The Management Plan section of your Business Plan will describe how you are going to structure your business ownership through your staff and management team. The people who read the Management Plan will be looking to see who is on your management team, and how the skills of your staff contribute all the way to the bottom.

You should organize and break up your Management Plan into sections such as:

  1. Ownership Structure
  2. Internal Management Team
  3. External Management Resources
  4. Human Resources Needs

Ownership Structure section will describe the legal structure of your business. In this section you want to explain who holds what percentage of ownership in the company. If your business is a sole proprietorship, this part will not be long. If your business is a partnership or corporation, it may be longer.

Internal Management Team section will describe your main business management categories. These will identify who will have responsibility for that category, and profile that person’s skills.

These categories will consist of Sales and Marketing, Administration, and Production. These categories will work for many small businesses. Your company may need additional management categories such as Research and Development and Human Resources.

You may think it will take a bunch of different people to run each of your business management categories, but you can assign people to fill more than one role. You will need to identify the key management people in your business and explain what functions each team member will fill.

You can write your management team outline in an organizational chart or in a list format; either is fine.

However, in this outline, the management plan will include complete resume’s for each member on your management team including yours. It will also explain how each person on your management team have special skills contributing to your business’ success.

After you finish this, you will need to explain what salaries and benefits your management team will receive as well as profit sharing plans. If there are contracts relating to your management team members directly such as work contracts or non competition agreements, you will need to include those in the appendix in your business plan.

Tomorrow we will discuss how you can effectively use external management resources.

Part 1: The Management Plan Section of The Business Plan
Part 2: The Management Plan Section of The Business Plan - External Management Resources
Part 3: The Management Plan Section of The Business Plan - Human Resources Needs

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