A business plan or an operating agreement is an internal document that outlines how your business (usually a LLC) will run, the financial obligations of the members and managerial rights and duties. Often, a bank, financer or Investor will require an operating agreement to set up a company bank account or before lending to an LLC.
Here’s what you would find included in your operating agreement:
- Company name, headquarters, and address where mail may be sent
- List of owners and their percent of ownership (should equal 100%) with address, telephone number and email address, history, morals, values
- Minority investors – Displays the benefits for both the investor and the clients
- Unforeseen Circumstances – What happens in case of death, disability, divorce or departure of a member
- Procedures for raising additional capital (debt or equity), plans to leverage cash on hand
- Expense Report – Payroll, salary, bonuses and utilities
- Distributions, including whether or not you want a capital fund set up and amounts
- Level of control for operational members (sign checks, order inventory, hire/fire, etc.)
- Exit strategy – build the business and sell or a long-term commitment
With your project manager you will discuss and determine the specifics into you business plan. Your key vision and values will be needed so be ready to answer key questions with your project manager.