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 learned exactly what you must include in the management section of your business plan.
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).
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
- HR 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.
Management Team Gaps
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.
Key Team Members
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.
Management Team Gaps
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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