Managing Your Business

It's not just what you do in your business, but also who is going to do it and when you plan to have it done. That is, what are your plans to manage the people, time, and events of your business?

For example, what kind of organizational structure will your company have? Who does what in your company, what various responsibilities does each have, and what tasks are assigned to each of them? Within the divisions of your company, how many of your team are executives, managers, and key personnel? This is often more important to someone who is considering investing large sums of high-risk money into your venture. The first thing they ask is, "Will it work?" Then, it's "Can you (and the team you assembled), actually do it?"

Warning: Think Twice About Employing Family and Friends

Don't make the mistake of placing unqualified friends or family in key management positions. You're running a professional business, and your management team should reflect that professionalism.

Your Organizational Structure

When deciding your organizational structure, keep these tips in mind:

• List all the tasks that need to be done in your company. Keep the description as broad as possible: administration, sales, marketing, operations, customer service, public relations, production, research and development, and so on.

• Organize these tasks into departments.

• Detail the roles and responsibilities of each of these departments.

• Include the names of those who will fill these positions. If you don't have specific people yet, describe the position's responsibilities and the type of expertise and experience necessary.

Finally, the organizational form of your business affects your organizational structure and the human resource requirements of your company. There are differences in how you describe your personnel team based on whether your company is a sole proprietorship, partnership, or corporation.

If you're a sole proprietorship, you are the management team. This section should describe the abilities and expertise you bring to the new business, the areas in which you will need help, and how you'll get that help.

For example, if you're lacking in marketing, will you bring on a consultant to help you with your advertising plan? Will you hire a bookkeeper or use an outside accounting service to keep your books? Will you store and ship your products, or will you use a third-party fulfillment service?

On the other hand, if your business is a partnership, be prepared to discuss who the partners are and what experience and skills they bring to the business (include full resumes). You should explain how the different abilities of the partners complement the others' and add to the success of the business.

If your business form is a corporation, you should list the offices of the corporationpresident, vice president, secretary/treasurerand the board of directors. In the directors' bios, include information on their expertise, why they were chosen, their current stock distribution (ownership), and what they will contribute to the business.

Your Implementation Plan

How you implement your business venture is as important as the venture itself. This is done by conveying to the reader what your implementation plan will be. The value of a plan is measured in its implementation.

An implementation plan sets out the logical steps, or phases, you will need to go through to turn your business idea into reality. In other words, it converts your business plan into action.

Besides conveying your plan to a reader, an implementation plan provides a way of managing your people, time, and events to be completed within a given timescale. It also describes what future plans you will have for your business after initial successa continued growth or exit strategy. Among other reasons, identifying future plans is one way of telling how you will stay competitive and one step ahead of the competition. In other words, it provides a snapshot of how you intend to set up your business and implement your plan over time.