How to Write a Great Business Plan by Sharon L. Fullen & Dianna Podmoroff

Author:Sharon L. Fullen & Dianna Podmoroff
Language: eng
Format: epub
Publisher: Atlantic Publishing Group, Inc
Published: 2006-06-15T00:00:00+00:00

MISTAKES TO AVOID

• Underestimating the cost of advertising. In some industries, advertising costs can exceed the cost of raw materials. You cannot assume the product will “sell itself”; you must be prepared to introduce, support, and continually tell people about your products, services, and company.

Table of Contents

chapter 7

MANAGEMENT SUMMARY

Managing a business requires more than just the desire to be your own boss. It demands dedication, persistence, the capacity to make wise decisions, and the ability to manage both employees and finances. Your Management Summary, along with your Marketing and Financial Management sections, is your business foundation.

Take a good look at the talents you possess and the skills you lack. Your job is to hire personnel who can supply your “missing” skills. Staff are your greatest business resource and most valuable asset—spend their energy wisely, respect them, and reward them to build a strong team.

You also need to look at how you can best serve your business. Even if you can create a P&L statement or design a Web page, consider if this is the best use of your time. First, you’ll need to invest your time in activities that earn money. If you are the creative talent in the business, don’t hesitate to outsource or hire someone to handle the operational and support duties. Learn to train people for advancement and to delegate duties. Entrepreneurs often like to “do it themselves,” feel they are the “only one who can do it,” or think they cannot afford outside help. This is a self-limited managerial style. Share the duties and responsibilities, and you’ll have rewards to share also.

Your management plan should answer such questions as:

1. How does your background and business experience help in this business?

2. Who will be on the management team?

3. What are your weaknesses and how can you compensate for them? (Although you won’t write directly about the weak spots, they will be noticed by business professionals. Explain the “missing” skills before someone can question your team’s ability.)

4. What are the team’s strengths and weaknesses?

5. What are their duties? Are these duties clearly defined?

6. If a franchise, what type of assistance can you expect from the franchisor? Will this assistance be ongoing?

7. What are your current personnel needs?

8. What are your plans for hiring and training personnel?

9. What salaries, benefits, vacations, and holidays will you offer?

10. If a franchise, are these issues covered in the management package the franchisor will provide?

11. How will you attract quality employees? How can do you plan to enhance productivity?

12. What benefits, if any, can you afford at this point?

If this is a franchise, the operating procedures, manuals, and materials devised by the franchisor should be included in this section of the business plan. (If they are too bulky, simply list them by title and refer the reader to their location.) Lenders can consider the strength of the franchisor as part of your management capabilities. Study these documents carefully when writing your business plan, and be sure to incorporate the important highlights. The franchisor should assist you with management training and ongoing management support.

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