The Org Chart
Set up an organizational chart. Having a visual illustration makes it easier for both you and your readers to understand the organization and see any possible gaps.
Include either a table or a description identifying your personnel costs. These costs are also used in your profit and loss statement described in the previous session. You can either break it down by individual, or department. Include the title, department or group salary level and then in a separate line add 15%-20% to cover employee benefits, taxes, etc. (also referred to as your Payroll Burden.) Extend this table to cover then next 2-3 years.
You can also cover your facility information in this section. Describe the type of space your business requires, the costs and lease length and terms, your time table for moving to larger facilities, and any other pertinent information.
These are the basic areas that need to be covered in your management section, but there is additional information you can include if you think it would help an investor make the decision to fund your plan. For example, if a large part of your strategy is to gain market share based on excellent customer service, then you may want to include a section about your Customer Service plan. Or, if you are starting a business in an industry that has notorious difficulty's keeping technical staff, then you may want to include your Human Resources and Benefits plan to layout your strategy for getting and keeping top talent.
Other Things to Think About
Some other things you should keep in mind when writing this section include:
- Do any of your staff members have non-compete agreements they are bound to? Are there any other limitations that should be considered?
- Do your outside resources have experience in your particular industry?
- Do your outside resources or your existing management staff have experience with startups?
- Do you have stockholders, and if so will they have any say so in management decisions?
- What role will your investors play?