You can't succeed in business today without a competent and qualified management team.
It's something investors and lenders look for when they assess your company's viability. So it makes sense that the management team section of your business plan should be carefully crafted to highlight the important role your management team plays in your business.
A solid management team section addresses at least three groups of people in your management team: Key management staff, the Board of Directors, and outside consultants. Each management team member should be identified with a brief narrative describing their background and the management role they play in the business.
If it's done right, the management team section of your business plan can yield some significant benefits for your business, including the following:
- Increased visibility. Business plans that contain well-crafted management team sections tend to score big points with investors. If your management team section convinces investors that your company has the people resources to achieve your objectives, you will almost always land a face-to-face meeting.
- More credibility. An excellent management team section gives your business instant credibility and often compensates for minor weaknesses in other areas of the business plan. That doesn't mean your business plan can be completely dysfunctional, but the right management team can reassure investors who might otherwise be skittish about certain aspects of your business.
- Better terms. A proven management team is a business asset that can result in a higher business valuation. Since investment deals take into account your company's current value, the management team section can be leveraged to negotiate better investment terms. You'll get more and give away less if you have developed and documented a first-rate management team.
- Business success. Ultimately, the most significant benefit associated with a strong management team is that your business will be more successful. Whether investors recognize the value of your team or not, an impressive management team section creates internal confidence that the company is headed in the right direction.