Depending on the nature of your business

Before agreeing to finance a company, venture capitalists, private equity investors, and lenders will often conduct a thorough reference check of each key member of the team, focusing special attention on the president. If the team does not “pass muster,” you will find it difficult to raise the funds you seek. Investors will focus on the industry and technical qualifications of your executive team, their entrepreneurial experience, and integrity among other things. Your business plan should describe how the company is organized and what each individual’s duties and responsibilities are. An organization chart can help the reader. It is also helpful to explain how the individual talents of the management team contribute to realizing the company’s strategy.

This section of your plan should explain any shortcomings in your management team. Are there any critical skills your team lacks? If so, how and when will you recruit people possessing these skills? How will your company operate in the interim period without these skills in management? Your acknowledgement of the need for additional management talent demonstrates to the investors that you have carefully analyzed your management team’s abilities and your company’s needs.

Depending on the nature of your business, human resource issues beyond the management team are essential to successfully implementing your strategy. Your human resource strategy and your sources of other talent should be addressed.