PREPARING THE MANAGEMENT AND OWNERSHIP SECTION OF A BUSINESS PLAN:

One of the most important sections of the business plan is the management and ownership section, which describes your management team and staff, their demographics, their skills, and educational background. Management and ownership section helps the readers to know about your management team in detail and also are they capable enough to take your business towards success.

You can break this section into four parts:

• Ownership structure
• Internal management team
• External management team
• Human resources needs

Ownership structure: This part shows the information about the owner and business and your business structure. Describe your business is a sole proprietorship, corporation, partnership or limited liability company. You can summarize this part in one or two sentences. Make sure to avoid adding too much relevant information otherwise your business plan is considered as worthless.

Internal management team: The biggest mistake a business plan writer do is that he or she adds too much irrelevant information about the management team in management and ownership section. This section only contains the most relevant past experience of the management team; avoid adding the whole resumes of the team. If you want to add resumes you can add in the Appendix of your business plan.

External management team: This section contains the information about the business’s advisors and/or Board of directors. Explain their roles in your business and their business information. You can also put information about all the professional services you will use such as, lawyers, auditors, IT professionals, etc.

Human resource needs: Your future hiring process is illustrated in this part. This section also describes the salaries and benefits you will introduce for your management team in future.

Be logical and realistic when creating the management and ownership section of the business plan. Be concise; avoid adding too much irrelevant information. Be selective; avoid using superlatives. Remember this section is of great interest to many potential investors and lenders.

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