this part of the business plan provides profiles of key managers

How to Write the Management Team Section in a Business Plan + Example

Written by Dave Lavinsky

Over the last 20+ years, the professional business plan writers at Growthink have written business plans for over 4,000 companies and hundreds of thousands of others have used the best business plan template and our other strategic planning materials.

From this vast experience, we’ve gained valuable insights on how to write a business plan effectively , specifically in the management section.

What is a Management Team Business Plan?

A management team business plan is a section in a comprehensive business plan that introduces and highlights the key members of the company’s management team. This part provides essential details about the individuals responsible for leading and running the business, including their backgrounds, skills, and experience.

It’s crucial for potential investors and stakeholders to evaluate the management team’s competence and qualifications, as a strong team instills confidence in the company’s ability to succeed.

Why Your Management Team is Important

The Management Team section of your plan details your team members.

This section is critical since the best plans in the world will not be executed if the team is incapable. By proving you have a strong team, you are signaling to investors that you can in fact achieve the plans and milestones included in your business plan.

Your management team plan has 3 goals:

• To prove to you that you have the right team to execute on the opportunity you have defined, and if not, to identify who you must hire to round out your current team
• To convince lenders and investors (e.g., angel investors, venture capitalists) to fund your company (if needed)
• To document how your Board (if applicable) can best help your team succeed

What to Include in Your Management Team Section

A well-defined management team section has three sub-sections:

Management Team Members

For each management team member, detail their name, title and professional background.

Their backgrounds are most important in telling you and investors they are qualified to execute. Detail what positions they’ve held and what they accomplished in those positions. For example, by saying Jane Smith was the former Vice President of Manufacturing for XYZ company where she scaled manufacturing from 1,000 to 10 million products per month would be very impressive if your company was a startup manufacturer.

Importantly, try to relate your team members’ past job experience with what you need them to accomplish at your company. For example, if a former high school principal was on your team, you could state that their vast experience working with both teenagers and their parents will help them succeed in their current position (particularly if the current position required them to work with both customer segments).

This is true for a management team for a small business, a medium-sized or large business.

Management Team Gaps

If your internal management team has gaps (key people you expect to hire in the future), detail what position(s) is/are missing and who will fill the positions.

This could read like a job description. For instance, you might say that we will soon hire a VP of Sales. This person will have 10 years’ experience selling to big box retailers and has managed at least 100 sales representatives at a time in their career.

Below are some key positions that you might include in your own business plan:

• Chief Executive Officer
• Chief Operating Officer
• Chief Financial Officer
• Chief Technology Officer
• Sales Manager
• Chief Marketing Officer
• Digital Marketing Manager
• Human Resources Management
• Business Development Manager
• Account Management/Customer Service Manager
• Key Managers Staff

Board Members

If you have a Board of Directors or Board of Advisors, include the bios of your Board members here.

A Board of Directors is a paid group of individuals who help guide your company. Typically startups do not have such a board until they raise VC funding .

If your company is not at this stage, consider forming a Board of Advisors. Such a board is ideal particularly if your team is missing industry expertise and/or experience in certain areas. An advisory board includes 2 to 8 individuals who act as mentors to your business. Usually, you meet with them monthly or quarterly and they help answer questions and provide strategic guidance. You typically do not pay advisory board members with cash, but offering them options in your company is a best practice as it allows you to attract better board members and better motivate them.

Management Team Business Plan Examples

Below are examples of how to include your management section in your business plan.

Key Team Members

Jim smith, founder & ceo.

Jim brings 15 years of experience in online software development, having co-founded two successful online businesses. His first company specialized in developing workflow automation software for government agencies and was acquired by a public company in 2003. Jim’s second company developed a mobile app for parents to manage their children’s activities, which was acquired by a large public company in 2014. Jim holds a B.S. in Computer Science from MIT and an M.B.A. from the University of Chicago.

Bill Jones, COO

Bill brings 20 years of sales and business development experience from working with several startups that he helped grow into large businesses. His strong operational skills and strategic mindset will be instrumental in driving the company’s growth. Bill holds a B.S. in Mechanical Engineering from MIT, where he also played Division I lacrosse for four years.

Jane Doe, CTO

With over 10 years of experience in software engineering and architecture, Jane is a seasoned technology leader. She has a proven track record of delivering innovative solutions and leading high-performing engineering teams. Jane’s deep technical expertise will be crucial in developing and implementing our cutting-edge technology. She holds a B.S. in Computer Science from Stanford University and an M.S. in Computer Science from MIT.

Mike Lee, CFO

Mike is a seasoned financial executive with over 15 years of experience in financial planning, analysis, and strategy. He has a strong track record of driving financial performance and raising capital. Mike’s expertise will be invaluable in managing our financial operations and securing the necessary funding to fuel our growth. He holds a B.S. in Accounting from the University of California, Berkeley and an M.B.A. from Harvard Business School.

We currently have no gaps in our management team, but we plan to expand our team by hiring a Vice President of Marketing to be responsible for all digital marketing efforts.

Vance Williamson, Founder & CEO

Prior to founding GoDoIt, Vance was the CIO of a major corporation with more than 100 retail locations. He oversaw all IT initiatives including software development, sales technology, mobile apps for customers and employees, security systems, customer databases/CRM platforms, etc. He has a B.S. in computer science and an MBA in operations management from UCLA.

Bill Cunningham, COO Bill brings over 25 years of experience in operations management and supply chain logistics. Previously, he held key positions at [previous company] where they successfully implemented lean manufacturing practices, optimized inventory management, and streamlined distribution processes. His expertise in [specific area of expertise, e.g., Six Sigma, Lean methodologies] will be invaluable in ensuring efficient operations and cost-effectiveness.

Carol Wingren, CFO

Carol Wingren is a seasoned financial executive with a proven track record in financial planning, analysis, and strategy. They have a deep understanding of [specific industry or financial area, e.g., e-commerce, venture capital]. Their expertise in [specific skill, e.g., financial modeling, fundraising] will be crucial in securing funding, managing cash flow, and driving long-term financial growth.

Sally Smiles, CMO

Sally Smiles is a marketing visionary with a passion for [specific marketing area, e.g., digital marketing, brand strategy]. They have a proven ability to develop and execute innovative marketing campaigns that drive customer acquisition and brand loyalty. Their experience in [specific marketing tool or platform, e.g., SEO, social media] will be instrumental in increasing brand awareness and generating leads.

We currently have two gaps in our Management Team:

• A VP of Sales with 10 years of experience managing sales teams, overseeing sales processes, working with manufacturers, establishing new accounts, working with digital marketing/advertising agencies to build brand awareness, etc.
• In addition, we need to hire a VP of Marketing with experience creating online marketing campaigns that attract new customers to our site.

A strong management team section is crucial for a compelling business plan. It showcases the expertise and experience of the individuals driving the company’s growth. By highlighting their qualifications, accomplishments, and specific roles, you instill confidence in potential investors and stakeholders. A well-crafted management team section not only demonstrates your team’s ability to execute your business plan but also strengthens your company’s overall credibility and attractiveness.

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How To Write the Management Section of a Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Ownership Structure

Internal management team, external management resources, human resources, frequently asked questions (faqs).

When developing a business plan , the 'management section' describes your management team, staff, resources, and how your business ownership is structured. This section should not only describe who's on your management team but how each person's skill set will contribute to your bottom line. In this article, we will detail exactly how to compose and best highlight your management team.

Key Takeaways

• The management section of a business plan helps show how your management team and company are structured.
• The first section shows the ownership structure, which might be a sole proprietorship, partnership, or corporation.
• The internal management section shows the department heads, including sales, marketing, administration, and production.
• The external management resources help back up your internal management and include an advisory board and consultants.
• The human resources section contains staffing requirements—part-time or full-time—skills needed for employees and the costs.

This section outlines the legal structure of your business. It may only be a single sentence if your business is a sole proprietorship. If your business is a partnership or a corporation, it can be longer. You want to be sure you explain who holds what percentage of ownership in the company.

The internal management section should describe the business management categories relevant to your business, identify who will have responsibility for each category, and then include a short profile highlighting each person's skills.

The primary business categories of sales, marketing , administration, and production usually work for many small businesses. If your business has employees, you will also need a human resources section. You may also find that your company needs additional management categories to fit your unique circumstances.

It's not necessary to have a different person in charge of each category; some key management people often fill more than one role. Identify the key managers in your business and explain what functions and experience each team member will serve. You may wish to present this as an organizational chart in your business plan, although the list format is also appropriate.

Along with this section, you should include the complete resumés of each management team member (including your own). Follow this with an explanation of how each member will be compensated and their benefits package, and describe any profit-sharing plans that may apply.

If there are any contracts that relate directly to your management team members, such as work contracts or non-competition agreements, you should include them in an Appendix to your business plan.

While external management resources are often overlooked when writing a business plan , using these resources effectively can make the difference between the success or failure of your managers. Think of these external resources as your internal management team's backup. They give your business credibility and an additional pool of expertise.

Advisory Board

An Advisory Board can increase consumer and investor confidence, attract talented employees by showing a commitment to company growth and bring a diversity of contributions. If you choose to have an Advisory Board , list all the board members in this section, and include a bio and all relevant specializations. If you choose your board members carefully, the group can compensate for the niche forms of expertise that your internal managers lack.

When selecting your board members, look for people who are genuinely interested in seeing your business do well and have the patience and time to provide sound advice.

Recently retired executives or managers, other successful entrepreneurs, and/or vendors would be good choices for an Advisory Board.

Professional Services

Professional Services should also be highlighted in the external management resources section. Describe all the external professional advisors that your business will use, such as accountants, bankers, lawyers, IT consultants, business consultants, and/or business coaches. These professionals provide a web of advice and support outside your internal management team that can be invaluable in making management decisions and your new business a success .

The last point you should address in the management section of your business plan is your human resources needs. The trick to writing about human resources is to be specific. To simply write, "We'll need more people once we get up and running," isn't sufficient. Follow this list:

• Detail how many employees your business will need at each stage and what they will cost.
• Describe exactly how your business's human resources needs can be met. Will it be best to have employees, or should you operate with contract workers or freelancers ? Do you need full-time or part-time staff or a mix of both?
• Outline your staffing requirements, including a description of the specific skills that the people working for you will need to possess.
• Calculate your labor costs. Decide the number of employees you will need and how many customers each employee can serve. For example, if it takes one employee to serve 150 customers, and you forecast 1,500 customers in your first year, your business will need 10 employees.
• Determine how much each employee will receive and total the salary cost for all your employees.
• Add to this the cost of  Workers' Compensation Insurance  (mandatory for most businesses) and the cost of any other employee benefits, such as company-sponsored medical and dental plans.

After you've listed the points above, describe how you will find the staff your business needs and how you will train them. Your description of staff recruitment should explain whether or not sufficient local labor is available and how you will recruit staff.

When you're writing about staff training, you'll want to include as many specifics as possible. What specific training will your staff undergo? What ongoing training opportunities will you provide your employees?

Even if the plan for your business is to start as a sole proprietorship, you should include a section on potential human resources demands as a way to demonstrate that you've thought about the staffing your business may require as it grows.

Business plans are about the future and the hypothetical challenges and successes that await. It's worth visualizing and documenting the details of your business so that the materials and network around your dream can begin to take shape.

What is the management section of a business plan?

The 'management section' describes your management team, staff, resources, and how your business ownership is structured.

What are the 5 sections of a business plan?

A business plan provides a road map showing your company's goals and how you'll achieve them. The five sections of a business plan are as follows:

• The  market analysis  outlines the demand for your product or service.
• The  competitive analysis  section shows your competition's strengths and weaknesses and your strategy for gaining market share.
• The management plan outlines your ownership structure, the management team, and staffing requirements.
• The  operating plan  details your business location and the facilities, equipment, and supplies needed to operate.
• The  financial plan  shows the map to financial success and the sources of funding, such as bank loans or investors.

SCORE. " Why Small Businesses Should Consider Workers’ Comp Insurance ."

• Business Planning

How to Write Management Team Section in Business Plan

Written by Vinay Kevadiya

Published Oct. 9 2024 · 11 Min Read

Building and aligning a solid management team is crucial for every business’s success.

Steve Jobs once said, " Great things in business are never done by one person; they're done by a team of people ."

Therefore, to succeed in your business, you must plan it with a strong focus on your management team.

A strong management team not only contributes to your business success but helps you secure funding from investors and communicate clear intentions to stakeholders regarding your goals.

But what exactly is the management team in a business plan? What is its importance? How do you write a management team in a business plan? Well, you will get all the answers in this blog.

Let’s get started.

What is a management team in a business plan?

Management team in a business plan is a section that outlines the main responsibilities of operational teams, key managers, and employees for leading the company toward its desired goals.

The purpose of including the management team in a business plan is to:

• Identify management team gaps
• Highlight management team members
• Showcase the relevant experience and expertise of each member
• Demonstrate how the team’s skills align with the company’s objectives
• Illustrate the team's ability to adapt to challenges and seize opportunities

Moreover, this management section, highlighting the management team, builds confidence in potential investors and stakeholders by showcasing the company's ability to execute its strategies and succeed.

Why is the management team section important for a business plan?

A well-defined management team provides a solid foundation for effective decision-making and strategic guidance that helps your business to achieve its desired goal.

Here are some more reasons that make a management section crucial in a business plan:

Cultivates investor confidence

69% of venture capitalists say they won't invest in a new business without first reviewing its business plan .

This means investors don’t just focus on your idea—they want to know if your team can successfully execute the plan.

A capable management team assures them that the business can navigate challenges and seize opportunities efficiently. Such confidence boosts their trust in your business, making it more likely that they will invest.

Streamlines strategy execution

A management team with skilled and experienced executives paves the way to your goals more smoothly.

Their expertise enables them to execute your business strategy effectively, helping you achieve your desired outcomes efficiently.

Additionally, their knowledge and experience equip your business to handle challenges that arise during strategy execution. They also can turn setbacks into opportunities.

Provides clear direction

A well-defined management team provides clear leadership and direction. This clarity ensures that everyone in the organization understands their roles and goals.

A clear and right direction benefits your business by:

• Enabling easy execution of business plans
• Offering a clear understanding of the business structure and key members
• Improving team alignment towards common objectives
• Enhancing decision-making processes across the organization
• Streamlining communication between departments
• Promoting accountability and ownership within the team

Manages risk efficiently

Business plans are designed to minimize risks and ensure smooth operations. Including a management team in your business plan can help reduce your business's risks.

An experienced team can spot potential challenges and create strategies to overcome them. Importantly, the management team is also valuable in predicting upcoming risks, which helps your business prepare to tackle them effectively.

Foster team cohesion

A successful business thrives on collaboration and unity. When your team is aligned and working towards the same goals, it increases the chances of achieving success more quickly.

That’s why Helen Keller famously said, “Alone, we can do so little; together, we can do so much.” By including the management team section in the business plan, you foster team cohesion, which ultimately benefits your business with:

• More productivity
• Enhance collaboration
• Quick solution to challenges
• Right execution of the business plan

How to write the management team section of a business plan?

To write a management team section in a business plan, go through the following step-by-step process:

Step 1: Team introduction

Start by introducing your internal management team and key players who will lead your business. Include the names of the core team members, such as board members, managers, HRs, sales head, and department heads.

Provide a brief overview of their background, showcasing their qualifications and areas of expertise that will support the company’s goals. Moreover, you should also include following aspects in the introduction section:

• Name and position
• Job description
• Brief background and relevant experience

Step 2: Role clarity

Define the specific roles and responsibilities of each management team member. Doing so ensures that stakeholders understand who is responsible for which areas of the business.

Further, the clear role of each member defines how they contribute to the company's objectives and work towards achieving business objectives. Make sure you include the following aspects in your role clarity section:

• Specific responsibilities
• Key contributions to business objectives

Step 3: Showcase expertise

Highlight the experience, qualifications, and key achievements of each management team member. This demonstrates the capability of your team and how their skills align with the business strategy.

Showcasing their experience and expertise demonstrates their capabilities to stakeholders, which strengthens their confidence in the team’s ability to drive growth and navigate challenges.

Here’s what you can add in the expertise section:

• Professional experience
• Relevant qualifications and skills
• Educational background
• Notable achievements

Step 4: Include organizational structure

Present your company’s hierarchy to illustrate how decisions are made and how each department functions.

Including an organizational chart helps readers understand the reporting structure and the flow of decision-making authority.

You can include:

• An organizational chart that provides overview of team
• Reporting structure
• Explanation of decision-making authority

Step 5: Describe team collaboration

Outline how the management team works together to achieve business goals. Highlight tools or platforms used for collaboration, communication methods, and the regularity of meetings.

This highlights the role of teamwork in the company’s success. Additionally, explaining team collaboration to stakeholders instills confidence that everyone is aligned and working towards common goals.

You should include:

• Which communication tools you’re using (e.g., Slack, Microsoft Teams)
• Collaboration methods
• Regular meetings or review processes

Step 6: Exhibit achievements

Highlight the major accomplishments of the management team. This includes awards, recognition, completed projects, or case studies that show your team’s ability to execute plans effectively.

Exhibiting achievements will ensure your team has experience working in the same field and has the capability of bringing results. You can include:

• Awards or recognitions
• Major projects or milestones
• Success stories

To demonstrate your achievement and impress your stakeholders.

Step 7: Showcase identified gaps

Include identified gaps in your management team section in a business plan and explain how you plan to address them. This shows foresight and preparedness, especially if you plan to hire new talent.

Demonstrate the following aspects to showcase your gaps:

• Missing roles or skills
• Plan to fill gaps (e.g., recruitment or external support)
• Timeline for addressing gaps

Step 8: Include your long-term vision

Outline how your management team will contribute to the long-term success and growth of the business. Discuss strategic goals and the role of the management team in achieving these milestones.

Here’s what you can include:

• Strategic goals
• Growth roadmap
• Role of the team in future success

The steps to write the management team section in a business plan concludes here. Remember, following these steps ensures you present a strong, well-structured team to stakeholders.

However, if you need help with including a company overview in a business plan, check out our blog that outlines effective ways to write a company overview in a business plan .

Example of a strong management team section in a business plan

Management team of freshserve—food delivery app.

FreshServe's management team combines experience, strong educational background, industry expertise, and leadership. Below is an overview of our internal and external teams.

Internal Management Team

1. CEO (Chief Executive Officer) – Sarah Mitchell

Responsibilities: Oversees overall company operations, sets strategic direction, and leads expansion efforts. Manages investor relations and drives key business partnerships.

Qualification: MBA, Harvard Business School

Experience: 15 years in tech startups, including leading a food tech startup that was successfully acquired.

Achievement: Expanded previous startup to 10 cities within 2 years, driving $100M in annual revenue.

2. COO (Chief Operating Officer) – David Lee

Responsibilities: Manages daily operations, logistics, and ensures the smooth execution of FreshServe's food delivery services. Oversees customer service and logistics teams.

Qualification: BS in Operations Management, University of California, Berkeley

Experience: 12 years in operations and logistics management in food delivery and e-commerce.

Achievement: Scaled logistics operations of a delivery company, achieving a 98% on-time delivery rate.

3. CMO (Chief Marketing Officer) – Laura Garcia

Responsibilities: Leads all marketing, branding, and customer acquisition efforts. Develops growth strategies, digital marketing campaigns, and partnerships with restaurants.

Qualification: BA in Marketing, Stanford University

Experience: 10 years in digital marketing, previously working with a major food delivery service.

Achievement: Increased user base of previous employer by 300% in 18 months through targeted digital campaigns.

4. CTO (Chief Technology Officer) – Raj Patel

Responsibilities: Oversees all technological development, including mobile app development, software updates, and security. Manages the tech team and ensures a seamless customer experience.

Qualification: MS in Computer Science, MIT

Experience: 14 years in software development and app creation, specializing in food tech and delivery systems.

Achievement: Led the development of an AI-powered logistics system that reduced delivery times by 25%.

5. CFO (Chief Financial Officer) – Lucas Daniels

Responsibilities: Responsible for managing company finances, including budgeting, forecasting, and financial planning. Oversees investor relations and capital raising efforts.

Qualification: MBA, CFA certification

Experience: 10+ years in financial management, particularly with high-growth tech startups.

Role in FreshServe: Will manage financial strategy and ensure financial sustainability as FreshServe expands. A CFO with experience in scaling tech-based companies is ideal for this role.

6. Product Manager – Emily Turner

Responsibilities: Leads the product development and innovation process for the FreshServe app. Ensures customer feedback is integrated into product updates and improvements.

Qualification: BS in Product Management, University of Michigan

Experience: 7 years in product management, particularly in tech startups.

Achievement: Launched two successful app updates that improved user retention by 40%.

Organization Structure

Here’s the breakdown of organizational structure of FreshServe, including its decision-making hierarchy:

1. Sarah Mitchell (CEO):

• Leads the company and oversees all the departments. Everyone in the organization ultimately reports to the CEO.

2. Raj Patel (CTO):

• Reports to Sarah Mitchell (CEO).
• Oversees technology and product development.
• Emily Turner (Product Manager) reports directly to Raj Patel.

3. David Lee (COO):

• Manages day-to-day operations and logistics.
• James Morris (Logistics Manager) reports directly to David Lee.
• Rachel Brown (Customer Service Representative) reports to James Morris.

4. Laura Garcia (CMO):

• Handles marketing and customer acquisition.
• John Anderson (Social Media Manager) reports directly to Laura Garcia.

5. Lucas Daniels (CFO):

• Manages financial planning, budgeting, and investor relations.

External Management Team (Advisory Board)

1. Jessica Adams – Legal Advisor

Responsibilities: Provides legal and strategic guidance on contracts, intellectual property, and regulatory compliance, ensuring FreshServe adheres to all legal standards.

Experience: 18 years in corporate law, specializing in tech startups and M&A.

2. Michael Carter – Financial Advisor

Responsibilities: Assists with financial planning, investment strategies, and capital raising efforts. Advises on budgeting, cash flow, and investor relations.

Experience: 20 years in finance, former CFO at MealFast.

3. Angela Wright – HR Consultant

Responsibilities: Guides on building the internal HR structure, hiring strategies, and employee retention programs. Ensures the company attracts and retains top talent.

Experience: 15 years in human resources management, specializing in tech startups.

Wrapping up

We've covered everything you need to know about the management team section of a business plan.

So, if you’re planning to write a business plan, include the key elements we've discussed in the blog to impress your stakeholders or investors and showcase your team effectively.

Remember, the management team is just a section of a business plan, and you need a complete business plan for success. You can rely on Bizplanr , an AI business plan generator to craft an excellent business plan.

By answering a few questions, you can design your business plan in minutes; from the management team to the conclusion, this platform will design the business plan that will provide tangible results.

Get Your Business Plan Ready In Minutes

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Frequently Asked Questions

What should be included in the management team section?

Include team members’ names, roles, qualifications, experience, and achievements. Highlight their responsibilities and how they contribute to the business’s success.

How do you structure a management team?

Structure the team based on key roles such as CEO, CTO, COO, and department heads like marketing, sales, and finance. Each role should have clear responsibilities aligned with company goals.

What is the role of a management team?

The management team oversees the company's day-to-day operations, strategic planning, and execution to achieve business goals.

What is the company's management team profile?

It summarizes the key executives, their backgrounds, and how their skills and experience contribute to the company’s success.

What’s the difference between a management team and an advisory board?

The management team handles daily operations and strategy execution, while advisory board members offer external guidance and expertise but don't manage day-to-day tasks.

What if my business lacks experienced management?

Address this by hiring experienced consultants and advisors or seeking external partners. Emphasize the skills and potential of the existing team and outline plans for filling gaps.

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.

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How to Write Management Team Section in a Business Plan

Free Ultimate Guide On Writing A Business Plan

• May 1, 2024

A business is as efficient as its team and its management. Therefore, it becomes important for business owners to build a structured management team that achieves the objectives and goals set by the organization.

Andrew Carnegie, an American steel magnate, beautifully summarized it –

“Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives.”

A business management plan helps build an efficient team and formalizes business operations. This helps businesses streamline strategies to achieve their goals.

So, if you are a business owner who is looking to formalize their business structure and write the management team section in their business plans, this guide is for you.

Here’s a sneak peek into what you’ll learn:

Sounds good? Let’s dive in.

What is the Management Section of a Business Plan?

The management section of a business plan is an in-depth description of a business’s team, its structure, and the owners of a business.

The section discusses ‌who is on the management team—internal and external, their skill sets, experiences, and how meaningfully they would contribute to an organization’s mission statement and goals.

Now that we have defined what the management section of a business plan is, let’s understand why it is so important.

Importance of a Business Plan Management Section

The management section helps you to

• Showcase leadership: The management team section helps you showcase how qualified and experienced team you have.
• Clarify team roles: It outlines who does what in your team, ensuring everyone knows their key performance areas and works together towards the same goals.
• Attract investors: Present your team in the best possible way, as it is one of the key factors in making the final investment decision.

What to include in the Management Section of a Business Plan?

Now that you know why exactly a management section in the business plan is necessary, let’s move ahead with what to include in it:

1. The Management Team

An organization’s entire management team can be divided into parts — the internal team and the external team. Let us see those in detail:

The Internal Management Team

A business team consists of several departments. The most common departments are—marketing, sales, IT, customer service, operations, finance, and HR.

These departments depend on the nature and functioning of your business. For example, a dental clinic may not require a sales department per se.

The entire management team is distinguished according to their responsibility. This helps the business owners and investors be aware of the roles, benefits, ESOPs (if applicable), profit sharing (for sales), work contracts, NDAs (Non-Disclosure Agreements), and Non-Competition Agreements of the entire team.

It is recommended that business owners collect and document the following information about their team:

• Educational Background
• Work Experience
• Accomplishments

For example, your present VP of Marketing helped their previous company grow its bottom line from $3 million to $10 million over 18 months.

The External Management Team

The external management team is usually composed of—advisory board members and professional services.

Advisory board members help by:

• Bringing their industry expertise, experience, and knowledge to the table.
• Offering strategic advice and helping the business develop long-term goals with future considerations in mind.
• Having a lot more contacts than any other individual can help businesses grow.

Credible advisory board members show great commitment to a company’s growth. Therefore, it becomes important to mention their experience and specialization in the business management plan.

The advisory board members can help give valuable advice that internal team members need or lack.

Usually, board members meet quarterly or monthly to provide strategic guidance in place of stock options in your company. This helps attract the best advisors and motivates them to invest in your business.

On the other hand, professional service helps by

• Offering highly specialized advice and sharing knowledge.
• Helping through the implementation process of strategies.

Such services help businesses leverage skills that would be difficult to build and acquire over a short period.

Examples of such professional services are:

• IT Consultants
• Business coaches and consultants

After a brief overview of the management team, let’s move forward.

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2. The Management Team Gaps

The management team gap is an important part of the management section. Primarily because it helps document if your management team currently has gaps or missing skills.

Your team may lack a few required skills while starting. The management team gaps help you to be aware and make efforts to close this gap.

As a business owner, you must document what positions are missing and who ought to fill those positions or take responsibility.

For example, if you need a VP of Sales, clearly document this in the section.

Also, write down the job description and key responsibilities to be undertaken. For example—you might mention that the role requires 10 years of experience in the sales domain. The applicant must have experience handling a sales team, closing new accounts, and working in tandem with the marketing team.

Be as detailed as possible. This will help you build a checklist while interviewing the right candidate and also win investor confidence in your managerial skills.

Here are a few key positions you would want to include in your management team business plan:

• Founder and/or CEO
• Chief Technical Officer (CTO)
• Chief Marketing Officer (CMO)
• Head of Product Management (PM)
• VP of Sales
• VP of Marketing
• Business Development Manager
• Customer Service Manager
• Sales Managers/Sales Staff
• Human Resources Manager
• Advisory Board Members

3. The Management Structure

The management structure defines how a business organizes its management hierarchy. A hierarchy helps determine all team members’ roles, positions, power, and responsibilities.

The management structure also depends upon the type of business ownership. Business ownership can be—a sole proprietorship, partnership, or LLC.

Following is a sample management structure of an organization.

Now that we understand what details we need to document in business management plans, let’s have a look at the example.

Example of a Management Section Plan

[management section of a hotel], [management team], internal team members.

Name: Charles Fargo Role: Owner Responsibility: Formulating key strategies, defining budgets, and building a business plan Experience: 35 years of owning multiple hotels in Las Vegas Educational Background: B.Sc in Hospitality Management from South Dakota State University.

Name: Michael Clark Role: General Manager Responsibility: Overall hotel operations – guest interactions, revenue management, brand ambassador of the hotel, customer satisfaction, and experience, leadership to all departments Experience: 25 years working with several technology hotels as the general manager. Educational Background: MBA from Wharton School

Name: George Trump Role: Department Manager Responsibility: Manage employees, smooth coordination amongst employees, plan daily affairs of the department, strategize, prepare reports, and deal with complaints and suggestions. Lead team members to function as a team Experience: 15 years working as a department manager Educational Background: BSc in Hotel Management from Texas University

Note: There can be multiple Department Managers depending on the nature of your business. In the case of hotels, departments can include – housekeeping, logistics, security, food, and banquets.

Name: Donald Clooney Role: Marketing and Sales Manager Responsibility: Increase occupancy and generate revenue. Position the hotel as an option for leisure activities, relaxation, and holidays. Experience: 11 years working as the marketing and sales manager for hotels Educational Background: MBA in Tourism and Hospitality from Midway University

Name: Oprah Williams Role: Human Resources Manager Responsibility: Recruit and train hotel staff, maintain smooth onboarding process for new recruits, train, counsel, and coach staff, resolve conflicts, and conduct performance reviews Experience: 9 years working as human resources manager for hotels Educational Background: MBA in Human Resources Management from California University

External Team Members

Advisory Board Member

#1 Richard Branson Responsibility: Strategic advisory for sustainable growth and expansion Experience: Founder of Virgin Group

Professional Services

#1 Digital Marketing Agency – Neil Patel – Help market and sell our product using digital mediums – blog, website, YouTube, and social media.

[Management Structure]

There is a gap in one key position in our startup.

#1 Chief Finance Officer (CFO) Responsibilities: Finance, Accounting, Tracking Profit and Loss, and overseeing FP&A (Financial Planning and Analysis)

So, that’s it for today! Now that you know how to write a management team section, make sure you write the best one by mentioning all the necessary details.

If you are still confused about writing the management team sections, then you can visit various sample business plans to know more. You can even use smart business planning software to smooth your business planning process.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

What tone should i use when writing the management team section.

When writing about your management team in your business plan, use a tone that’s confident, professional, and positive. This shows investors that your team is experienced, qualified, and able to lead your company to success.

Who should be included in the management team's business plan?

In the management team of a business plan, you should include all the key members of the company:

• Top management
• Founder/CEO
• VP of sales

Do I need to include personal information about team members?

In a business plan, it’s not necessary to include personal information about team members unless it directly relates to their role in the business. The focus should be on professional qualifications, experience, and skills that are relevant to their position.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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First Steps: Writing the Management Section of Your Business Plan This quick guide offers tips that will help you create the management section for your business plan.

By Teresa Ciulla Jan 4, 2015

Opinions expressed by Entrepreneur contributors are their own.

In their book Write Your Business Plan , the staff of Entrepreneur Media, Inc. offer an in-depth understanding of what's essential to any business plan, what's appropriate for your venture, and what it takes to ensure success. In this edited excerpt, the authors discuss what type of information you should include in the management section of your business plan.

In the management section of your business plan, you describe who'll run the company. This may be no more than a simple paragraph noting that you'll be the only executive and describing your background. Or it may be a major section in the plan, consisting of an organizational chart outlining interrelationships among every department and manager in the company, plus bios of all key executives.

Time and again, financiers utter some variation of the following statement: "I don't invest in ideas; I invest in people." Whether this is the whole story—investors certainly prefer capable people with good ideas to inept people with good ideas—there's no doubt that you, and the people who run your company, will receive considerable scrutiny from financiers as well as from customers, suppliers and anyone else with an interest in your plan. People are, after all, a company's most important asset. Not adequately addressing this issue in a business plan is a serious failing. Luckily, it's one of the easiest parts.

Be sure to include all of the following parts, where applicable:

You. Before you can impress people with your management team, it's important to let your readers know who's at the helm and who's selecting the management team. You, therefore, have to let them know your background, including your vision, your credentials, and why you chose the management team you did. You need to briefly explain what's expected of this management team and the role you see them playing in the future of this business.

Your managers. Identifying your managers is about presenting what they bring to the table. You can provide this by describing them in terms of the following characteristics:

Education . Impressive educational credentials among company managers provide strong reasons for an investor or other plan reader to feel good about your company. Use your judgment in deciding what educational background to include and how to emphasize it.

Employment . Prior work experience in a related field is something many investors look for. If you've spent ten years in management in the retail men's apparel business before opening a tuxedo outlet, an investor can feel confident that you know what you're doing. Likewise, you'll want to explain the key, appropriate positions of your team members. Describe any relevant jobs in terms of job title, years of experience, names of employers, etc. Feel free to omit any irrelevant experience.

Skills . In addition to pointing out that you were a district sales manager for a stereo-equipment wholesaler, you should describe your responsibilities and the skills you honed while fulfilling them. Again, list the skills that your management team has that pertain to this business. Each time you mention skills that you or a member of your management team has spent years acquiring at another company, it will be another reason for an investor to believe you can do it at your own company.

Accomplishments. If you or one of your team members has been awarded patents, achieved record sales gains or once opened an unbelievable number of new stores in the space of a year, now's the time to tell about it. And don't brag: Just be factual and remember to quantify. If, for example, you have 12 patents or your sales manager had five years of 30 percent annual sales gains, this is the stuff investors and others reading your business plan will want to see.

Personal . Investors want to know with whom they're dealing in terms of the personal side, too. Personal information on each member of your management team may include age, city of residence, notable charitable or community activities and, last but far from least, personal motivation for joining the company. Investors like to see vigorous, committed, involved people in the companies they back. Mentioning one or two relevant personal details of your key managers may help investors feel they know what they're getting into, especially in today's increasingly transparent business climate.

In a longer plan, when you give your management team's background and describe their titles, go on and tell readers exactly what each member of the management team will be expected to do in the company. This may be especially important in a startup, in which not every position is filled from the start. If your marketing work is going to be handled by the CFO until you get a little further down the road, let readers know this up front. You certainly can't expect them to figure that out on their own.

Board members. Your board members, and their reasons for being included, should be a brief part of your business plan. A board of directors gives you access to expertise, provided you choose them wisely, but at the cost of giving up control of the business to them. Technically, the officers of a corporation report to the board of directors, who bear the ultimate responsibility for the proper management of the company.

A board of advisors is a less-formal entity. You can have the same kind of people on an advisory board but you don't report to them nor do they have the same power as a board of directors. Your board should be able to challenge your thinking, help you solve knotty problems, and even change management if necessary.

Outside professionals. Some of the most important people who'll do work for you won't work for you. Your attorney, your accountant and your insurance broker are all crucial members of your team. Your business plan should reassure readers that you have your bases covered in these important professional positions.

Investors want profit. They don't just give money to people they like or admire. But it's also true that if they don't like, admire or at least respect the people running your company, they're likely to look elsewhere. The management section of your plan is where you tell them about the human side of the equation. You can't control your readers' responses to that, but you owe it to them to provide the information.

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Business Plan Organization and Management: How to Write Guide .

Sep 17, 2023 | Business Consulting , Business Plan , Organization and Management , Organizational Development , Strategy

Writing the Business Plan Organization and Management Section

It provides critical information for those looking for evidence that your staff has the necessary experience, skills, and pedigree to realize the objectives detailed in the rest of your business plan.

What Is the Organization and Management Section in a Business Plan?

The organization and management section of your business plan should provide details about your business structure and team. This section typically comes after the executive summary. However, some people have it further in the document after the market analysis section.

This section generally is separated into two parts. The first concerns the organization as a whole. It gives readers an overview of the company structure, which is an excellent opportunity for the reader to lift the roof off your office and peer into its inner workings. For your legal design, you may set up as a limited liability company (LLC) or nonprofit/ charity or form a partnership. It’s crucial to include this section. However, suppose you’re starting a home business or have an already operating business where you’re the only person involved. In that case, you can skip this section or show the company registration details from either the company’s house or the awarding .gov.

The second part focuses specifically on your management team and introduces readers to each member — your chance to impress them with the many accomplishments pinned to your organization’s management team.

This section may seem less important than some of the other parts of your business plan, but the truth is that your people are your business. If they’re highly competent and accomplished, the implication is that so is your business.

Of course, if you’re a sole proprietor with no management structure or any employees, this section is unnecessary other than to talk about yourself and your achievements.

The section on organization and management should outline the hierarchy, individual roles, and corresponding responsibilities. It should also highlight each person’s strengths and qualifications for their positions.

Business Plan Organization Section

The organizational section of your business plan outlines the hierarchy of individuals involved in your business, typically in a chart format. This section identifies the President or CEO, CFO, Director of Marketing, and other roles for partnerships or multi-member LLCs. If you’re a single-person home business, this section is straightforward as you are the only person on the chart.

Although this section primarily focuses on owner members, you can include outsourced workers or virtual assistants if you plan to hire them. For example, you may have a freelance web admin, marketing assistant, or copywriter. You may even have a virtual assistant who coordinates with your other freelancers. While these individuals are not owners, they hold significant responsibilities in your business.

There are various business structures, such as sole proprietorships, partnerships, LLCs, and corporations.

Detail the Legal Structure within the Business Plan Organization and Management Section

Here is an indicative list of business structures. It would help if you talked to your accountant and legal advisors to determine which legal form is the best for your business proposition.

Sole Proprietorship

When embarking on a business venture, it’s essential to consider the various structures available. A sole proprietorship is a structure whereby the business is not regarded as separate from its owner’s finances. The owner retains complete control and responsibility for the company. However, they are unable to sell stocks or bring in new owners. The business becomes a sole proprietorship if not registered under any other structure.

Partnership

When forming a partnership, it can either be a limited partnership (LP) or a limited liability partnership (LLP). One partner assumes most liability in a limited partnership (LP). In contrast, the other partners have limited liability and control over the business. Alternatively, in a limited liability partnership (LLP), all partners have limited liability from debts and actions of other partners, and there is no general partner.

Limited Liability Company

A limited company (LTD) or limited liability company (LLC) is a mixture of business structures that mixes aspects of partnerships and corporations. It offers limited personal liability to the owner and passes profits through to their tax returns.

Corporation

There are various types of corporate structures. A C-corporation enables the issuance of stock shares, pays corporate taxes instead of personal returns, and provides the highest level of personal protection from business activities. On the other hand, nonprofit corporations are similar to C corporations. However, they do not aim to make profits and are exempt from state or federal income taxes.

More information on company legal structures is available on UK.Gov and USA.SBA websites.

Describe Your Company’s Organizational Structure

This first step illustrates the positions in your organization’s employee hierarchy and how they all relate to each other.

This is usually done graphically as a guide, using an organizational chart, or “org chart” for short. People use a Microsoft tool, i.e., PowerPoint or Excel, to help.

Organization Charts typically follow a top-down hierarchy, starting with your CEO/ Managing Director in the top box at the top of the page. Lines extend down from that person’s name to boxes containing the terms of the CEO’s direct reports.

We have included an example organizational chart below for guidelines only.

Identify your business organization structure and list your team members’ strengths and skills.

Those managers then have lines extending to those who report to them, and so on, down to your lowest staff positions.

This section will give your readers a quick understanding of your management and governance structure, the size of your organization, and your lines of control and communication.

Describe your Team in your Business Plan Organization and Management Section

In your business plan’s Organization and Management section, please provide a detailed description of your team. Y ou will discuss the company’s management team, starting with the owners.

This section highlights who is involved in the running of your business and who are the support professionals. It also includes the roles and responsibilities of managers.

Suppose the company structure is a multi-owner arrangement or some other multi-owner arrangement. In that case, you’ll want to include information for every member and their percentage of ownership and ongoing involvement in the company.

It’s important to discuss how ownership interests are split, their responsibilities, what they did before securing their current position, and how they came to be involved with the company.

Here, it would help if you talked about some of your critical team members. These people are directly responsible for large portions of your business operations.

Owner/Manager/Members

Within your business o rganization and management section, y ou should introduce the team and talk about their experience, qualifications, previous companies and achievements, role in the company, and any special skills they bring with them. Please provide the following details for each owner, manager, or member of the business within your business plan:

• Percentage of ownership (if applicable)
• Level of involvement (active or silent partner)
• Type of ownership (e.g., stock options, general partner)
• Position in the company (CEO, CFO, etc.)
• Responsibilities and Duties
• Educational background
• Relevant experience and skills
• Previous employment history
• Skills that will benefit the business
• Awards or recognition received
• Compensation structure
• How each individual’s skills and experience will complement and contribute to the business’s success

Perhaps they’re an entrepreneur, business coach, exclusive advisor, or industry specialist to help you grow.

This is an ideal opportunity for companies with an Executive Board of Directors, Governance Structure, or Advisory Board to introduce them to your readers.

Executive Board

Having a board of directors is essential for your management team. Without one, you may be missing out on crucial information. This section includes details similar to those found in the ownership and management team sub-section, such as the names, areas of expertise, positions (if applicable), and involvement with the company of each board member.

Strategic Advisors

Suppose you’re looking for funding for your business or to fill a gap in your knowledge, or you may not have the funds to hire an executive board. In that case, you must inform potential partners and investors that you have a team of professionals assisting you. This includes lawyers, accountants, and any freelancers or contractors you may be working with. When listing these individuals, include their name, title, educational background, certifications, services they provide to your business, and their relationship with you (i.e., hourly rates, projects, retainer, as-needed, regular). Additionally, highlight their skills and experience that make them an asset to your team you need

Does anything else make them stand out as quality professionals (awards, past working with credible brands)?

Spotlight on the Wider Team Structure

Now, you’ve showcased the management team in its entirety. You can provide brief bios for hiring team needs or secondary members and talk at length about how the team’s combined skills complement each other and how they amplify the team’s effectiveness.

It’s also important to point out any gaps in the knowledge your team is currently suffering. Your readers will likely be savvy enough to pick up on existing holes.

Therefore, you’ll want to get ahead of these criticisms and demonstrate that you’re already aware of the positions and complementary skill sets your management team still requires and how you plan to address the knowledge gaps with future hires.

Do you need help writing your business plan o rganization and management section ? 

Every successful business plan should include the organization and management section, helping you communicate your legal structure and team.

Writing a business plan can seem overwhelming, especially when starting a small, one-person business. However, it can be a reasonably simple task. This section of the plan should be updated if there are any changes to the organization structure or team members, such as additional training, awards, or other resume changes that benefit the business.

Creating your comprehensive business plan takes planning, research, time, and a herculean effort. If, at any point, the work becomes too much to handle, we can step in to assist.

Do you want an expert “second opinion” before creating your business plan or financial forecasts? Let’s talk !

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Contact Noirwolf Consulting today using the website contact form or by emailing [email protected] or call us at +44 113 328 0868.

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