How to create a management plan

When writing a business plan the management plan portion should describe your management team, your staff and how your business ownership is structured.Also listed should be the individuals that you plan on having on your management team as well as the skills that both management and supporting staff members have.The bottom line is that the business plan needs a management plan that will illustrate that the company has a capable and talented leadership structure that will lead to the financial success of the company.

Management plans are all structured differently.Most plans are organized into sections that address the following types of management needs: ownership, internal management, external management resources, and human resources.Here are some simple descriptions of each of the categories that you may choose to include in the business plan that you create.

Ownership

The ownership structure outlines the legal structure of the business.This portion could be quite simple to draft if you business is run solely by you (a sole proprietorship).Or, the ownership portion of the management plan could become more lengthy if you are taking on partners or if you want to become a corporation.Details of liability, ownership rights, delegation of authority, etc. all need to be clearly stated in writing on your management plan.

Internal management

The internal management section generally explains all of the categories or divisions of management that are relevant to your business.Specific people should be named and their responsibilities should be clearly listed.Along with their professional duties should be a profile of that manager's relevant skills and the contributions that they will make to that division of the company.
Sales, marketing, administration and production are in the category of internal management and if your business plan calls for the need of the services that these teams, then they should be included in your management plan.It is not necessary to have different teams and managers for each of the above mentioned teams.For example, you may combine the personnel for your sales and marketing departments and the same people may manage all of the areas of responsibility that are applicable to areas of this type of subject.So long as you explain in your management plan, who will be responsible for doing what, you will have an appropriate outline.
If you plan on having a larger business organization with several key managers and personnel it is appropriate to also include the resumes of these key individuals, an explanation of compensation, benefits, and any other contractual agreements that exist.Obviously the more components there are to an individual's compensation schedule the longer this portion of your management plan will be.

External management resources

If in your business plan feel like you need to use the services of other entities and individuals, you should list such entities in this portion of the external management resources.Many companies hire out there research and development.Other companies have business/individuals that would not be considered partnerships, but that they work closely enough with to mention.These are just a few of the possible uses of external resources.

Human resources

Most companies have some form of a human resources department.Having such a department is vital to the workings of a business especially if you plan on hiring and firing employees.In a small or at-home business the responsibilities of human relations may belong to just one person.Explain in detail which departments you will include in your management plan and who will be responsible for the running of those departments.Examples of human resource departments include: compensation, benefits, risk management, employee relations, employment, and information technology (I.T.).