A business plan is a document that personifies your business idea and portrays how you want to make it a reality. A business plan is your business identity; it is a document that confirms the existence of a vision that has potential. A business plan is your roadmap to success. It does not let you succumb to the haphazard business world. Your business plan is your legacy. Therefore, a business plan must identify you, the owner of the idea. The business plan, as much as it is your business identity, is also the one document declaring you.
Once you have finalized your Company Overview, refined your Industry Analysis and carved out your Competitive Analysis, it’s time to write a little about your team and you. This is where you get to show your potential on paper. The Management Section may seem relatively straightforward. Well, the good news is that it is just that. This is where pride should shine and arrogance is welcomed. Of course, you should not get carried away. After all, this is a professional document. So try not to mention how much time you spend in front of the mirror admiring yourself. You can almost hear the beat of “I’m Sexy and I Know It” but no. This is not the place for that. Let’s just turn that off before we move on.
“The problem with introspection, is that it has no end” – Philip K. Dick
The Management Section is where you get to tell your readers who your team is, what you bring to the table and why they should be paying any attention to you in the first place. A potential investor reading your business plan will come across this section and will finally understand who he/she is trusting with their money. If your business idea is good, your business plan is solid, you have collected convincing information your investor may be ready to approve your loan, but if he doesn’t see the same flair he/she saw in the rest of the business plan, you just lost your deal. Even though it may not seem relative, it is critical to get the Management Section right.
“The more reflective you are, the more effective you are” – Hall and Simeral
So, how hard can it be? Well, it’s not actually. The Management Section does not need much research work, but it requires facts, plans and action points. This is where you will present yourself in such a way that can convince investors that they can trust you with their money and that you know what you’re talking about. The investors want to know your background, how you deem yourself qualified to be running this business, your leadership skills and how you are as an individual. They also want to know about your team and how you plan to build your organizational hierarchy.
Here are a few tips on what you can do to spruce up your Management Section:
1. About You
Go ahead, boast about yourself, in as much a professional tone as you can. Well, all you really need to write in the business plan is who you are, a brief about your academic background and how you will contribute in order to get your plans materialized. Anyone reading the business plan wants to see how serious you are. A good idea will only get you so far. You must look the part. Get the job done!
“Always remember, your focus determines your reality.” – George Lucas
2. Your Team
This subsection is important only if you already have a team. If you do not have a team, then this section is irrelevant. However, if you do have a team, then it is time that you demonstrate their capabilities. This does not mean that you should brag about all 50 members of your team. An investor will not be interested in what the janitor will be doing. Keep this subsection limited to the major roles in your business. Writing about 3-5 people is more than enough.
3. Hiring Plans
Your idea needs to be executable and anyone knows that a business cannot be run by one individual. It is always important to demonstrate that your plan is executable. Therefore, this section, a few paragraphs as it may be, will show that you have an idea, you know what resources you need and how to get them to start working. This section should talk about your plans to hire people in certain critical positions in your organization as well as any plans to outsource staff (if that’s how you want to do business).
“If you want to go fast, go alone, if you want to go far, go together” – African Proverb
4. Organizational Hierarchy
A simple organogram chart will do just fine for this section. Show all the major roles in your organization and the formal/informal reporting structure in your organization.
Express yourself freely, let your passion show, your commitment felt and your spirit glow!
