Now that we understand the structure of your business, we need to meet the people who’ll be running it. This section is important even for a single practitioner or sole proprietorship, as it will introduce you and your qualifications to the readers of your plan.
Now that we understand the structure of your business, we need to meet the people who’ll be running it. This section is important even for a single practitioner or sole proprietorship, as it will introduce you and your qualifications to the readers of your plan.Start at the top with the legal structure and ownership of the business.For larger companies, an organizational plan with well-thought-out procedures is even more important.
Obviously, for small businesses, the organization will be far more streamlined and less complicated than it is for larger ones, but your business plan still needs to demonstrate an understanding of how you’ll handle the work flow.
At the very least, you’ll need to touch on sales and marketing, administration, and the production and distribution of your product or the execution of your service.
One way to explain your organizational structure in the business plan is graphically.
A simple diagram or flowchart can easily demonstrate levels of management and the positions within them, clearly illustrating who reports to whom, and how different divisions of the company (such as sales and marketing) relate to each other.
You want your readers to feel like your top staff complements you and supplements your own particular skill set.
You also want readers to understand why these people are so qualified to help make your business a success.Having a solid plan for how your business will run is a key component of its smooth and successful operation.Of course, you need to surround yourself with good people, but you have to set things up to enable them to work well with each other and on their own.Lenders and investors will be keenly interested in their previous successes, particularly in how they relate to this current venture.Include each person’s name and position, along with a short description of what the individual’s main duties will be.Think of this section as a resume-in-a-nutshell, recapping the highlights and achievements of the people you’ve chosen to surround yourself with.Actual detailed resumes for you and your management team should go in the plan’s appendix, and you can cross reference them here.A smooth-running operation runs far more efficiently and cost-effectively than one flying by the seat of its pants, and this section of your business plan will be another indication that you know what you’re doing.A large company is also likely to need additional operational categories such as human resources and possibly research and development.It’s important to define the positions in the company, which job is responsible for what, and to whom everyone will report.Over time, the structure may grow and change and you can certainly keep tweaking it as you go along, but you need to have an initial plan.