One of the satisfaction of carrying out the function of a consultant for corporate organizations is been able to provide solution, supervise implementation and enjoy the improvement and success story that became an experience as a result of your effort.
Someone asked me how he should write the management summary section of his business plan and I thought to share my thoughts and response with you.
First of all you must understand that the management summary section of your business plan describes how your business is structured, introduces who is involved, and explains how the business will be managed.
This section backs up all of the data you’ve included elsewhere in the business plan by demonstrating the expertise of the team and resources behind your company.
Secondly, you must ensure that the management summary section covers all of the relevant information about personnel, anticipated growth and how the company is organized,you may break it down into the following subsections:
- Business Structure: What business structure will your company take, a sole proprietorship, a limited liability company , a partnership or a corporation? This determination is critical Aa it will form the basis for the rest of the areas in this section.
- Management Team: Who will oversee the company? If you’re forming a corporation, who will make up the Board of Directors? Try to showcase their profile and skilled competence. An organizational chart can be a good visual to use to illustrate this element.
- Management Team Gaps: What are your anticipated personnel needs? How will each role, once filled, contribute to the success of your company?
- Other Personnel: Aside from your Board and employees, what external support will help the business function? This could include attorneys, accountants, public relations professionals, administrative support and even an external advisory board.
- Personnel Growth Plan: What are the salaries of each person to be involved with the company for the next three years? This should provide a bottom line cost for personnel expenditures.
The management summary helps the reader understand who is behind the company and what personnel resources may be needed in the future.
Here are a few tips for ensuring that the management summary gives the reader the information they need to accurately analyze your company’s potential.
Explain the Intricacies
Very rarely does a team function exactly as outlined in an organizational chart. Describe how key personnel will interact and how roles may cross to provide a well-rounded picture of the overall management.
Relate Personnel to Business Activities
Your goal should be to directly attach personnel to an individual role and the overall success of the company. You can accomplish this by relating the specific experience of each person to the role they will play in the business.
In the management summary section, focus only on the most relevant biographical information that is most important to your business plan. Put the full bios in your appendix if you must, although it’s absolutely not necessary in my personal opinion.
Let the Team Review
When you have drafted the summary, give your key personnel a chance to review it. This will give you a chance to confirm that you’ve accurately described the roles and responsibilities as understood by the team.
- Conclusively, Always seek a second opinion, get someone on your team to verify the accuracy of the information you have documented. A professional guidance helps you avoid mistakes.
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