The management summary of your business plan will describe your management structure. This section will vary in length depending on how large your business is. In most cases, a home-based business will have only one or two employees who are also the owners. In this case, this component of the business plan will not be very lengthy.
Information that should be included in this section is the organizational structure of the business, the internal and external management teams, and human resource needs. Some of this information will not be relevant to a home-based business, but is worth knowing about (especially if you have plans of expanding your company in the future).
The ownership structure of the business is the legal structure of the business. This might be a sole proprietorship, partnership, or corporation, among others. A business that is a sole proprietorship can be stated in a single sentence. You will need to add further details if your company has a different form of legal structure.
The internal management of a company describes who will be responsible for what. Again, in a home-based business there are typically one or two owners that are responsible for all operations of the business. If your business were to expand, you may decide to add additional departments such as sales and marketing, human resources, production, administration, and research development. This section should also include the resume of the key management players, including the owner.
The chances are good that your home-based business will not have to describe any external management. This area would describe any outside sources such as an advisory board or any professional services that help to manage your business. Professional services include lawyers, accountants, bankers, etc.
Finally, you will want to describe your human resource needs. Be specific here and detail how many employees or freelancers you will want to hire and how you will compensate them. Will they be full-time or part-time? You’ll also want to describe your employee policies in this section as well, even if you will not be hiring right away.
Management Summary
John and Jane Doe will manage The Party Store and handle all of the company’s marketing.
Personnel Plan
Primarily John and Jane Doe will run The Party Store. The company will hire 1 additional part-time employee (25 hours weekly) to assist with helping customers, cleaning the store, and stocking the shelves.
Personnel
Personnel Plan
FY 2008 FY 2009 FY 2010
Owner 1 $25,000 $27,500 $30,000
Owner 2 $25,000 $27,500 $30,000
Employee 1 $11,700 $13,000 $14,300
Total People 3 3 3
Total Payroll $61,700 $68,000 $74,300
