Business Plan Writing: Organisation Design & Management Structure
Updated: Dec 12, 2019
A thorough business plan introduces its readers to the team that will be responsible for day-to-day operations and helps them understand how your company is or will be structured.
It provides critical information for those looking for evidence that your staff has the necessary experience, skills, and pedigree to realise the objectives detailed in the rest of your business plan.
This section generally is separated into two parts. The first is concerned with the organisation as a whole and gives readers an overview of the company structure, which is an excellent opportunity for the reader to lift the roof off your office and peer into its inner workings.
The second part focuses specifically on your management team and introduces readers to each member — your chance to impress them with the many accomplishments pinned to your organisation’s management team.
This section may seem less important than some of the other parts of your business plan, but the truth is that your people are your business. If they’re highly competent and accomplished, the implication is that so is your business.
Of course, if you’re a sole proprietor with no management structure or any employees to speak of, this section is unnecessary, other than to talk about yourself and your achievements.
Describe Your Company’s Organisational Structure
This first step illustrates the positions in your organisation’s employee hierarchy and how they all relate to each other.
As a guide, this is usually done graphically, using an organisational chart, or “org chart” for short, people tend to use a Microsoft tool, i.e. PowerPoint or Excel to help.
Organisation Charts typically follow a top-down hierarchy, starting with your CEO/ Managing Director in the top box at the top of the page. Lines extend down from that person’s name to boxes containing the names of the CEO’s direct reports.
We have included an example organisational chart for your reference below and this is for guidelines only.
Those managers then have lines extending to those people that report to them, and so on, down to your lowest staff positions.
This section will give your readers a quick understanding of your management and governance structure, the size of your organisation, as well as your lines of control and communication.
Your Management Team
Next, you’re going to discuss the company’s management team, starting with the owners.
If the company structure is a or some other multi-owner arrangement, you’ll want to include information for every member and their percentage of ownership and ongoing involvement in the company.
It’s important to discuss how ownership interests are split, their responsibilities, what they did previously before securing their current position, and how they came to be involved with the company.
Here it would help if you talked about some of your critical team members. These are the people that are directly responsible for large portions of your business operations.
You should introduce them and talk about their experience, their qualifications, their previous companies and achievements, their role in the company, and any special skills they bring with them.
Perhaps they’re an entrepreneur business coach or exclusive advisor or industry specialist to help you on your growth journey.
For companies with a Board of Directors or Governance Structure or Advisory Board, then this is an ideal opportunity to introduce them to your readers.
Spotlight on the Wider Team Structure
Now you’ve showcased the management team in its entirety. You can provide brief bios for secondary members and talk at length about how the team’s combined skills complement each other, and how they amplify the team’s effectiveness.
It’s also important to point out any gaps in the knowledge your team is currently suffering. Your readers will likely be savvy enough to pick up on any holes that exist.
Therefore, you’ll want to get out ahead of these criticisms and demonstrate that you’re already aware of the positions and complementary skill sets your management team still requires and how you plan to address the knowledge gaps with future hires.
Need Help? We at Noirwolf are Business Plan Specialists
Creating your comprehensive investor-ready business plan takes planning, research, time, and a herculean effort. If at any point the work becomes too much to handle, we can step in to assist.
Want an expert “second opinion” before you start to create your business plan or financial forecasts? Let’s talk!
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