If you are using consultants in your business, list them among this group.
Accountants, lawyers, and technology advisors (such as web developers and infor-
mation technology professionals) are examples of such consultants. For each
member—both in-house and consultants—remember to describe the individual’s
expertise and what kind of service she is performing for your company.
A word to the wise: Given a choice between a good business idea with second-rate
managers and a mediocre business idea with first-rate managers, investors and ven-
ture capitalists prefer the latter.
Describing Employee Benefits
Besides salaries and wages, you must also describe for investors the employee bene-
fits you intend to offer. Employee benefits are defined as an indirect form of compen-
sation in addition to salaries and wages. Some employee benefits are mandated by
law. These include social security, unemployment, and workers’ compensation. Other
employee benefits, such as healthcare, life insurance, and retirement plans (such as
401K plans or employee stock options), are sponsored voluntarily by employers.
If you plan to offer such benefits in addition to salaries and wages, list them here in
this section and give a brief explanation of them. Keep in mind that health benefits
or life insurance premiums will add to your personnel expenses and will be included
in your financial plan.
84
Write a Business Plan In No Time
y
To do list
Write a narrative description for each management position within your
company
Draw up an organizational chart showing the management and reporting
structure of your company
Writing Your Description and Creating an
Organizational Chart
You should describe your organizational structure using both a narrative description
and an organizational chart.
You should construct a narrative description—no more than a few paragraphs—of
each person on your team and include
His position title within the company
The roles, duties, and responsibilities of that position—what he will be doing,
whom he will be overseeing, and to whom he will report
Describe any previous experience or expertise that relates directly to the posi-
tion the individual fills in your company—what he did, how long he did it,
for whom he did it
Any previous successes in the area he will be working in or responsible for
within your company
The individual’s education or training experience
Each individual’s narrative description should be no longer than a page. Include his
full résumé in the Supporting Documents section of your plan.
Another way to present the organizational structure of your company is by includ-
ing an org chart, or organization chart, in this section of your plan. An organization
chart is a simple diagram showing the various jobs and functions found in a com-
pany and their relationships to one another. It graphically shows how the main
company functions are divided, and gives the reader a clear definition of the roles
and responsibilities of the management team and key personnel of your company.
Here’s a sample organization chart for a small retail business:
Retail Catalog House
PRESIDENT
Marketing Sales Operations Administration
Marketing Manager Sales Manager Operations Manager Office Manager
PR Person Salesperson 1 Customer Service Rep Bookkeeper
Administrative Assistant Salesperson 2 Shipping and Receiving Clerk
Many good charting programs for org charts are on the World Wide Web. You can
download a free charting program at www.smartdraw.com/specials/orgchart.asp.
When assigning roles and duties to your management team and key personnel,
don’t make the mistake of assigning responsibility without authority. Your manager
or supervisor must have both. Assigning responsibility without authority is a recipe
for failure in your organization.
CHAPTER 6 Organizational Structure and Management Team
85

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