
required, however, depends on the operations as assessed by the
entrepreneur. Most importantly though, these minimum required and
secured facilities should be kept, at least, until such times as
when the entity has evolved past the Execution Phase, and has stable
meaning that it has enter into the state of dynamic equilibrium.
The legal documents, such
as leases and contracts, related to the procurement of the
facilities must necessarily be all signed under the
legal name of
venture-entity. In fact, the entrepreneur should include entity Governance Guide and Policies
document, the stipulation that all legal documents of the company
should be transacted exclusively under the name of the entity, to
make it easy to be referenced as non-negotiate terms for entering
into legal documents.
With the procurement of
the facilities comes the issue of obtaining Insurance for the entity
and the facilities. Often these are consist of general Business
Insurance, Workman Compensation and Business Property Insurance.
These are the standard Insurance that just about every entity must
hold, and the entrepreneur is advised to have them when required.
However, in addition to these, other forms of Insurances such as
Product Liability Insurance, may be required that the entrepreneur
should have. this particular insurance comes under different names
but are all the same in essence. In Manufacturing Industry or for
any entity that is in the business of selling any form of tangible
products the name is as noted; however, in the service industry or
for any entity in the business of selling intangible product, the
name is often changed to Errors and Omission Insurance;
Professional industries tend to refer to the same insurance as
Malpractice Insurance. In any event,
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irrespective of the name the insurance in essence and object is the same. The
entrepreneur is advised to carry all these insurance policies so as
to err on the side of caution.
Noteworthy with respect to
insurances is that, thankfully, sometimes Workman Compensation
Insurance is not required for owner-employee single
staff Limited Liability Companies and Partnerships; however, the
entrepreneur should not in view of this opt to become the owner of
the company in lieu of letting a Business Trust own the company as
recommended for
creating the legal-entity. The reality is that the value
inherent in the asset protection far out-weighs the savings from
passing on the insurance payment.
Some types of businesses
also require operating licenses, and the entrepreneur should find
out all required licences and make sure to obtain them before
starting operations. The penalties for operating with the applicable
licences sometimes can be so exorbitant that the entrepreneur just
must to stop operating as being the only viable choice.
Sales Tax is also a
liability that the entrepreneur must watch out for if the entity
must sell products, whether tangible or not. some States do not have
sales taxes and others do. An entrepreneur operating in a State that
requires sales tax should apply to get the right to collect the tax
and also conscientiously- as stipulated under the laws of that
State- remit the taxes to the Tax Department of the State .
Although not often, one
other situation that comes up occasionally to be attentive about, is
the compliance of product
performance with Certification requirements. In this situation, say,
a government certifies an venture-entity to sell a particular
product based on a performance claim that had been proven. Then, all
future sales presumes prevalence of compliance with the performance
claim. Failure in compliance with such the certification, however,
usually comes sometimes with exorbitant penalty that may just shut
down the entity. A good illustration is the issue of carbon-trading
in some States. Any technology claiming to reduce air pollutants
venting to the governmental stipulated levels may be allowed to
deployable instead of the carbon trading restriction. Such a
technology must at all times be in compliance as certified by the
Governmental Authorities. Hence the entrepreneur is advised to pay
very close attention to such. Further, the entrepreneur may
recognize having two approaches to always being in compliance. One
approach is the adoption of stringent Quality Control and assurance
Methods in the manufacture and quality inspection operations of the
product before release for deployment. The second approach is the
procurement of a very special Product Liability Insurance of an
amount equal in value to the penalty set by the Governmental
Authority. Needles to state that extraordinary insurances are
provided by Lloyds of London.
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Emotional detachment from
employees is also an area that an entrepreneur needs to reflect on,
as both required and imperative, so that any employee can be fired
whenever necessary, and particularly so when the funds for paying
wages and salaries start to run low. Employees
must be dismissed as necessary, because wages and salaries due employees are the
personal responsibility of the manager(s), and the owner-manager is
therefore on the hook for such obligations. An entrepreneur therefore should only keep the
employees whose wages and salaries can be paid. Hence, within the
context of affording oneself protection from the potential failure of a business - after all
as the saying goes, if anything will go wrong it will go wrong,
etc, and the entrepreneur should make sure not to have any emotional association with
any of the employees.
Finally the entrepreneur
must ensure that Market participation is possible and that the
products for the participation can in fact be produced by the
entrepreneur.
Further all the business
processes should be fully developed from top-down beginning from the
top with the overall Business Process Model all the way to the
numerous Business Activities at the departmental levels. There must
be in place employee training programs for the orientation training
of the staff. in the event that there can not a employee training
programs then the entrepreneur should have access to a software
developer to develop and have ready and in place for the use of the
employees. The software must be developed in congruence with the
entity business-process models according to which the employees
would have otherwise performed the activities. in this regard a
robust Business Management Software coded from a well-designed
process modeling of the venture is the preferred choice for
deployment.
Indeed, the issues analyzed so far in
this operations planning essentially constitutes the bulk of the
requirements for maintaining a venture operating in the state
dynamic equilibrium, and an entrepreneur who has put in place most
of the issues address has concluded the development of an
efficacious plan. |
