The people responsible for the management of your company do matter to your lenders, investors, and potential strategic partners. This crucial part of your plan shows your investors how your business is structured, who is involved in your company’s development, including external resources, and how the whole industry is managed overall.
The management team summary of a business plan also highlights your team’s education, qualifications, and experience. In turn, the summary then also showcases your company’s strengths and what sets your business apart from others. That’s why it’s essential to learn how to write the management team summary of a business plan.
Who to Include in Your Management Team Summary
1.Your Team Founder(s) or Leader(s)
It’s vital to introduce potential investors to the person(s) responsible for selecting and organizing your team. We call these the key leaders. You’ll want to highlight the person(s) background, vision, and credentials in detail and explain how exactly they choose this specific management team.
2.The Team Itself
Like with your team founder(s) or leader (s), you’ll want to include biographical information about the owner(s), including their skills and professionalism. This should be done with accuracy but also brevity. Highlight the following for each manager:
- Educational credentials
- Professional training (specific to the role)
- Current and previous work experience relevant to the field
- Skills and specialties
- Accomplishments gained while working for the company
- Community involvements
You can also include, if applicable, their age, the city where they live now, their most notable activities, and their motives to become part of the management team. We recommend adding an organizational chart, including departments, department managers, employees, and any relevant employee resumes, to the appendix of your plan. However, because a team rarely functions as an organizational chart indicates, we always recommend describing how key personnel will interact with each other and how their roles may cross paths.
3.The Board (if relevant)
If your management team also includes a board, introduce them here and why each board member was chosen to be a part of the board.
4.Outside Professionals
A team may not always include the people who work for a company. It could also include outside professionals who have lent their support and expert advice. This could include accountants, lawyers, public relations professionals, administrative support, or an external advisory board.
5.Business Structure
Is your company a sole proprietorship, an LLC, a partnership, or a corporation? It’s important to state this clearly here.
How long should the management team summary be?
When learning how to write the management team summary of a business plan, it’s crucial to exercise conciseness while still including the most relevant and insightful information about your management team. We recommend keeping the management summary to a single page or two at the most. If it’s any longer, it may not be read in its entirety.
To ensure that your summary is easy to read, keep it simple in form, function, and structure. This can be accomplished by using:
- Short text
- Lists
- Bullets
- Subheadings
- Vivid illustrations:
- Images
- Charts
- Graphs
- Infographics
- An organization structure based on informational importance, starting with what you think needs more attention and emphasis and then follows up with other points.
- Strong language with a tone that is authoritative, assuring, and affirmative
What If I Don’t Have a Management Team?
If you’re a start-up, it’s to be expected that you may not have a complete management team. That’s okay. In the process of learning how to write the management team summary of a business plan, you’ll evaluate the skills, experiences, and resources your management team will require. Focus on:
- What type of people do you need as key leaders?
- What duties will each position perform? What authority will be granted to each manager, and what responsibilities will be expected of them?
- What salary levels will be required to attract these team members? What is the salary structure, by position, for the next three years?
Final Steps
Once your summary is complete, we always recommend passing it by your key personnel for their review. This ensures you’ve accurately described the roles, skills, and responsibilities as understood by the team. It will also show your team that you value their opinion, which can help motivate your staff and boost their productivity. We also recommend reading your management team summary aloud to make sure it flows properly, and that points are well connected and clear to the reader.
Conclusion
With your management team summary complete, you want to demonstrate to lenders, investors, and potential strategic partners that you’ve hired accomplished people and have outlined their specific responsibilities within the company. It also backs up all the data you’ve included elsewhere in your business plan, by demonstrating your team’s expertise and capabilities for your company. When written concisely and with focus, your management team summary will highlight what sets your business apart from the others.
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