How to Write the Management Team Section of a Business Plan + Examples
Written by Dave Lavinsky
Over the last 20+ years, we’ve written business plans for over 4,000 companies and hundreds of thousands of others have used our business plan template and other business planning materials.
From this vast experience, we’ve gained valuable insights on how to write a business plan effectively , specifically in the management section.
What is a Management Team Business Plan?
A management team business plan is a section in a comprehensive business plan that introduces and highlights the key members of the company’s management team. This part provides essential details about the individuals responsible for leading and running the business, including their backgrounds, skills, and experience. It’s crucial for potential investors and stakeholders to evaluate the management team’s competence and qualifications, as a strong team can instill confidence in the company’s ability to succeed.
Why is the Management Team Section of a Business Plan Important?
Your management team plan has 3 goals:
- To prove to you that you have the right team to execute on the opportunity you have defined, and if not, to identify who you must hire to round out your current team
- To convince lenders and investors (e.g., angel investors, venture capitalists) to fund your company (if needed)
- To document how your Board (if applicable) can best help your team succeed
What to Include in Your Management Team Section
There are two key elements to include in your management team business plan as follows:
Management Team Members
For each key member of your team, document their name, title, and background.
Their backgrounds are most important in telling you and investors they are qualified to execute. Describe what positions each member has held in the past and what they accomplished in those positions. For example, if your VP of Sales was formerly the VP of Sales for another company in which they grew sales from zero to $10 million, that would be an important and compelling accomplishment to document.
Importantly, try to relate your team members’ past job experience with what you need them to accomplish at your company. For example, if a former high school principal was on your team, you could state that their vast experience working with both teenagers and their parents will help them succeed in their current position (particularly if the current position required them to work with both customer segments).
This is true for a management team for a small business, a medium-sized or large business.
Management Team Gaps
In this section, detail if your management team currently has any gaps or missing individuals. Not having a complete team at the time you develop your business plan. But, you must show your plan to complete your team.
As such, describe what positions are missing and who will fill the positions. For example, if you know you need to hire a VP of Marketing, state this. Further, state the job description of this person. For example, you might say that this hire will have 10 years of experience managing a marketing team, establishing new accounts, working with social media marketing, have startup experience, etc.
To give you a “checklist” of the employees you might want to include in your Management Team Members and/or Gaps sections, below are the most common management titles at a growing startup (note that many are specific to tech startups):
- Founder, CEO, and/or President
- Chief Operating Officer
- Chief Financial Officer
- VP of Sales
- VP of Marketing
- VP of Web Development and/or Engineering
- UX Designer/Manager
- Product Manager
- Digital Marketing Manager
- Business Development Manager
- Account Management/Customer Service Manager
- Sales Managers/Sales Staff
- Board Members
If you have a Board of Directors or Board of Advisors, you would include the bios of the members of your board in this section.
A Board of Directors is a paid group of individuals who help guide your company. Typically startups do not have such a board until they raise VC funding.
If your company is not at this stage, consider forming a Board of Advisors. Such a board is ideal particularly if your team is missing expertise and/or experience in certain areas. An advisory board includes 2 to 8 individuals who act as mentors to your business. Usually, you meet with them monthly or quarterly and they help answer questions and provide strategic guidance. You typically do not pay advisory board members with cash, but offering them options in your company is a best practice as it allows you to attract better board members and better motivate them.
Management Team Business Plan Example
Below are examples of how to include your management section in your business plan.
Key Team Members
Jim Smith, Founder & CEO
Jim has 15 years of experience in online software development, having co-founded two previous successful online businesses. His first company specialized in developing workflow automation software for government agencies and was sold to a public company in 2003. Jim’s second company developed a mobile app for parents to manage their children’s activities, which was sold to a large public company in 2014. Jim has a B.S. in computer science from MIT and an M.B.A from the University of Chicago
Bill Jones, COO
Bill has 20 years of sales and business development experience from working with several startups that he helped grow into large businesses. He has a B.S. in mechanical engineering from M.I.T., where he also played Division I lacrosse for four years.
We currently have no gaps in our management team, but we plan to expand our team by hiring a Vice President of Marketing to be responsible for all digital marketing efforts.
Vance Williamson, Founder & CEO
Prior to founding GoDoIt, Vance was the CIO of a major corporation with more than 100 retail locations. He oversaw all IT initiatives including software development, sales technology, mobile apps for customers and employees, security systems, customer databases/CRM platforms, etc. He has a B.S in computer science and an MBA in operations management from UCLA.
We currently have two gaps in our Management Team:
A VP of Sales with 10 years of experience managing sales teams, overseeing sales processes, working with manufacturers, establishing new accounts, working with digital marketing/advertising agencies to build brand awareness, etc.
In addition, we need to hire a VP of Marketing with experience creating online marketing campaigns that attract new customers to our site.
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Other Resources for Writing Your Business Plan
- How to Write an Executive Summary
- How to Expertly Write the Company Description in Your Business Plan
- How to Write the Market Analysis Section of a Business Plan
- The Customer Analysis Section of Your Business Plan
- Completing the Competitive Analysis Section of Your Business Plan
- Financial Assumptions and Your Business Plan
- How to Create Financial Projections for Your Business Plan
- Everything You Need to Know about the Business Plan Appendix
- Business Plan Conclusion: Summary & Recap
Other Helpful Business Plan Articles & Templates
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Writing the Organization and Management Section of Your Business Plan
What is the organization and management section in a business plan.
- What to Put in the Organization and Management Section
The management team, helpful tips to write this section, frequently asked questions (faqs).
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Every business plan needs an organization and management section. This document will help you convey your vision for how your business will be structured. Here's how to write a good one.
- This section of your business plan details your corporate structure.
- It should explain the hierarchy of management, including details about the owners, the board of directors, and any professional partners.
- The point of this section is to clarify who will be in charge of each aspect of your business, as well as how those individuals will help the business succeed.
The organization and management section of your business plan should summarize information about your business structure and team. It usually comes after the market analysis section in a business plan . It's especially important to include this section if you have a partnership or a multi-member limited liability company (LLC). However, if you're starting a home business or are writing a business plan for one that's already operating, and you're the only person involved, then you don't need to include this section.
What To Put in the Organization and Management Section
You can separate the two terms to better understand how to write this section of the business plan.
The "organization" in this section refers to how your business is structured and the people involved. "Management" refers to the responsibilities different managers have and what those individuals bring to the company.
In the opening of the section, you want to give a summary of your management team, including size, composition, and a bit about each member's experience.
For example, you might write something like "Our management team of five has more than 20 years of experience in the industry."
The organization section sets up the hierarchy of the people involved in your business. It's often set up in a chart form. If you have a partnership or multi-member LLC, this is where you indicate who is president or CEO, the CFO, director of marketing, and any other roles you have in your business. If you're a single-person home business, this becomes easy as you're the only one on the chart.
Technically, this part of the plan is about owner members, but if you plan to outsource work or hire a virtual assistant, you can include them here, as well. For example, you might have a freelance webmaster, marketing assistant, and copywriter. You might even have a virtual assistant whose job it is to work with your other freelancers. These people aren't owners but have significant duties in your business.
Some common types of business structures include sole proprietorships, partnerships, LLCs, and corporations.
This type of business isn't a separate entity. Instead, business assets and liabilities are entwined with your personal finances. You're the sole person in charge, and you won't be allowed to sell stock or bring in new owners. If you don't register as any other kind of business, you'll automatically be considered a sole proprietorship.
Partnerships can be either limited (LP) or limited liability (LLP). LPs have one general partner who takes on the bulk of the liability for the company, while all other partner owners have limited liability (and limited control over the business). LLPs are like an LP without a general partner; all partners have limited liability from debts as well as the actions of other partners.
Limited Liability Company
A limited liability company (LLC) combines elements of partnership and corporate structures. Your personal liability is limited, and profits are passed through to your personal returns.
There are many variations of corporate structure that an organization might choose. These include C corps, which allow companies to issue stock shares, pay corporate taxes (rather than passing profits through to personal returns), and offer the highest level of personal protection from business activities. There are also nonprofit corporations, which are similar to C corps, but they don't seek profits and don't pay state or federal income taxes.
This section highlights what you and the others involved in the running of your business bring to the table. This not only includes owners and managers but also your board of directors (if you have one) and support professionals. Start by indicating your business structure, and then list the team members.
Provide the following information on each owner/manager/member:
- Percentage of ownership (LLC, corporation, etc.)
- Extent of involvement (active or silent partner)
- Type of ownership (stock options, general partner, etc.)
- Position in the business (CEO, CFO, etc.)
- Duties and responsibilities
- Educational background
- Experience or skills that are relevant to the business and the duties
- Past employment
- Skills will benefit the business
- Awards and recognition
- Compensation (how paid)
- How each person's skills and experience will complement you and each other
Board of Directors
A board of directors is another part of your management team. If you don't have a board of directors, you don't need this information. This section provides much of the same information as in the ownership and management team sub-section.
- Position (if there are positions)
- Involvement with the company
Even a one-person business could benefit from a small group of other business owners providing feedback, support, and accountability as an advisory board.
Especially if you're seeking funding, let potential investors know you're on the ball with a lawyer, accountant, and other professionals that are involved in your business. This is the place to list any freelancers or contractors you're using. Like the other sections, you'll want to include:
- Background information such as education or certificates
- Services provided to your business
- Relationship information (retainer, as-needed, regular, etc.)
- Skills and experience making them ideal for the work you need
- Anything else that makes them stand out as quality professionals (awards, etc.)
Writing a business plan seems like an overwhelming activity, especially if you're starting a small, one-person business. But writing a business plan can be fairly simple.
Like other parts of the business plan, this is a section you'll want to update if you have team member changes, or if you and your team members receive any additional training, awards, or other resume changes that benefit the business.
Because it highlights the skills and experience you and your team offer, it can be a great resource to refer to when seeking publicity and marketing opportunities. You can refer to it when creating your media kit or pitching for publicity.
Why are organization and management important to a business plan?
The point of this section is to clarify who's in charge of what. This document can clarify these roles for yourself, as well as investors and employees.
What should you cover in the organization and management section of a business plan?
The organization and management section should explain the chain of command , roles, and responsibilities. It should also explain a bit about what makes each person particularly well-suited to take charge of their area of the business.
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