Management Structure and Organization
In this section of your business plan, you will describe the management structure and organization of your business. The key areas to address are:
A. Management Structure
- Legal Structure - Describe the legal structure you have chosen and why. See Choosing a Business Structure for more information.
- Management - Summarize your management philosophy and your management team. Include details about your key managers and why they were chosen. Include a resume in the appendix for each key member of your management team. Tell the reader why your team is uniquely qualified to manage this business.
- Personnel - Summarize your non-management personnel needs. Discuss where and how you recruit new employees, what screening processes you use in hiring, and if you have trouble finding qualified recruits for your business. Also discuss your training procedures for new personnel, and your re-training efforts for existing personnel.
- Outside Services/Advisors - Describe how your management "team" is augmented and enhanced by the use of qualified outside service providers, and discuss the outside services for which you contract.
- Risk Management - Summarize how you will manage risk in your business, including the types of insurance you anticipate needing, estimated cost, and any intellectual property protection or licenses/permits required. Include your estate planning and succession strategies as ways of managing long-term risk.
B. Operating Controls
- Record-Keeping Functions - Describe how you keep control of the major financial functions of your business. Indicate who is responsible for the key activities, and how you as the owner/manager follow-up periodically.
- Other Operations Controls - Describe the key activities that require internal operating controls. Indicate what controls are in place, and who is responsible for ongoing development of controls in each area. Include whether or not you monitor the activities and the control functions. Then tell why the controls that are in place enhance the overall effectiveness of managing your business.
(Used with permission from the NxLeveL Start-up and Entrepreneurs Workbooks. For more in depth information and personalized assistance, we recommend taking the NxLeveL course offered through the Idaho SBDC.)
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