Management
Team: Business Plan Basics
Many investors base their entire investment
decision on the management team behind a venture. Investors
expect a well-rounded team of professionals with experience
in every function critical to the business. Your management
section should clearly demonstrate who each person is, why
he or she is on your team, and what each person will do.
Try and limit your management team to 3
to 5 people - and to those individuals involved in the day
to day operations that have the greatest impact on the future
success of your business. Everyone else is considered either
an employee, or if not involved in day to day operations should
be included as a member of the Board of Advisors, Board of
Directors or consultants. A discussion of your employees should
be included in the operations section.
The basic components of the management section
include:
Specific Team
Members
Construct a narrative description for each team member,
clarifying his or her background and intended contribution.
This should include:
- Title of this position
- Duties and responsibilities of this position
- what will they be doing, which functions will they be
overseeing, who do they supervise, who do they report to,
etc.
- Previous industry and related experience
- should be those that relate directly to this new position.
Who have they worked for, what were they doing, for how
long did they do it, etc.
- Previous Successes Ð what did they accomplish,
what successful teams or projects did they spearhead, did
they grow a company or a division, were they responsible
for a turnaround or some new breakthrough idea.
- Education Ð keep educational descriptions
brief
Board of Directors
Briefly describe who is on your Board and what role
they play within your company. Briefly list the names, backgrounds,
and contributions that will be made by each board member.
Board of Advisors
Your board of advisors should consist of individuals
with valuable industry expertise and insight, and they help
and consult with you on your business. A solid and experienced
board of advisors goes a long way towards building credibility
in the eyes of investors. Briefly list the names, backgrounds,
and contributions that will be made by each of your board
members.
Consultants
The last part of your management section should include
a brief mention of the outside consultants you will work with
as your company grows. A typical list of consultants would
include accountants, attorneys, bankers, insurance agents,
and experts such as technology advisors, web developers, and
payroll specialists, for example.
Explain the background of the founder(s)
of the company at some length. However, limit this background
information to under 1Ú2 a page. Stick to the facts on all
your management team bios, making it evident why each person
is experienced, why they hold their position and the benefits
they provide your company.
One last note:Ê Always keep in mind that
given the choice between an excellent business concept with
second-rate managers and a mediocre business concept with
top-notch managers, investors prefer the latter.
For more advice on writing the management team section of
your business plan:
Email
us at BizPlanIt if you have comments or suggestions about
our Virtual Business Plan.
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