A business plan is a comprehensive document that describes a business venture. It helps to organize certain issues and shows the market potential of the company. One of the obligatory sections of a business plan applies to the company’s organization and management. What should such a section include? Read our article and find out.
Organization and management – table of contents:
Management and employees
For starters, let’s explain why it is so important to include information about management and employees in your business plan. This is where you need to prove that you have a qualified team to launch and run your startup. If you haven’t employed anyone yet, you need to define who you really need and when you are going to hire them.
This section is supposed to convince potential investors or bank representatives that your venture has the potential, structure, and people suitable to reach your business goal. It is also important for startup founders, as it shows them what resources they already have, what they need, and what kind of people they have to hire.
Such a section of a business plan should consist of several parts. The first one should focus on the company’s structure, the next on the internal and external management team, and the last one on presenting the available human resources.
This part of the business plan should begin with a presentation of the company’s legal structure. There is no need to provide too many details here. In the case of sole traders, one sentence will be enough. Slightly more information will be needed when it comes to corporations. All because it is necessary to clarify the size of each person’s share in the company.
This part of the description should include information about the management of the company. You should specify who is responsible for each area of the startup’s operation. Creating brief profiles of members of the management team will be useful.
Of course, the management structure can vary depending on the specifics and needs of the company. In some organizations, it is enough to have a person managing sales, marketing, administration, and production, while others will still need a human resources department. It all depends on the circumstances. However, it is worth noting that one person is not required for each management area. Functions can be combined depending on the needs and capabilities of the startup.
The description should identify key managers and explain their roles and experience. Add managers’ resumes as attachments. Also, you should provide information on the managers’ salaries and types of contracts.
You should determine how many employees your startup will need at each stage of development and how much it will cost. You should describe exactly how your staffing needs will be met, whether you will rely on full-time employees or contract specialists. It is necessary to describe the skills that the people hired for various positions will need to have. Calculate labor costs and specify the number of employees. It is also a good idea to provide the salaries of at least key employees in the company.
Organization and management – summary
A good business plan describes the current situation, but primarily focuses on the company’s future and plans. The section on management and human resources is important because it shows not only the cost of employment, but also the potential of the staff you plan to build your business with.
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