Continuing the Entrepreneurial Journey Theme
In my last article, The Entrepreneurial Journey, we explored individual passion and making a directed decision regarding our business vision.
- What is our business?
- What is our mission?
- What resources are necessary?
- What does an ordinary day look like and how do you want to see that improve?
- Whom do we seek?
- Why do we seek them and where are they?
- How are our goals going to be met and are they of benefit?
- What MOTIVATES me?
That was only the beginning…
Need for a Business Road Map
There comes a challenging point when the entrepreneurial adventure finds it’s necessary to have a map: A business road-map that is based on the unique representations and desired features found on the path in business. When you add other people with skills and talents to bring value, longevity, wealth and health, you must set forth rules and guidelines. Having the proper business map becomes even more critical.
2 Common Business Road Maps – Which Is Right For Your?
In business, there are several types of rules and guidelines you can choose but the most common are:
- Bylaws (Corporation)
- Operating Agreement (Limited Liability Company – LLC)
Both are very different from each other. Both the Corporation and the LLC are a collection of people for mutual protection and cooperation.
Map 1: Bylaws (Corporation)
What Are Bylaws?
A set of rules agreed upon by the participants that outline the managing of the affairs and actions with a legal and lawful pursuit of gain, profit or service.
What’s the Purpose of Bylaws?
The Bylaws authorize and utilize Resolutions Amendments and Minutes to generate and perform operations.
Map 2: Operating Agreement (Limited Liability Company)
What Are Operating Agreements?
Operating Agreements outline individual duties and actions based on their individual talents and skills towards a mutually desired goal. Generally, a termination date is provided.
Whom Do Operating Agreements Concern?
Operating agreements are for a partnership of two or more which pass profit or loss to its managers and/or members. An operating agreement is a business venture contract between managers and members.
What’s the Value of Operating Agreements?
Putting in writing the rules and responsibilities for each party to be held accountable builds trust in expectations and loyalty because each individual can work in good faith knowing that each is providing their effort and energy for a common and beneficial goal and the fruits of that labor can be shared among the adventure.
Action Items (answer the following):
- Who are you in business with?
- What talents, skills and resources are available to your business?
- What is your aim; culturally, emotionally and physically?
- Would a map help with direction and goal setting? If so, which kind?
- Where are your business documents kept?