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• How to Use Your Business Plan Most Effectively
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• How to Use Your Business Plan to Track Performance
• How to Make Your Business Plan Attractive to Prospective Partners
• Is This Idea Going to Work? How to Assess the Potential of Your Business.
• When to Update Your Business Plan
• How to Write the Management Team Section to Your Business Plan
• How to Create a Strategic Hiring Plan
• How to Write a Business Plan Executive Summary That Sells Your Idea
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How to Write the Management Team Section to Your Business Plan Think you've got an all-star lineup? These are the key characteristics to showcase.

By Eric Butow • Oct 27, 2023

Key Takeaways

• Who to include in your org chart
• The key traits to highlight

Opinions expressed by Entrepreneur contributors are their own.

This is part 1 / 8 of Write Your Business Plan: Section 3: Selling Your Product and Team series.

One crucial aspect of any business plan is the management team slide, which outlines the key employees in the organization. Here are some things to keep in mind when putting together your all-star lineup.

Put Yourself First

Don't be modest. If you're the head of the business, you should feature yourself first. After all, you are the entrepreneur behind the business venture, and you will have to put your neck on the line, answer the hard questions, and take the criticism— as well as the praise and acclaim, should there be some.

If you want to impress people with your management team, it's essential to let your readers know who is at the helm and who is selecting the management team. Explain your background, including your vision, your credentials, and why you chose the management team you did.

A business follows the lead of the founder, and as such, you need to briefly explain what is expected of this management team and the role you see it, as a group, playing in the future of this business.

Related: Does Your Team Have the Right Stuff to Attract Venture Capital?

Highlight These Characteristics

Identifying your managers is about presenting what they bring to the table. You can provide this by describing them in terms of the following characteristics:

Education Impressive educational credentials among company managers provide strong reasons for an investor or other plan reader to feel good about your company. Use your judgment in deciding what educational background to include and how to emphasize it. If you're starting a fine restaurant, for example, and your chef graduated at the top of her class from the Culinary Institute of America, play that front and center. If you're starting a courier service and your partner has an anthropology degree from a little-known school, mention it, but don't make a big deal out of it.

Employment Prior work experience in a related field is something many investors look for. If you've spent ten years in management in the retail men's apparel business before opening a tuxedo outlet, an investor can feel confident that you know what you're doing. Likewise, you'll want to explain your team members' key, appropriate positions. Describe any relevant jobs in terms of job title, years of experience, names of employers, and so on. But remember, this isn't a resume. You can feel free to skim over or omit any irrelevant experience. You do not have to provide exact dates of employment.

Related: How to Craft a Business Plan That Will Turn Investors' Heads

Skills A title is one thing, but what you learn while holding it is another. In addition to pointing out that you were a district sales manager for a stereo equipment wholesaler, you should describe your responsibilities and the skills you honed while fulfilling them. Again, list your management team's skills that pertain to this business. A great cook may have incredible accounting skills, but that doesn't matter in the new restaurant's kitchen.

Each time you mention skills that you or a management team member has spent years acquiring at another company, it will be another reason for an investor to believe you can do it at your own company.

Accomplishments Dust off your plaques and trot out your calculator for this one. If you or one of your team members has been awarded patents, achieved record sales gains, or once opened an unbelievable number of new stores in the space of a year, now's the time to talk about it. Don't brag. Just be factual and remember to quantify. If, for example, you have twelve patents, your sales manager had five years of thirty percent annual sales gains, and you oversaw the grand openings of forty-two stores in eleven months, this is the stuff investors and others reading your business plan will want to see. Investors are looking to back impressive winners, and quantifiable results speak strongly to businesspeople of all stripes.

Personal information Investors want to know with whom they're dealing in terms of the personal side. Personal information on each member of your management team may include age, city of residence, notable charitable or community activities, and, last but not least, personal motivation for joining the company. Investors like to see vigorous, committed, and involved people in the companies they back. Mentioning one or two of the relevant personal details of your key managers may help investors feel they know what they're getting into, especially in today's increasingly transparent business climate.

Related: How to Evaluate Your Startup Like a VC

Who to Include in Your Plan

Should you mention everyone in your organization down to shop foremen or stop with the people on your executive committee? The answer is probably neither. Instead, think about your managers in terms of the crucial functions of your business.

In deciding the scope of the management section of your plan, consider the following business functions, and make sure you've explained who will handle those that are important to your enterprise:

• Advertising
• Distribution
• Human Resources
• Technical Operations

Related: How To Build a Team of Outside Experts for Your Business

What Does Each Person Do?

There's more to a job than a title. A director in one organization is a high and mighty individual, whereas a director is practically nobody in another company. Many industries have unique job titles, such as managing editor, creative director, and junior accountant level II, with no counterparts in other industries.

In a longer plan, when you give your management team's background and describe their titles, don't stop there. Go on and tell the reader exactly what each management team member will be expected to do in the company. This may be especially important in a startup, where not every position is filled. If the CFO will handle your marketing work until you get further down the road, let readers know this upfront. You certainly can't expect them to figure that out on their own.

In a shorter business plan, or mini-plan , choose those people most vital to your business. If you are opening a martial arts studio, the instructors, or lead instructors, are significant, as is the software developer in a new software company. While you have room to describe these people in more detail in a longer plan, in the shorter miniplans, use one defining sentence for your top five people.

Related: 6 Tips for Making a Winning Business Presentation

Future Hires

If you do have significant holes in your management team, you'll want to describe your plans for filling them. You may say, for example, "Marketing duties are being handled temporarily by the vice president for finance. Once sales have reached the $500,000 per month level, approximately six months after startup, a dedicated vice president of marketing will be retained to fulfill that function."

In some cases, particularly if you're in a really shaky startup and need solid talent, you may have to describe in some detail your plans for luring a hotshot industry expert to your fledgling enterprise. Then, briefly describe your ideal candidate. For a mini-plan, you may write, "We plan to hire a marketing VP who excels in reaching our 20–29 target market."

Related: Vusi Thembekwayo's 7 Rules of Pitching

More in Write Your Business Plan

Section 1: the foundation of a business plan, section 2: putting your business plan to work, section 3: selling your product and team, section 4: marketing your business plan, section 5: organizing operations and finances, section 6: getting your business plan to investors.

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Tips on Writing the Management Team Section of a Business Plan

Free Ultimate Guide On Writing A Business Plan

• December 21, 2023

10 Min Read

A business is as efficient as its team and its management. It, therefore, becomes important for business owners to build a structured management team that achieves the objectives and goals set by the organization. Thus, making the management section of a business plan the most essential component.

Andrew Carnegie , an American steel magnate, beautifully summarized it –

Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results.

A business management plan helps build an efficient team and formalize business operations . This helps businesses streamline strategies to achieve their goals.

It, therefore, becomes imperative that business owners pay utmost importance while writing the management section of a business plan.

So, if you are a business owner who is looking to formalize their business structure and write the management team section in their business plan , this guide is for you.

Here’s a sneak peek into what you’ll learn:

Table of Contents

• What Is the Management Section?
• Importance of the Management Section
• What to Include in the Management Section?
• Example of a Management Section Plan
• Ensure That the Management Section Is Fool-proof?

Sounds good? Let’s dive in.

What Is The Management Section Of A Business Plan?

The management section of a business plan is an in-depth description of a business’s team, its structure, and the ownership of a business.

The section discusses in detail who is on the management team – internal and external- their skill sets, experiences, and how meaningfully they would contribute to an organization’s goals and outcomes.

Now that we have defined what is the management section of a business plan, let’s understand why it is so important.

The Importance Of The Management Section Of A Business Plan

The management section helps you to:

1. Convince your investors (banks and government agencies) to disburse loans and grants for your business idea

2. Prove that your management team can execute your idea and if not, help hire the right fit for a position

3. Share how your advisory board can help your team succeed

What To Include In the Management Section Of A Business Plan?

The management section of a business plan helps in formalizing and structuring the management team plan and is comprised of

• The Management Team
• The Management Team Gaps
• The Management Structure

Let’s understand them in detail.

1. The Management Team

An organization’s entire management team can be divided into parts – the internal team and the external team.

The Internal Management Team

A business team consists of several departments. The most common departments are – Marketing, Sales, IT, Customer Service, Operations, Finance, and HR.

These departments may or may not be required. It purely depends on the nature and functioning of your business. For example, a dental clinic may not require a sales department per se.

The entire management team is compartmentalized according to their responsibility. This helps the business owners and investors be aware of the roles, benefits, ESOPs (if applicable), profit sharing (for sales), work contracts, NDAs (Non-Disclosure Agreements), and Non-Competition Agreements of the entire team.

It is recommended that business owners collect and document the following information about their team:

• Educational Background
• Work Experience
• Accomplishments

For example, your present VP of Marketing helped their previous company grow its bottom line from $3 million to $10 million over 18 months.

The External Management Team

The external management team is usually composed of – Advisory Board Members and Professional Services.

Advisory board members help by :

• Establishing trust, showing results, and experiencing the table.
• Increasing the confidence of investors and consumers.

This helps attract talented employees to the team. Credible advisory board members show great commitment to a company’s growth. Therefore, it becomes important to document their experience and specialization in the business management plan. The advisory board members can help give valuable advice that internal team members need or lack.

If your business has not or will not have VC funding, you may not require board members on your team.

Usually, board members meet quarterly or monthly to provide strategic guidance in place of stock options in your company. This helps attract the best advisors and motivates them to invest in your business.

For example, founders and business owners coming to raise funds in Shark Tank , a business television series, are looking for advisory members who would invest money and provide guidance on necessary steps.

On the other hand, Professional Service helps by

• Offering highly specialized advice and sharing knowledge.
• Business owners make key strategic management decisions.

Such services help businesses leverage skills that would be difficult to build and acquire over a short period.

Examples of such professional services are

• IT Consultants
• Business coaches and consultants

After a brief overview of the Management Team of an organization, let’s dive into what to include in Management Team Gaps.

2. The Management Team Gaps

The management team gap is an important part of the management section. Primarily because it helps document if your management team currently has gaps or missing skills. Your team may lack a few required skills while starting. The management team gaps help you to be aware and make efforts to close this gap.

As a business owner, you must document what positions are missing and who ought to fill that positions or take responsibility.

For example, if you need a VP of Sales, clearly document this in the section.

Also, write down the job description and key responsibilities to be undertaken,

Example – You might mention that role required 10 years of experience in the sales domain. The applicant must have experience handling a sales team, closing new accounts, working in tandem with the marketing team, and having relevant startup experience.

Be as detailed as possible. This will help you build a checklist while interviewing the right candidate and also win investor confidence in your managerial skills.

Following are a few key positions you would want to include in your management team:

• Founder and/or, CEO
• Chief Technical Officer (CTO)
• Chief Marketing Officer (CMO)
• Chief Operating Officer (COO)
• Chief Financial Officer (CFO)
• Chief Human Resources Officer (CHRO)
• Head of Product Management (PM)
• VP of Sales
• VP of Marketing
• UX Designer
• Digital Marketing Manager
• Business Development Manager
• Customer Service Manager
• Customer Success Manager
• Sales Managers/Sales Staff
• Advisory Board Members

Let’s dive into the nitty-gritty of the management structure.

3. The Management Structure

The management structure defines how a business organizes its management hierarchy. A hierarchy helps determine the roles, positions, power, and responsibilities of all team members.

The management structure also depends upon the type of business ownership. Business ownership can be – a sole proprietorship, partnership, or simply an LLC.

Following is a sample management structure of an organization.

Now that we understand what details we need to document in the business management plan, let’s look at a few examples of the management plan.

Example Of A Management Section Plan

[management section of a hotel], [management team], internal team members.

Name: Charles Fargo Role: Owner Responsibility: Formulating key strategies, defining budgets, and building a business plan Experience: 35 years of owning multiple hotels in Las Vegas Educational Background: B.Sc in Hospitality Management from South Dakota State University.

Name: Michael Clark Role: General Manager Responsibility: Overall hotel operations – guest interactions, revenue management, brand ambassador of the hotel, customer satisfaction, and experience, leadership to all departments Experience: 25 years working with several technology hotels as the general manager. Educational Background: MBA from Wharton School

Name: George Trump Role: Department Manager Responsibility: Manage employees, smooth coordination amongst employees, plan daily affairs of the department, strategize, prepare reports, and deal with complaints and suggestions. Lead team members to function as a team Experience: 15 years working as a department manager Educational Background: BSc in Hotel Management from Texas University

Note: There can be multiple Department Managers depending on the nature of your business. In the case of hotels, departments can include – housekeeping, logistics, security, food, and banquets.

Name: Donald Clooney Role: Marketing and Sales Manager Responsibility: Increase occupancy and generate revenue. Position the hotel as an option for leisure activities, relaxation, and holidays. Experience: 11 years working as the marketing and sales manager for hotels Educational Background: MBA in Tourism and Hospitality from Midway University

External Team Members

Advisory Board Member

#1 Richard Branson Responsibility: Strategic advisory for sustainable growth and expansion Experience: Founder of Virgin Group

Professional Services

[management structure].

There is a gap in one key position in our startup.

#1 Chief Finance Officer (CFO) Responsibilities: Finance, Accounting, Tracking Profit and Loss, and overseeing FP&A (Financial Planning and Analysis)

How To Ensure That The Management Section Of Your Business Plan Is Fool-Proof?

“In preparing for battle I have always found that plans are useless, but planning is indispensable.” ― Dwight D. Eisenhower

By building a fool-proof management plan and ensuring that all the intricate details are accounted for, we can ensure that your business has a greater chance of succeeding.

Business planning software like Upmetrics ensures that business owners, like you, get the management section planning correct on the first attempt itself.

You can also get started with a free demo today to discover how Upmetrics can help you plan your business in a breeze.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to present the management team in your business plan?

Behind every successful business venture lies a dynamic and capable management team that serves as the driving force behind its growth and success. 

In the world of entrepreneurship, having a strong management team is a crucial element that investors and stakeholders closely examine before deciding to invest in or support a business. 

When crafting a compelling business plan, showcasing your management team effectively is vital. This section should include details regarding the members of your management team and explain how their respective skillsets compliment each other and will give your business the best chance of success.

So, let's delve into the essential strategies and best practices to effectively introduce your management team and leave a lasting impression on those who hold the keys to your business's success.

In this guide:

What is the objective of the management team subsection of your business plan?

What information should i include when presenting the management team in my business plan.

• How long should the management section of your business plan be?
• Example of management section in a business plan

What tools should I use to write my business plan?

The part presenting the management team aims to detail the qualifications and experience of the management team responsible for leading the company.

When writing this section, your goal should be to demonstrate to potential investors that the professionals hired by your business are qualified to hold leadership roles because they have the required expertise and exeperience.

It is crucial to address any skills or experience gaps within your management team. Explain your strategies for filling these gaps, and mention if involving a board member to provide additional support in those areas is a possibility.

Another pivotal aspect is emphasizing your management team's cohesiveness and successful collaboration. This is necessary as potential investors are not just interested in the product or service you offer, but they also invest in the people behind the business. 

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

In professional business plans, the management team subsection is usually placed at the end of the company section, after the presentation of the business’ structure, ownership, and location. 

The management team subsection should aim to provide the investors with a comprehensive understanding of who's responsible for delivering the business plan. 

Let’s have a look at the different aspects that this section should cover:

Business structure and role

Start by giving an outline of how your business is or will be structured internally (i.e. the overall hierarchy and where each individual is positioned). 

You should keep this section focused in people in leadership position. The exact number of relevant people will vary based on the size of your business. For example, this could involve naming the CEO, CFO and CMO, or the managing director and his right hand in a smaller business.

You can provide an organisational chart in the appendices to make this easier for the reader to understand your exact organization.

Thorough profile

A detailed profile for each member of the management team is necessary and should include the following details:

• Background information including their gender and nationality
• Their educational background emphasizing any degrees or certifications that are relevant to their roles
• Qualifications or accreditations that hold team members distinct in their particular industries
• A rundown of all relevant job experience, both in the same sector/role or in other industries
• Both hard and soft skills that each team member possesses which makes them an asset to the business
• Details of how long they've been with the company

Visual assets

Incorporating visual aids, such as organizational charts and images of the management team members helps improve the readability of this section. 

These representations prove especially beneficial in situations like pitching sessions, where potential investors may have the opportunity to engage with the team face-to-face in the future.

Succession planning (if applicable)

Briefly describe your succession planning approach if your company has plans for future leadership transitions. 

Discuss how important individuals may leave their positions over time and how the business aims to replace them.

Startups only

If your business is a start-up, describe why the founders decided to start this business together, how long they've known each other, and what motivated them.

Some roles or positions may be vacant for startups or businesses that are still in the early stages of growth. It is crucial to discuss these positions and provide a staffing strategy in such situations.

How long should the management section of your business plan be? 

As a general rule of thumb, 2 to 3 paragraphs per individual can be considered a good starting point. This recommendation may need to be modified depending on the size of your management team and the specific characteristics of your industry:

• If your business has less than five people: each member of the management team is crucial. To showcase the team's trustworthiness in such situations, additional information about each member's background, credentials, and area of specialty is necessary.
• A more concise approach may be acceptable in larger companies with a larger management team. In this case, concentrate on key executives and give a general picture of the leadership structure rather than going into excessive detail on each individual.
• The nature of your industry can also define the level of detail required in the management section. In emerging industries or those with specialized technologies, the reader may not be familiar with all of the details and so it’s important to explain how each team member contributes to the business.
• In industries with strict rules and regulations - medical practice for example - your business plan's management section might need to focus more on the qualifications and experience of each team member. Mentioning their previous roles, especially if they were leaders in other organizations, can make your management section appear stronger and more effective.

Ensure a balance between providing enough detail and avoiding excessive elaboration (CVs can be included in appendix if necessary).

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

Example of management section in a business plan 

Below is an example of how the management section of your business plan might look like. As you can see, it precedes the products and services section.

The management section of a business plan outlines the organizational structure, key team members, their roles, responsibilities, and expertise, demonstrating the leadership and operational framework of the business.

This example was taken from one of  our business plan templates .

In this section, we will review three solutions for creating a business plan for your business: using Word and Excel, hiring a consultant to write the business plan, and utilizing an online business plan software.

Create your business plan using Word or Excel

This is the old-fashioned way of creating a business plan (1990s style) and using Word or Excel has both pros and cons.

On the one hand, using either of these two programs is cheap and they are widely available. 

However, creating an error-free financial forecast with Excel is only possible if you have expertise in accounting and financial modeling.

Because of that investors and lenders might not trust the accuracy of your forecast unless you have a degree in finance or accounting.

Also, writing a business plan using Word means starting from scratch and formatting the document yourself once written - a process that can be quite tedious - especially when the numbers change and you need to manually update all the tables and text.

Ultimately, it's up to the business owner to decide which program is right for them and whether they have the expertise or resources needed to make Excel work. 

Hire a consultant to write your business plan

Outsourcing your business plan to a consultant can be a viable option, but it also presents certain drawbacks. 

On the plus side, consultants are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring consultants is expensive: budget at least £1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the first meetings with lenders).

For these reasons, outsourcing the plan to a consultant or accountant should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their own business plan using an online software.

Use an online business plan software for your business plan

Another alternative is to use online business plan software .

There are several advantages to using specialized software:

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can be inspired by already written business plan templates
• You can easily make your financial forecast by letting the software take care of the financial calculations for you without errors
• You get a professional document, formatted and ready to be sent to your bank
• The software will enable you to easily track your actual financial performance against your forecast and update your forecast as time goes by

If you're interested in using this type of solution, you can try our software for free by signing up here .

Whilst it’s true that all investors aim to maximise profit, it’s also important to remember that they probably won’t finance a business if they are uneasy about the individuals running it. 

A well-written management section of your business is, therefore, critical in ensuring that your business plan is able to obtain funding and grow.

Also on The Business Plan Shop

• 7 tips for writing an effective business plan
• Where to write the conclusion of your business plan?
• How to write the location section of your business plan
• How to write the products and services section of your business plan
• How to write the milestones section of your business plan

Know someone who needs help writing up the management section of their business plan? Share this article with them and help them out!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Write the Management Team Section of a Business Plan

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• Write a Business Plan
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Of course, they'll read the market analysis section – and you can expect them to linger over the financial projections section. But if there's one section of a business plan that may carry the greatest weight with lenders, investors and potential strategic partners, it's the management team section. This is where you provide details about the education, qualifications and experience that you and your management team bring to your small business. Written in a crisp and focused manner, the management team section should help those third parties recognize what sets your business apart from others. And it should give meaning to that oft-repeated business maxim: “I don't invest in ideas; I invest in people.”

Gather Key Information

Before you put pen to paper – or your fingers to the keyboard – gather the information you need on your management team. At the least, you should have their resumes handy – and include them in the appendix of your business plan.

Also, be prepared to speak with members of your management team to fill in any blanks. Structure the management team section to include:

• An organizational chart of your small business, including departments, department managers and employees. Biographical information about you, the owner, and any other owners. Specify your ownership percentage and exactly what your day-to-day responsibilities will be. Biographical information on your management team.* The credentials of any advisers who will be at your side providing expert advice, such as an accountant and a lawyer.

One Paragraph Poses One Big Challenge

Like many small-business owners, you may not think of yourself as a writer. So you may be relieved to know that you should devote only about one paragraph to each person you profile in the management section. But in the end, that should be one substantive paragraph, and it will require some finesse to pull it off.

As many writers will attest, being verbose isn't difficult; being concise yet enlightening can be a challenge. Put another way, you want to include only the most relevant and insightful information about your management team – and you want to be quick about it. So be prepared to edit your words ruthlessly as you structure the paragraph to include the team members' info:

• Name and title. Education and professional credentials and some personal information. Primary responsibilities at your small business.

Expand the Second Component

Providing names and titles should be the easy part. The most robust part of your paragraph should proceed with ease if you include:

• Education credentials, including college and major, and any relevant certifications. Employment highlights. Pick the last or last two titles and company affiliations unless there is something truly stellar in someone's past worth mentioning. Skills or specialties, meaning those things that someone truly excels at or is known for.* Notable accomplishments, which can serve as a subliminal message that they can be repeated at your small business.
• Personal insights, which may include anything from community involvement to someone's rationale for joining your company. You have a lot of latitude here, so try to think in terms of what conveys the mark of a can-do, energetic person. If you're impressed by it, chances are someone reading your business plan will be too.

Spell Out the Third Component

Because you opened the paragraph with the person's name and title, you want to close it with a summation of the contributions you expect the person to make. Discretion here is important; you want to demonstrate to people reading your business plan that you've hired accomplished people, but you don't want to stray into the realm of hyperbole, either.

This said, after spelling out so many numbers and analytics in your business plan, the management section is your chance to expose the human side of your business. A good balance can be found in this paragraph:

Thomas Cole, Director of Marketing A mass communication graduate of Illinois State University, Tom brings to us nearly 20 years of marketing experience and a proven ability to integrate best practices into emerging businesses. Websites, smartphones and digital marketing all came of age as the proud redbird worked as a district marketing manager for ABC Media and then marketing manager for XYZ Newspaper Group, both in Chicago. Tom helped these companies navigate sea changes in the newspaper industry and return to profitability by developing imaginative and synergistic marketing campaigns. We expect him to replicate these efforts at Write-On Marketing, at least when he's not busy critiquing the latest creations at his family's award-winning Illinois winery.

Assuming that you believe people are your greatest asset, write your management section like the proud small-business owner you are – your instincts should serve you well.

• NFIB: Parts of a Business Plan: 7 Essential Sections
• Inc.: How to Write a Great Business Plan: Management Team
• Entrepreneur: First Steps: Writing the Management Section of Your Business Plan
• BP Plans: Coffee Export Business Plan

Mary Wroblewski earned a master's degree with high honors in communications and has worked as a reporter and editor in two Chicago newsrooms. Then she launched her own small business, which specialized in assisting small business owners with “all things marketing” – from drafting a marketing plan and writing website copy to crafting media plans and developing email campaigns. Mary writes extensively about small business issues and especially “all things marketing.”

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• 1 What Is an Appendix in a Business Plan?
• 2 How to Write an Executive Summary on a Marketing Plan
• 3 What Are the Components of a Good Business Plan?
• 4 What Are the 4 Important Parts of a Business Plan?

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Writing the Organization and Management Section of Your Business Plan

What is the organization and management section in a business plan.

• What to Put in the Organization and Management Section

Organization

The management team, helpful tips to write this section, frequently asked questions (faqs).

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Every business plan needs an organization and management section. This document will help you convey your vision for how your business will be structured. Here's how to write a good one.

Key Takeaways

• This section of your business plan details your corporate structure.
• It should explain the hierarchy of management, including details about the owners, the board of directors, and any professional partners.
• The point of this section is to clarify who will be in charge of each aspect of your business, as well as how those individuals will help the business succeed.

The organization and management section of your business plan should summarize information about your business structure and team. It usually comes after the market analysis section in a business plan . It's especially important to include this section if you have a partnership or a multi-member limited liability company (LLC). However, if you're starting a home business or are  writing  a business plan for one that's already operating, and you're the only person involved, then you don't need to include this section.

What To Put in the Organization and Management Section

You can separate the two terms to better understand how to write this section of the business plan.

The "organization" in this section refers to how your business is structured and the people involved. "Management" refers to the responsibilities different managers have and what those individuals bring to the company.

In the opening of the section, you want to give a summary of your management team, including size, composition, and a bit about each member's experience.

For example, you might write something like "Our management team of five has more than 20 years of experience in the industry."

The organization section sets up the hierarchy of the people involved in your business. It's often set up in a chart form. If you have a partnership or multi-member LLC, this is where you indicate who is president or CEO, the CFO, director of marketing, and any other roles you have in your business. If you're a single-person home business, this becomes easy as you're the only one on the chart.

Technically, this part of the plan is about owner members, but if you plan to outsource work or hire a virtual assistant, you can include them here, as well. For example, you might have a freelance webmaster, marketing assistant, and copywriter. You might even have a virtual assistant whose job it is to work with your other freelancers. These people aren't owners but have significant duties in your business.

Some common types of business structures include sole proprietorships, partnerships, LLCs, and corporations.

Sole Proprietorship

This type of business isn't a separate entity. Instead, business assets and liabilities are entwined with your personal finances. You're the sole person in charge, and you won't be allowed to sell stock or bring in new owners. If you don't register as any other kind of business, you'll automatically be considered a sole proprietorship.

Partnership

Partnerships can be either limited (LP) or limited liability (LLP). LPs have one general partner who takes on the bulk of the liability for the company, while all other partner owners have limited liability (and limited control over the business). LLPs are like an LP without a general partner; all partners have limited liability from debts as well as the actions of other partners.

Limited Liability Company

A limited liability company (LLC) combines elements of partnership and corporate structures. Your personal liability is limited, and profits are passed through to your personal returns.

Corporation

There are many variations of corporate structure that an organization might choose. These include C corps, which allow companies to issue stock shares, pay corporate taxes (rather than passing profits through to personal returns), and offer the highest level of personal protection from business activities. There are also nonprofit corporations, which are similar to C corps, but they don't seek profits and don't pay state or federal income taxes.

This section highlights what you and the others involved in the running of your business bring to the table. This not only includes owners and managers but also your board of directors (if you have one) and support professionals. Start by indicating your business structure, and then list the team members.

Owner/Manager/Members

Provide the following information on each owner/manager/member:

• Percentage of ownership (LLC, corporation, etc.)
• Extent of involvement (active or silent partner)
• Type of ownership (stock options, general partner, etc.)
• Position in the business (CEO, CFO, etc.)
• Duties and responsibilities
• Educational background
• Experience or skills that are relevant to the business and the duties
• Past employment
• Skills will benefit the business
• Awards and recognition
• Compensation (how paid)
• How each person's skills and experience will complement you and each other

Board of Directors

A board of directors is another part of your management team. If you don't have a board of directors, you don't need this information. This section provides much of the same information as in the ownership and management team sub-section. 

• Position (if there are positions)
• Involvement with the company

Even a one-person business could benefit from a small group of other business owners providing feedback, support, and accountability as an advisory board. 

Support Professionals

Especially if you're seeking funding, let potential investors know you're on the ball with a lawyer, accountant, and other professionals that are involved in your business. This is the place to list any freelancers or contractors you're using. Like the other sections, you'll want to include:

• Background information such as education or certificates
• Services provided to your business
• Relationship information (retainer, as-needed, regular, etc.)
• Skills and experience making them ideal for the work you need
• Anything else that makes them stand out as quality professionals (awards, etc.)

Writing a business plan seems like an overwhelming activity, especially if you're starting a small, one-person business. But writing a business plan can be fairly simple.

Like other parts of the business plan, this is a section you'll want to update if you have team member changes, or if you and your team members receive any additional training, awards, or other resume changes that benefit the business.

Because it highlights the skills and experience you and your team offer, it can be a great resource to refer to when seeking publicity and marketing opportunities. You can refer to it when creating your media kit or pitching for publicity.

Why are organization and management important to a business plan?

The point of this section is to clarify who's in charge of what. This document can clarify these roles for yourself, as well as investors and employees.

What should you cover in the organization and management section of a business plan?

The organization and management section should explain the chain of command , roles, and responsibilities. It should also explain a bit about what makes each person particularly well-suited to take charge of their area of the business.

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How To Write the Management Team Summary of a Business Plan

The people responsible for the management of your company do matter to your lenders, investors, and potential strategic partners. This crucial part of your plan shows your investors how your business is structured, who is involved in your company’s development, including external resources, and how the whole industry is managed overall.

The management team summary of a business plan also highlights your team’s education, qualifications, and experience.  In turn, the summary then also showcases your company’s strengths and what sets your business apart from others. That’s why it’s essential to learn how to write the management team summary of a business plan.

Who to Include in Your Management Team Summary

1.your team founder(s) or leader(s).

It’s vital to introduce potential investors to the person(s) responsible for selecting and organizing your team. We call these the key leaders. You’ll want to highlight the person(s) background, vision, and credentials in detail and explain how exactly they choose this specific management team.

2.The Team Itself

Like with your team founder(s) or leader (s), you’ll want to include biographical information about the owner(s), including their skills and professionalism. This should be done with accuracy but also brevity. Highlight the following for each manager:

• Educational credentials
• Professional training (specific to the role)
• Current and previous work experience relevant to the field
• Skills and specialties
• Accomplishments gained while working for the company
• Community involvements

You can also include, if applicable, their age, the city where they live now, their most notable activities, and their motives to become part of the management team. We recommend adding an organizational chart, including departments, department managers, employees, and any relevant employee resumes, to the appendix of your plan. However, because a team rarely functions as an organizational chart indicates, we always recommend describing how key personnel will interact with each other and how their roles may cross paths.

3.The Board (if relevant)

If your management team also includes a board, introduce them here and why each board member was chosen to be a part of the board.

4.Outside Professionals

A team may not always include the people who work for a company. It could also include outside professionals who have lent their support and expert advice. This could include accountants, lawyers, public relations professionals, administrative support, or an external advisory board.

5.Business Structure

Is your company a sole proprietorship, an LLC, a partnership, or a corporation? It’s important to state this clearly here.

How long should the management team summary be?

When learning how to write the management team summary of a business plan, it’s crucial to exercise conciseness while still including the most relevant and insightful information about your management team. We recommend keeping the management summary to a single page or two at the most. If it’s any longer, it may not be read in its entirety.

To ensure that your summary is easy to read, keep it simple in form, function, and structure. This can be accomplished by using:

• Subheadings
• Infographics
• An organization structure based on informational importance, starting with what you think needs more attention and emphasis and then follows up with other points.
• Strong language with a tone that is authoritative, assuring, and affirmative

What If I Don’t Have a Management Team?

If you’re a start-up, it’s to be expected that you may not have a complete management team. That’s okay. In the process of learning how to write the management team summary of a business plan, you’ll evaluate the skills, experiences, and resources your management team will require. Focus on:

• What type of people do you need as key leaders?
• What duties will each position perform? What authority will be granted to each manager, and what responsibilities will be expected of them?
• What salary levels will be required to attract these team members? What is the salary structure, by position, for the next three years?

Final Steps

Once your summary is complete, we always recommend passing it by your key personnel for their review. This ensures you’ve accurately described the roles, skills, and responsibilities as understood by the team. It will also show your team that you value their opinion, which can help motivate your staff and boost their productivity.  We also recommend reading your management team summary aloud to make sure it flows properly, and that points are well connected and clear to the reader.

With your management team summary complete, you want to demonstrate to lenders, investors, and potential strategic partners that you’ve hired accomplished people and have outlined their specific responsibilities within the company. It also backs up all the data you’ve included elsewhere in your business plan, by demonstrating your team’s expertise and capabilities for your company.  When written concisely and with focus, your management team summary will highlight what sets your business apart from the others.

At Bsbcon, we will help you craft a tailor-made, easily implementable business plan that will act as a road map for your business. Accomplishing everything you’ve dreamed of is easy with Bsbcons consumer-tested, expert panel-approved business plans that outline your steps to success. We provide business plans for bank loans, investors, immigration, and more. Your plan will include a business description, unique selling point, market analysis and strategy, capital requirements, mission statement, and more. Order yours today by clicking HERE .

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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated March 18, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information you need to cover in a business plan sometimes isn’t quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

If you’re looking for a free downloadable business plan template to get you started, download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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Home > Business Plan > Management Team in a Business Plan

Management Team in a Business Plan

…we have put a team together…

What do the Investors look for in the Management Team?

Investors will be particularly interested to obtain answers to the following questions about the management team:

• Does the team know its weaknesses?
• Does each team member have a defined role to play?
• Are there any previous working relationships within the team?
• Is there a common objective for all team members?
• Is there relevant experience relating to the business idea in the team?
• What are the business ownership arrangements?
• Is the team fully committed?

Business Plan Management Team Presentation

There is no set style for the presentation of the management team information in a business plan, but we suggest a simple format similar to that shown below. Full details and complete CV’s can be included in an appendix or submitted later if requested.

For each individual, the format shows details of their name, title and role in the business, and a brief biography of the person. The biography should have particular emphasis on the following characteristics and skills and show how they link back to the business idea discussed in elevator pitch section of the business plan contents article.

• Past successes and failures.
• Education and professional training.
• Management and work experience.
• Special skills related to the business idea.
• Business reputation.

This is part of the financial projections and Contents of a Business Plan Guide a series of posts on what each section of a simple business plan should include. The next post in this series is defining the customer problem .

About the Author

Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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Business Plan Section 3: Organization and Management

This section explains how your business runs and who’s on your team. Learn how to present the information in this section of your business plan.

This section of your business plan, Organization and Management, is where you’ll explain exactly how you’re set up to make your ideas happen, plus you’ll introduce the players on your team.

As always, remember your audience. If this is a plan for your internal use, you can be a little more general than if you’ll be presenting it to a potential lender or investor. No matter what its purpose, you’ll want to break the organization and management section into two segments: one describing the way you’ve set up the company to run (its organizational structure), and the other introducing the people involved (its management).

Business Organization

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.

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.

If you’re applying for funding to start a business or expand one, you may not even have employees to fit all the roles in the organization. However, you can still list them in your plan for how the company will ideally operate once you have the ability to do so.

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 workflow. 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.

For larger companies, an organizational plan with well-thought-out procedures is even more important. This is the best way to make sure you’re not wasting time duplicating efforts or dealing with internal confusion about responsibilities. 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.

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.

Here is where you can also talk about the other levels of employees in your company. Your lower-level staff will carry out the day-to-day work, so it’s important to recognize the types of people you’ll need, how many, what their qualifications should be, where you’ll find them, and what they’ll cost.

If the business will use outside consultants, freelancers, or independent contractors, mention it here as well. And talk about positions you’d want to add in the future if you’re successful enough to expand.

Business Management

Now that we understand the structure of your business, we need to meet the people who’ll be running it. Who does what, and why are they onboard? 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. If you are incorporated, say so, and detail whether you are a C or S corporation. If you haven’t yet incorporated, make sure to discuss this with your attorney and tax advisor to figure out which way to go. Whether you’re in a partnership or are a sole owner, this is where to mention it.

List the names of the owners of the business, what percent of the company each of them owns, the form of ownership (common or preferred stock, general or limited partner), and what kind of involvement they’ll have with day-to-day operations; for example, if they’re an active or silent partner.

Here’s where you’ll list the names and profiles of your management team, along with what their responsibilities are. Especially if you’re looking for funding, make sure to highlight the proven track record of these key employees. 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. Detail his or her education, and any unique skills or experience, especially if they’re relevant to the job at hand. Mention previous employment and any industry awards or recognition related to it, along with involvement with charities or other non-profit organizations.

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. 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.

This section will spell out the compensation for management team members, such as salary, benefits, and any profit-sharing you might be offering. If any of the team will be under contract or bound by non-compete agreements, you would mention that here, as well.

If your company will have a Board of Directors, its members also need to be listed in the business plan. Introduce each person by name and the position they’ll hold on the board. Talk about how each might be involved with the business (in addition to board meetings.

Similar to what you did for your management team, give each member’s background information, including education, experience, special skills, etc., along with any contributions they may already have had to the success of the business. Include the full resumes for your board members in the appendix.

Alternately, if you don’t have a Board of Directors, include information about an Advisory Board you’ve put together, or a panel of experts you’ve convened to help you along the way. Having either of these, by the way, is something your company might want to consider whether or not you’re putting together the organization and management section or your business plan.

NEXT ARTICLE > Business Plan Section 4: Products and Services

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Sample Business Plan

Following is a business plan written by The Business Plan Store. It is posted here with the express permission of the client (Executive names are fictitious)

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