In an eight section Business Plan ^[1], the Company Section and the Management & Operations Section come in as sections 2 and 3 respectively. These two sections set up the meat of the business, the Product and Service Section, which is typically Section 4 of a business plan. These two sections of a plan are critically important as they speak to the quality of how a company is set up and run, as well as, the quality of the team running the company, which will ultimately spell success for a company. Many think the Marketing Plan ^[2] section and the Products and Services section are the most important in a business plan, but without sound company management and operational management, the best products and awesome marketing can not make it successful. It is the team and how it runs a company that makes it successful. It is the heart of a company.

A Company’s Management Team is of Paramount Importance

No matter how good the company’s Products or Services, it can not be successful with out the solid building blocks of the Company, Management and Operations Sections of its business plan. I usually combine Operations with the Management section but it can stand on its own or be part of the Company Section. Either way, it is important to establish the connection between Company Structure, the Management Team, Management Objectives and the Operational aspects of the company. It is a very important and necessary triangle to plan well for.

The Company Overview Section

The Company section of a Business Plan speaks to all the pertinent details of your particular company. This section comes first in the Business Plan (after the Executive Summary ^[3]) as it serves as an introduction to the necessary details and background of your company. For instance, the Company Section could contain this type of information… 

§  How it is formed

§  What your company does

§  How it is organized

§  Your Vision, Mission and Goal Statements

§  History of the company

§  Where it is located

§  How you can be contacted

§  And so forth…

Suggested Format for the Company Overview Section

1)     Company Establishment

2)     Company History

3)     Company Structure

4)     Company Ownership & Legal Formation

5)     Facilities & Locations

6)     Products & Services Overview

7)     Trends Affecting the Company

8 )     Customers

9)     Competitive Strategy

10)  Company’s Strengths & Weaknesses

11)  Company Performance

12)  Company Finance

13)  Company Assets

Management and Operations Section

You can have the greatest business idea or concept but lack the people to execute the plan.  Therefore, the Management Section of the Business Plan is the most important element of the plan and often scrutinized as such by finance sources, customers and your Business Plan audience. This section builds on the Company Section explaining in detail…

§  Who will run the company

§  Who founded the company

§  Who the key employees are within the company

§  How the company will be run

§  What are the specific qualifications of those who will run the company, work in the company, and be responsible for sales, marketing and its strategic direction

§  The specific gaps in Management and talent, providing a plan to fill or overcome those present gaps

§  And so forth…

Example Format for the Management and Operations Section

1)     Employees

2)     Management Philosophy

3)     Management Requirements

4)     Management Gaps

5)     Organizational Structure

6)     Founders / Directors / Principals / Management / Key People

7)     Management Administrative Procedures & Controls

8 )     Decision Making Teams & Processes

9)     Company and Management Objectives, Goals and Strategy

10)  Compensation Structure

11)  Human Resources

12)  Outsourcing

13)  Consultants and Advisors

14)  Products and Services Production and Delivery

15)  Distribution System

16)  Order Turn Around

17)  Suppliers and Vendors

18)  Service Standards

19)  Customer Service Plan

20)  Quality Control

21)  Costs Minimization

22)  Technology

23)  Production and Operation Advantages

24)  Capacity

25)  Safety Procedures

26)  Inventory

27)  Environmental Considerations

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