How to Write the Organizational Structure and Management Section of Your Business plan

Organizational Structure

The Organizational Structure and Management Section of a business plan contains information about your organization’s structure.

That includes details of the members’:

  • duties
  • expertise
  • qualifications
  • and education

Business plan formats vary. Oftentimes this section comes after the market analysis. It is particularly important if you have a partnership or a multi-member Limited Liability Company (LLC).

 It is a good idea to summarize how your business runs its operations even if you are only running a sole-proprietorship. This highlights your organization’s skills and experience which you can use for the purpose of marketing your business and for publicity.

Essentially, this section of your business plan covers two (2) main areas:

  1. The management team which details information about what your team brings and
  2. The organization which shows the business structure and individuals involved

Make sure to:

  • give a brief summary of the management team in the opening section
  • mention the composition and years of experience
  • put the breakdown of the management team in general

Here are the Steps you need to know on, “How to Write the Business Organizational Structure and Management Section of Your Business Plan”.

Writing the Organizational Structure and Management Section
  1. 1
    Examine the Business Plan

    Your goal at this stage is to analyze the initial structure of your organization and define the type of structure whether it should be hierarchical or horizontal and find out if it is the optimal structure for your business or if there is a need for you to convert it to a team-structured format.

  2. 2
    Draw the Organizational Chart

    Draw the organizational chart to show a visual representation of your business structure and place the members of the management on the top lines while each team member or staff placed under their respective managers. Make sure to add a line connecting a member to the person that he or she directly accountable.

  3. 3
    Write the Job Description

    Writing the job description would clearly explain each employees role in the organization which includes the tasks, management, and reporting. This section of your business plan would also be a reference sheet for all employees to review on a regular basis.

  4. 4
    Reproduce and Disseminate of the Chart

    You will need to reproduce copies of the organizational chart and the job description of each employee by reprinting the document to be distributed to the employees, their managers, and the human resource department. This activity has to be done on instances when a major change takes place in the organization.

  5. 5
    Hold a Meeting and get Feedback

    Holding a meeting whenever a change takes place is important in an organization for good reasons. First of all, anything change that is being implemented has to be explained in a meeting and reviewed. Secondly, it would also be a good opportunity to address any concerns and answer questions regarding the changes. Lastly, it is important to receive feedback from the employees and consider what the members would have to say and be open to adjustments.

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