The quality of a company’s management team can be the most important aspect of a business plan. Many claim they will invest in a strong management team with a mediocre idea, but will decline to fund a weak team with a great idea. Entrepreneurs should present the strengths of the company’s management team by highlighting relevant experience, achievements, and past performance. Key areas include management’s ability to provide planning, organizational skills, and leadership. This is not the place for modesty or self-deprecation. You should be honest, highlight your accomplishments and capabilities while mitigating any obvious shortcomings or weaknesses. For example, if you are young and inexperienced, you can accentuate your energy, capacity for hard work, and willingness to learn, while downplaying your lack of experience. When readers are finished with this section, we want them to be confident that the venture is in good hands and will be competently managed.
This is also where the entrepreneur describes how the company will be organised. There should be an organisation chart. This section should include an explanation if there will be a board of directors, or a board of advisors, who will be on them, and their role. It should describe the ownership structure of the company, as well as any possible stock option plans. Founders and principal managers who will run the company need to be described. Their duties and responsibilities, any unique skills they might have should be described in great detail. If there is a significant hole in the team, a proposal how to fill it should be included in the business plan.