By now you’ve put so much work into your business plan that you may have forgotten why you started this in the first place. But no worries, we’re here to guide you through the next step.
The next piece of the puzzle is adding a section in your plan detailing how your business will be organized, who the management team will be, and then tying it all up with the company description.
Don’t worry, most of the hard work has been done.
Organization & Management
Don’t let the title of this section fool you. Here, what investors are looking for are details on how your business will be structured, how it will be run, and who the decision-makers will be.
Starting with yourself, list the names and duties of everyone you’ll be relying on to help run the business. List your duties, those of any Assistant Managers you’ll have, anyone below them, all the way down the hourly positions you’ll be hiring for. Don’t leave anything out. People want to see every base will be covered and believe me, you’ll be asked about it all. People seem to notice every detail when you’re asking them for money.
Side note, don’t let things like being asked for details get you frustrated when you’re meeting with potential investors. They just want to make sure they’re not throwing their money away. Remember, they worked hard to get it, too.
A great way to show how your organization will flow is to put it into a chart. A chart allows you to visualize your organization and helps make sure you don’t forget anyone or any position(s). It’s also a great way to break up the monotony of a long stretch of words and paragraphs. Also, in the future, you can post it somewhere in your office for reference when needed.
People seem to notice every detail when you’re asking them for money.
This is a very important aspect of your business plan.
It’s here you’ll include all legal information and the ownership structure of your business. Add information like your Tax ID and business license information here. You’ll also let investors know whether you’ll be a corporation, partnership, or sole proprietorship.
If you’re a partnership, this is where you’ll state exactly what each partner’s role in the business will be and exactly how much of the business each partner is entitled to.
Other details include:
- Owner names
- Owner involvement
- Owner profiles
- Owner background (investors want to know if you’ve had previous success in this type of business or if you’re new to it)
Ever heard of an elevator pitch? Well, that’s what the Company Description section of your business plan is. A short description of exactly what your business is, how it operates, what makes it different than other businesses out there, and how it will achieve success. I like to describe it as a way to completely describe your business to someone in within 60 to 90 seconds.
This is where you’ll describe what your business does and what need(s) it will be satisfying or what problem(s) it will be solving.
In the case of a restaurant, you’ll let people know what type of establishment you’ll be opening and why. You’ll explain what types of food you’ll be serving and how; who your customers/target market will be, and you’ll list the advantages you have over other businesses you’ll be competing against.
I like to describe it as a way to completely describe your business to someone in within 60 to 90 seconds.
With your organizational structure and your company description, you’re armed and ready to take on even the toughest investors and naysayers. Up next we’ll get into market analysis and the executive summary.
See you soon!