The management team section of your business plan is where you will describe who and how your business will be managed.
This is where you make your best case that you have the right team in place to implement your idea.
That you have thought about the important roles and responsibilities your business needs in order to grow and be successful.
This may be not more than a simple paragraph remarking that you’ll not be the only decision-maker
Or it may be a major section of the plan, consisting of an organizational chart outlining interrelationships among every unit in the business including all key executives.
There is a saying that investors claim they will invest in a strong management team with a mediocre idea but will decline to fund a weak management team with a great idea.
Hence, use this section to show that you have a great management team to complement your great business concept. This is not the place for modesty or self-depreciation.
Be honest, but highlight your accomplishments and your capabilities while mitigating any obvious shortcomings or weaknesses.
Furthermore, A distinctive Management Team section comprises of a brief bio of each team member including their relevant experience and education.
It’s important here to make the case for why the team is the right team to turn an idea into a reality.
- Do they have the right industry experience and background?
- Have members of the team had entrepreneurial successes before?
Be sure to include all of the following parts, where applicable:
Describe how your company will be organized.
How will your business be organized? What does your organizational chart look like?
What is the ownership structure of your company?
Will you have a board of directors? Who will be on it? What will be their role?
Before you can impress people with your management team, it’s important to let your readers know who’s at the helm and who’s selecting the management team.
You, therefore, have to let them know your background, including your vision, your credentials, and why you chose the management team you did.
You need to briefly explain what’s expected of this management team and the role you see them playing in the future of this business.
Also, State, if you have authorized shares of common stock and then break down the number of the shares, held and percentage of ownership for each stockholder.
Biographies of the Management Team
The management section should include the names and backgrounds of lead members of the management team and their respective responsibilities.
Describe the founders and principal managers who will run your business.
Who are the key managers?
What will be their duties and responsibilities?
What unique skills do they bring to the business?
How will they be compensated?
Summarize resumes of key management and owners
List education, skills, experience (including past duties). Focus on important past accomplishments but do not be too lengthy. Detailed resumes may be included in an appendix.
What additions to the management team are you planning? When?
If there is a key position that is not yet filled, explain your plans to do so
Briefly describe the job and the profile, compensation, and qualifications of the prospects
Investors like to see dynamic, dedicated, involved people in the businesses they back.
Stating one or two pertinent individual details of your key managers may help investors feel they know what they’re getting into, especially in today’s progressively transparent business climate.
Professional and Advisory Support
Here you will list service providers your business may consult or from whom you will obtain additional services, who are not a part of your internal staff.
These may include:
Application service providers
Professional service firms
Your business plan should reassure readers that you have your bases covered in these important professional positions. Investors want to profit.
They don’t just give money to people they like or admire. But it’s also true that if they don’t like, admire or at least respect the people running your company, they’re likely to look elsewhere.
The management section of your plan is where you tell them about the human side of the equation.
You can’t control your readers’ responses to that, but you owe it to them to provide the information.
Board of Advisory OR Directors
If your business will have a Board of Advisory or Directors. Be sure to list each member.
Give details where and why they add strategic importance, what experience they have and what contacts they can contribute.
How will the Board be compensated? Technically, the officers of a corporation report to the board of directors, who bear the ultimate responsibility for the proper management of the company.
NOW OVER TO YOU
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