How to Write a Business Plan – Ch.2: Management Team

Tips to Master the Management Team Section of Your Business Plan

business plan management teamWelcome back and we hope you learned a lot from our first blog discussing how to write an executive summary. Today’s article will be the first installment of the meat of your business plan. The executive summary briefed your potential investors on the most important topics of your business plan, but now all of those topics get a long, detailed segment of their own. Not all investors are going to be wooed by your executive summary alone – most of them are going to dig deep so you need to provide in-depth content for every topic.

The management section of your business plan is your chance to highlight everyone who will be running the company. If you are a sole proprietor, well, your management section may be brief and consist of you describing your educational and professional background. But for the majority of companies seeking capital, the management section will be extensive and feature an organizational ladder of key associates. Who you choose to include is up to you, but make sure that everyone that brings an advantage or benefit to your company is on the list.

Entrepreneur’s management section article references a quote that may ring a bell: “I don’t invest in ideas; I invest in people.” Outside of a few shockingly brilliant ideas, this quote is applicable to about 99% of companies raising capital. After all, products don’t manufacture themselves, hire employees on their own or magically develop into a conglomerate. It takes human brain power, passion and determination to make it happen. This is where you sell yourself and your team. And in truth, it should be fun and easy to brag about your combined talents. The three main personnel to cover are the owner (you), managers and board members.  Here are some tips on what to include in each segment in the management team section of your business plan:

Business Plan Management Team – The Owner

If you have a pre-written bio from your website, now is the time to make it into a short story. The one thing you need to keep in mind, however, is that it all needs to relate to the company. Start with your education and work experience to provide a little personal background.. Once you reach the point in your life where you decided to establish this company, discuss how the idea came about and why it means so much to you. Explain your vision for the company and skillfully lead into why you selected the individual members of your management team. Chances are they came in one by one so share the timeline and guide the readers right into the management team content.

Business Plan Management Team – Team Members

A management team is just that – a team. On a basketball team you wouldn’t recruit five point guards; you need to fulfill all five different positions to win.  The same goes for business. Clearly indicate who is responsible for finance, marketing, technology and so forth. These individuals may not be the CFO, CMO or CTO yet, but if these titles will bring an added sense of power to the story, you can designate whatever title you like. Companies who will be manufacturing and shipping business plan management teamproducts will have management team members such as an Operations Manager and Shipping and Production Manager. Whatever industry you operate in, be 100% sure that all of your key role-players are cited.

How deep you go into their involvement is entirely up to you. If you choose to provide a simple education and work experience bio, there is nothing wrong with that. It may be dry and read like a resume but the facts are there. On the other hand, if you want to really drive home your team’s passion and involvement, the best route is to tie in their education, employment, skills and accomplishments into a short story. Try to “wow” your readers with the individual achievements of each team member and emphasize their commitment to the company. Qualified, experienced leaders will give your company a huge boost in the eyes of an investor.

Business Plan Management Team – Board Members

Having a strong set of board members will also instill confidence in a potential investor. You won’t have to go into as much detail about the board as you did your own management team, but a simple list acknowledging who they are and what they do in the professional world is important. Investors want to make money, plain and simple. The unbiased expertise of a board of directors will allow the tough decisions to be made sans partiality. Let the investors know you have a solid group of high-level professionals at your service who care about making your company work. Some companies chose to note their attorney, accountant and other outside professionals but these individuals are not mandatory.

The main three aspects of your management team you absolutely must cover are the owner, management team and the board members. Once your readers finish the management team section of your business plan they should feel assured, relaxed and secure in who will be making their investment grow. Not even the most groundbreaking, life-changing product in history can sell, market and produce itself. It takes a team of winners, so use this guide to tell your future investors about the Dream Team they will have working for them.

The next installment of our blog series will cover the Product Section of your business plan, so be on the lookout for Chapter 3: The Product Section.

Thank you for reading and please leave your questions and comments below!                   

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