Business Plan Part IX

Management

Most start-up and small business are very similar in one crucial aspect; usually the owner wears many “hats’ in the operation of the business.  Unless your company can afford to hire various management people, you will likely be taking on multiple roles.  The management section is where you discuss all the principal people within the company as well as the outside sources you may be using for some aspects.  If you are the only one, the section will be solely about you.  Here you need to discuss who owns the business, who will be running the business, as well as the talents and skills of the key employees.  The easiest way to tackle this section is to break it down into manageable sections as follows:

(1)   Personal histories of each principal

  1. Business background & resume
  2. Management experience
  3. Informal and formal education
  4. Personal data such as age, abilities, interests, physical condition, etc.
  5. Personal reasons for going into business
  6. Why management will be successful
  7. If the company will have a Board of directors, discuss who was chosen and why

(2)   Previous work experiences related to the business

  1. Both operational and managerial experience in this type of business
  2. Managerial experience in other areas of business

(3)   Duties and responsibilities of each principal

  1. Who will be doing what?
  2. Who reports to whom?
  3. Who is the final decision maker?

(4)   Expected salaries

  1. Be sure to be reasonable here
  2. Include cost of living increases in budgeting
  3. What, if any fringe benefits will be offered and associated costs
  4. Will any sort of retirement plan be available and associated costs

(5)   Outside resources available – name your selections where applicable for

  1. Accountant, including any accounting software you will be using
  2. Lawyer
  3. Insurance broker – include the insurances you will be carrying
  4. Business trade or civic organizations
  5. Both paid and unpaid consultants
  6. College or university assistance
  7. Government agency assistance such at the CCBVOC, SBA, etc.

(6)   Security issues – how will the business be protected

  1. Insurances include what is in place if the owner(s) become ill or die
  2. Inventory protection
  3. Theft
  4. Disaster plan to cover for natural disasters, fire, etc.

As you can see, this section includes a lot of details.  The purpose is to show a potential lender or investor that the management has the experience necessary or has the resources available to run a successful business. Once you complete the management section, your next topic will be personnel.  If you plan on having employees, your business plan should include a section on personnel.  That will be our next topic.  Until then……..

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