…we have put a team together…
The management team is a crucial factor when drawing up a business plan proposal for investors. The investors will be much more concerned about the executive team than they are about the business idea itself. They know that the manner in which the business plan is put into practice and the difference between success and failure will depend on recruiting, training and motivating an effective management team.
What do the Investors look for in the Management Team?
Investors will be particularly interested to obtain answers to the following questions about the management team:
- Does the team know its weaknesses?
- Does each team member have a defined role to play?
- Are there any previous working relationships within the team?
- Is there a common objective for all team members?
- Is there relevant experience relating to the business idea in the team?
- What are the business ownership arrangements?
- Is the team fully committed?
Business Plan Management Team Presentation
There is no set style for the presentation of the management team information in a business plan, but we suggest a simple format similar to that shown below. Full details and complete CV’s can be included in an appendix or submitted later if requested.
For each individual, the format shows details of their name, title and role in the business, and a brief biography of the person. The biography should have particular emphasis on the following characteristics and skills and show how they link back to the business idea discussed in elevator pitch section of the business plan contents article.
- Past successes and failures.
- Education and professional training.
- Management and work experience.
- Special skills related to the business idea.
- Business reputation.
The business plan management team section is only for people who currently work in the business not for roles the business intends to fill at a later date, these are normally included in the milestones section of the business plan.
This is part of the financial projections and Contents of a Business Plan Guide a series of posts on what each section of a simple business plan should include. The next post in this series is defining the customer problem.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.