The organization and management section of the business plan answers several questions for your readers. Who does what in your business? What is their background and why are you bringing them into the business? What are they responsible for? Who's on the advisory board (if you have one) and how you intend to keep them there? What kind of salary and benefits package do you have for your people? What incentives are you offering? How about promotions?

These may seem like unnecessary questions to answer in a one- or two-person organization, but the people reading your business plan want to know the answers, so tell them. Give a detailed description of each division or department and its function. Reassure your reader that the people you have on staff are more than just names on a letterhead.

The organization and management section of your business plan should include:

• Your company's organizational structure
• Details about the ownership of your company
• Profiles of your management team
• The qualifications of your board of directors

Organizational Structure 
A simple but effective way to lay out the structure of your company is to create an organizational chart with a narrative description. This will prove that you're leaving nothing to chance, you've thought out exactly who is doing what, and that there is someone in charge of every function of your company. Nothing will fall through the cracks, and nothing will be done three or four times over. To a potential investor or employee, that is very important.

Ownership Information 
This section should include the legal structure of your business along with the ownership information to which it relates. Have you incorporated your business? If so, is it a C corporation or an S corporation? If you have formed a partnership, is it a general or limited partnership? Are you the sole proprietor?

Incorporate the following ownership information:

• Names of owners
• Percentage ownership
• Extent of involvement with the company
• Forms of ownership (e.g. common stock, preferred stock, general partner, limited partner)
• Outstanding equity equivalents (e.g. options, warrants, convertible debt)
• Common stock (e.g. authorized or issued)

Management Profiles
Experts agree that one of the strongest factors for success in any growth company is the ability and track record of its ownership and management, so let your reader know about the key people in your company and their backgrounds. Provide resumes that include the following information:

• Name
• Position (include brief position description along with primary duties)
• Primary responsibilities and authority
• Education
• Unique experience and skills
• Prior employment
• Special skills
• Past track record
• Industry recognition
• Community involvement
• Number of years with company
• Compensation basis and levels (make sure these are reasonable-neither significantly higher or lower than the market)

Be sure you quantify achievements (e.g. "Managed a sales force of ten people," "Managed a department of fifteen people," "Increased revenue by 15% in the first six months," "Expanded the retail outlets at the rate of two each year," "Improved the customer service as rated by our customers from a 60% to a 90% rating").

Also highlight the ways in which the people surrounding you complement your own skills. If you're just starting out, show how each person's unique experience will contribute to the success of your venture.

Board of Directors' Qualifications 
The major benefit of an unpaid advisory board is that the people on it can provide expertise that your company cannot otherwise afford. A list of well-known, successful business owners and managers can go a long way toward enhancing your company's credibility and perception of management expertise.

If you have a board of directors, be sure to gather the following information when developing the outline for your business plan:

• Names
• Positions on the board
• Extent of involvement with company
• Background
• Historical and future contribution to the company's success

References:
• Small Business Administration

Featured Benefit International Contracts Access over $300 billion in contract and grant opportunities, and market yourself to thousands of donor officials from over 115 foreign aid agencies. > Learn More

Recommended Books