Key Points to an Effective Business Management Plan
Every business plan needs to include a business management plan that outlines the key management positions of the personnel. Having a comprehensive management plan will prompt Investor and consumer confidence. Most importantly, it provides a guide toward running a smooth operation, where personnel’s roles and responsibilities are clearly spelled out. Everyone knows who does what and who to turn to when there is an issue to be resolved. It helps everyone stay on the same page and working toward the same goal.
The major elements of your management plan should include the following:
- Ownership structure
- Internal and Outside Management Team
- Human Resources:
Ownership Structure
When you decide to start your own business, you need to determine what type of business structure best suits your needs. Business structures range from sole proprietorships, corporations, partnerships, corporations, or joint ventures. Describe
Describe your company’s ownership in clear terms. If there are multiple owners or investors, you may need to indicate how authority, liability, and stock are distributed. Basically, whether in a partnership agreement or through shares, you want to indicate who owns what percentage of ownership in the business.
Internal Management Team
Who are the members of your key management team? This may include investors, executives, managers, important employees and staff, and entrepreneurs. You will want to outline the exact roles and responsibilities for each person; include a sort profile that includes, their skills, strengths, and previous experiences and education that relate to the task at hand. If you’re the only one working in a sole proprietorship, then write about your own skills and educational background.
In addition, you should indicate who is responsible at each level of the hierarchy; explain who makes the final decision, whether it is management, a board, or one person; Or is there shared decision-making and collaboration? Make sure everyone is on the same page when it comes to resolving disputes and sharing power.
In outlining the roles for key management personnel, you will want to address the main business operational categories, including sales, marketing and PR, administration, and production, human resources, overseeing finances, controlling inventory or supplies, and operations; split up the different aspects of your organization so that you can define management roles.
External Management Outside Professionals
Other than you internal management team, you may have an advisory board of professionals to bring more talent to the table, helping to guide your business to success. They should care about your business and be invested in its growth and success. Include a copy of board policies, including election policies, term length, and responsibility, authority, and conflict resolution in your management plan.
In addition, you will likely need outside professionals, such as bankers, investors, accountants, lawyers, consultants, IT, marketing, insurance brokers.
Your management plan should include their bios, previous business experience, set of skills and specializations that will profit your business, leadership capabilities, and strengths.
Human Resources
How many employees will your need to run your business for the next year? Indicate whether your employees are full time, part time, contract, freelance, or an employee. Include what you paying in salaries, for each employee and the total, along with benefits, profit sharing plans, health plan costs, and workman’s compensation insurance.
Be sure to include a forecast that includes whether or not you will need to hire new employees or talent based on future growth projections. What processes do you have in place for educational and professional training? Are there incentive programs for professional development or meeting goals? Include an account of all of this along with the costs.
Summarize
Clearly summarize all the main points of your management plan that concludes how the combined talents and skills of everyone together will help lead your business to success.
Your business management plan should be sent out to all the owners and that there is a consensus of agreement on the plan. You will likely need to revise and edit as the team expand and shrinks. When the management plan is finalized, have all relevant parties sign the plan before you submit it to your investors, bank, or fundraising bodies.
-Shira Kalfa, BA, JD, Partner and Founder
Shira Kalfa is the founding partner of Kalfa Law Firm. Shira’s practice is focused in corporate-commercial and tax law including corporate reorganizations, corporate restructuring, mergers and acquisitions, commercial financing, secured lending and transactional law. Shira graduated from York University achieving the highest academic accolade of Summa Cum Laude in 2012. She graduated from Western Law in 2015, with a specialization in business law. Shira is licensed to practice by the Law Society of Ontario. She is also a member of the Ontario Bar Association, the Canadian Tax Foundation, Women’s Law Association of Ontario, and the Toronto Jewish Law Society.
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