what is a management team?
the term ‘management team’ refers to a group of individuals within a business who are responsible for overseeing and coordinating various aspects of the business’ operations. the management team typically includes executives, directors and/or leaders who hold key roles such as chief executive officer (ceo), chief financial officer (cfo), chief operations officer (coo), and heads of different departments. this team plays a crucial role in setting strategic direction, making key decisions and ensuring the efficient functioning of the business. their collective expertise, leadership skills, and ability to work collaboratively are essential for the overall success and growth of the business.
what should a business plan’s management team section cover and why?
highlighting your own professional attributes, as well as those of any other business owners, gives you a chance to demonstrate your ability to succeed with the new venture based on your track record. you can approach this section of your business plan a little like an abbreviated cv, noting any key achievements, particularly where they are relevant to the proposed startup.
there may be certain areas where the business owners do not possess the relevant skills or industry knowledge. these gaps should, if possible, be filled by a competent management team who will contribute to your business, either as employees or contractors. explain how any missing skills will be dealt with (eg by hiring experts later down the line).
if you have already succeeded in securing some level of investment for your business, make sure that you include details of existing investors in this section. emphasise their unique value to your enterprise in terms of skills, experience and the potential to open doors.
if you don’t already have a linkedin account, create one. if you do have one, make sure you update it. this is often one of the first places a potential investor will look when researching the team behind an investment opportunity. you should also encourage other key members of the management team to create or update linkedin profiles.
what are operations and logistics?
in a business plan, operations refers to the processes and activities involved in the day-to-day functioning of the business. this includes production, manufacturing, delivery of products or services, quality control, and other core operational functions. describing operations in your business plan involves outlining:
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workflow
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production methods
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key resources
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the technology utilised
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any relevant strategic partnerships
a well-defined operations section helps investors understand how the business will efficiently produce and deliver its intended offerings.
logistics refers to the management of the flow of goods, services, information, and resources throughout the supply chain. this includes:
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transportation (eg hiring hgv drivers)
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inventory management
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warehousing
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order fulfilment and distribution
essentially, logistics refers to how a business plans to handle the movement of materials and products from suppliers to customers. efficient logistics arrangements contribute to timely deliveries, cost savings and overall customer satisfaction.
together, operations and logistics arrangements dictate the process by which a business hopes to produce and/or provide its goods or services to customers.
what should a business plan’s operations and logistics section cover?
when starting out in business, it’s a good idea to do as much as you can yourself to keep costs down. however, taking on too much yourself can actually hinder growth, so it’s crucial that you assess your realistic requirements in terms of the size of the workforce your business needs. decide which roles will need to be filled by part-time or full-time workers so you can plan your hiring process.
an increasing number of businesses are started by entrepreneurs working from home. this can work indefinitely for some online ventures, but for most businesses, it will quickly become necessary to rent out commercial or industrial premises. consider the expenses of rental and also any utility bills.
there are various types of insurance and licences you may need to obtain, depending on the type of business you’re starting. bear in mind that if:
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you employ any staff, you must have employers’ liability insurance in place
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you stock any high-value goods, your insurance premiums may be significant
if you’re planning to work with children, you’ll have to make sure all relevant employees are dbs-checked and comply with any relevant rules and regulations.
some businesses’ core products rely on specialised machinery, which can be extremely expensive and may even be the reason for seeking investment. include full details of any business equipment required, together with costings.
don’t forget to do some research into your key suppliers. find out the pros and cons of different potential suppliers and try to establish accurate cost estimates, which should be worked into the business plan.
