The Management Team Component

The management team component should include the answers to at least the following questions:

• 3.1 How is your team balanced in technical, conceptual, interpersonal, and other special skills needed in your business?
• 3.2 What will be your style of leadership?
• 3.3 How will your company be structured? Include a statement of the philosophy of management and company culture.
• 3.4 What are the key management positions, compensation, and key policies?
• 3.5 Include a job description for each management position and specify who will fill that position. Note: Prepare an organization chart and provide the rsum of each key manager for the appendix.
• 3.6 What other professionals, such as a lawyer, an insurance agent, a banker, and a certified public accountant, will you need for assistance?

The Manufacturing and Operations Plan Component

If you are in a manufacturing business, now is a good time to describe your manufacturing and operations plans, space requirements, equipment, labor force, inventory control, and purchasing requirements. Even if you are in a service-oriented business, many of these questions still may apply.

The manufacturing and operations plan component should include the answers to at least the following questions:

• 3.7 What are the advantages and disadvantages of your planned location in terms of
  • Wage rates
  • Unionization
  • Labor pool
  • Proximity to customers and suppliers
  • Types of transportation available
  • Tax rates
  • Utility costs
• Zoning requirements

• 3.8 What facilities does your business require? Prepare a floor plan for the appendix. Will you rent, lease, or purchase the facilities?
• 3.9 Will you make or purchase component parts to be assembled into the finished product? Make sure to justify your make-or-buy decision.
• 3.10 Who are your potential subcontractors and suppliers?
• 3.11 How will you control quality, inventory, and production? How will you measure your progress?
• 3.12 Is there a sufficient quantity of adequately skilled people in the local labor force to meet your needs?

Review of Business Plan Activities

Be sure to go over the information you have gathered. Check for any weaknesses and resolve them before beginning Part 4. Also, review all the answers to the questions in Parts 1, 2, and 3 to be certain that they are consistent throughout the entire business plan. Finally, write a brief statement that summarizes all the information for this part of the business plan.