HIT 2201 TECHNOPRENEURSHIP IV (BUSINESS PLAN) CHAPTER 2: Management and Organization • Description of legal and shareholding structure Lecture Outcomes • Description of key personnel • Presentation of organizational structure • Describe the professional support needed CHAPTER 2: Management and Organization The section describes who is behind the business. CHAPTER 2: Management and Organization • Business is about people first and everything else second. • Strategies ,processes ,structures and systems are only as good as the people implementing them. Good ideas never succeed on their own. 2.1 Legal structure • Describe your current legal status i.e. Private or Public Ltd 2.2 Shareholding structure • Highlight the ownership structure of the business preferably on a tabular form indicating how much each member contributed to the business. • This is to show the individual commitment to the business. 2.3 Key Personnel • Summary of who the owners and directors are and the degree of their control over the company. • Evidence that the assembled team has the track record ,experience and expertise to achieve its goals. • Confirmation that the interests and competence of the team members are complementary. • If you are yet to assemble the team describe what you are looking for and how you will achieve the right balance between the team members. • Analysis of the expected future staffing needs. 2.3 Key Personnel • The following should be included: • Title of the position • Name of the title holder • Duties and responsibility of the position-this should explain what the individual should do and how the work should contribute to the development of the firm. 2.3 Key Personnel • Previous industry and related experience –This should highlight how past experiences relate to the new firm. • Previous successes –any successes accomplished that can be beneficial to the organization. • Educational background-educational and professional qualifications. Example • Key management positions could be • Managing Director • Finance Manger • Sales Manager • Human Resources In essence be in a position to answer some of the following questions: • Who will be doing the work? • How are they qualified ? • What are their skills? 2.4 Organizational structure • The structure should relate to the type of business you are doing. Eg functional,divisional,matrix,virtual 2.5 HR Requirements • Describe the workforce needed other than key management personnel. • Highlight their duties and responsibilities and the terms of service. Questions to answer • Who will be doing the work? • How will they be hired? • What will they be doing ? • Outline the duties and job descriptions for all personnel • Explain any employee benefit. Mistakes To Avoid • Placing unqualified members in key managerial positions. • Assumption that previous success in other industry automatically translates to our industry. • Presenting a one man team –one person wearing all hats(dubbed one center of power). • Not disclosing management team skills or competency gaps. • Unclear plans for filling the skill or competency gap that are disclosed or clearly exist. 2.6 Professional support • Declare your attorneys • Declare your auditors and accountants • Explain each of their roles and their impact on the business daily operations and general decisions. 2.7 Budget • Prepare a yearly salary budget for the personnel CHAPTER 2: Management and Organization 2.1 Legal structure 2.2 Shareholding structure 2.3 Key Personnel 2.4 Organizational structure 2.5 HR Requirements 2.6 Professional support 2.7 Budget
