Management Team. Entreprenuership subjec

In this chapter how to make a great team.

1. MAOP, Management Team, & Business Exit Strategy Romy Sajjad

2. Manufacturing and operation Plan MAOP should include factors such as plant location, types of facilities needed, capital equipment needed, and labor force both full and part time. Service business needs location ,distance to the market, obtaining competitive edge due to labor force productivity

3. MAOP For example in Manufacturing business, manufacturing and operation plan needs to include inventory control policies, production control, purchase of product parts, workforce operations.

4. Geographic location Explain how seasonal loads will be handled without dislocation Geographic location Provide detailed about your site analysis. Discuss advantages and disadvantages of the sit selected i.e. labor availability, customer proximity, access to transport, utilities etc

5. Facilities and improvements Provide basic facilities available for the business such as plant and office space, storage and land area, machinery and so forth. For a start up when and how the basic facilities required will be acquired. Explain whether the basic facilities will be leased or acquired.

6. Facilities and improvements What is the required finances for plant and equipment What are the future equipment needs Due to expansion in next three years how plant and equipments will be adjusted

7. Strategy and plans Describe the production process, decisions regarding subcontracting of component parts, if not complete in house production Justify your production cost Information about your subcontractors, suppliers on the basis of survey conducted Provide quality control approach such as production control, inventory control

8. Regulatory Control What are the legal issues involved in your business such as state or foreign laws relevant to your product .

9. Management Plan Senior  management , executive  management , or management team  is generally a  team  of individuals at the highest level of organizational management  who have are responsible for  managing  a company or corporation routine work. A team of managers in charge of directing a company, business

10. Why? Long-term business success depends, above all, on the quality of the team providing the leadership, direction, and vision. In fact, in some cases, investors have funded start-up companies primarily on the basis of the people who will run them. Assemble background information on yourself and each of your senior team members.

11. How? In your business plan, provide each key person’s profile into a description of no longer than one-half page, following these tips: When describing team members,  include everything that’s relevant to the potential success of your business. But keep each biographical description brief, to the point, and less than a half page in length. If yours is a single-person operation,  you don’t have to spend too much time describing yourself in your plan, but do have a resume highlighting your education, experience, and accomplishments ready for when the information is requested by a banker, supplier, or prospective investor.

12. Detail Information If you’re running a larger business,  feature biographies of up to five top managers in your business plan, including all the big Cs: CEO (Chief Executive Officer), COO (Chief Operating Officer), CFO (Chief Financial Officer), and CTO or CIO (Chief Technology Officer or Chief Information Officer). Depending on the size of your company, you may also want to include brief descriptions of the members of your Board of Directors, Board of Advisors, or consultants who play a major role in making your business a success.

13. Do a Research You should also conduct a web search for the name of each person featured in your business plan to be sure the results lead to positive, credible, current information. Chances are good that prospective customers, investors, and suppliers will look for your company and the more visible people online as part of their research efforts, and you want links to lead to pages that affirm their interest.

14. Sample: M anagement Summary Our management team is comprised of people with many years of experience in the long-term care provider and software development industries.   Our philosophy is laser-like focus on the customer’s needs.   We have a Chief Financial Officer and four directors reporting to the President and CEO.   Part-time positions staffing the customer support desk will be filled as needed and reporting to the Director of Operations.   Seven regional sales managers will be contracted as commissioned resellers and reporting to the Director of Business Development.   Four have already been identified.

15. Organizational Chart A simple but effective way to lay out the structure of your company is to create an organizational chart with a narrative description. This will prove that you're leaving nothing to chance, you've thought out exactly who is doing what, and there is someone in charge of every function of your company. To a potential investor or employee, that is very important.

16. Ownership Information Names of owners Percentage ownership Extent of involvement with the company Forms of ownership Management Profiles

17. Resume Detail Experts agree that one of the strongest factors for success in any growth company is the ability and track record of its owner/management team, so let your reader know about the key people in your company and their backgrounds. Provide resumes that include the following information: Name Position (include brief position description along with primary duties) Primary responsibilities and authority Education Unique experience and skills Prior employment Special skills Past track record Industry recognition

18. Continued Community involvement Number of years with company Compensation basis and levels (make sure these are reasonable -- not too high or too low) Be sure you quantify achievements (e.g. "Managed a sales force of ten people," "Managed a department of fifteen people," "Increased revenue by 15 percent in the first six months," "Expanded the retail outlets at the rate of two each year," "Improved the customer service as rated by our customers from a 60 percent to a 90 percent rating") Also highlight how the people surrounding you complement your own skills. If you're just starting out, show how each person's unique experience will contribute to the success of your venture

19. Sample from Cycling Rental Business Jim Rouleur , Owner and Manager Joe has over twenty years experience in the cycling business. He served for ten years as a product manager for ACME Bikes. After that he was the Operations Manager of Single Track Cycles, a full-service bike shop located in Bend, Oregon. He has an undergraduate degree in marketing from Duke University and an MBA from Virginia Commonwealth University. (A complete resume for Mr. Rouleur can be found in the Appendix.(

20. Continued Mary Gearset , Assistant Manager Mary was the 2009 U.S. Mountain Biking National Champion. She worked in product development for High Tec frames, creating custom frames and frame modifications for professional cyclists. She also has extensive customer service and sales experience, having worked for four years as the online manager of Pro Parts Unlimited, an online retailer of high-end cycling equipment and accessories.

21. Human Resources Staffing Organizational chart (show reporting structure). Job descriptions (show what people do). Job specifications (show the skills and knowledge required to do each job). Recruiting – Where will you find good people? Management – How will you treat those good people? Compensation – How much will you pay your people? This includes base wages, commissions, bonuses and other incentives

22. Professionals & Mentors Accountant Lawyer Bank Services Business Advisors and Mentors (it can be helpful to provide single-paragraph biographies on key business advisors.

23. Legal & Administrative Legal Form (proprietorship , partnership). Buy Sell Agreement (Corporation and Partnerships Only) List of key legal agreements such as contracts, leases, agreements, franchise agreements, personal loan guarantees etc. The actual documentation is often put into the appendix of the business plan. Insurance

24. Sample

25. Business exit strategy   Planning is often overlooked by business owners until it's time to go. Your exit strategy needs to be built into your overall strategic plan and also needs to include a management succession plan. Also when you decide to sell, use free business valuations to build a price or value (or, a least, to give you an idea of the valuation).

26. Continued Most business owners don't think about their business exit strategy at the time that they startup their businesses. But you should. And if you've been running your business for a number of years and you haven't planned your exit (which may be 20 years or more in the future), do so now. Even when writing a business plan, you are usually focused on starting up a new business or growing an existing business, not on your business exit strategy. But it's the best time to plan your exit.

27. Why? Because if you don't plan your  business exit strategy  now, you will find it much more difficult to leave later. Include your business exit strategy in your business plan outline checklist

28. Succession Plan Retirement.  If you've worked for a number of years, there will come a point in time when you will want to retire or redirect your energy to other interests. Planning ahead for that outcome is important. Are you going to pass the company to family? To employees? To a key manager/ Or are you going to sell the business to a competitor or on the open market. By pre-planning, your retirement from the business can be smooth and seamless; and your legacy will be carried forward

29. Partnership conflicts When you started up your business with a partner or partners, you likely all had similar goals in mind. However as each of you grew, and as the business evolved, it is possible (much like a marriage) for the business partnership to develop issues and conflicts that cannot be resolved

30. Continued How is your business structured (understand shareholders definition - who owns what, what type of shares, etc.)? You need to be clear on the ownership (unless you are the sole owner) as it relates to selling and/or exiting the business).

31. How To? If you have given a serious effort to resolving the conflict, and still have been unable to do so, then one, or all, of you will need or want to exit the business. This process is much like a divorce. And it can be as messy as a divorce if you haven't planned your exit strategy up front.

32. Continued Partners may not always agree, or may develop competing priorities. Build a strategy into your shareholder agreements up front. Understand your shareholders definition and structure: if your business structure is not a shareholder structure, make sure that, at least, you have a notarized(signed) agreement of how you will resolve disputes, and exit or dissolve the business.

33. Partnership Issues Partnership issues could also mean a spousal break-up where both spouses work in the company; that could be a challenging and emotional event unless prior to starting up your business, or now, you build an equitable exit plan for both or either one of you. Other partnership exits could be family members. Remember that partnership disputes can be challenging for you to overcome, but also challenging for the business to overcome. Plan in advance of your partnership, how you will handle dispute resolution.

34. Decide in Advance You may not have any disagreements but one of the partners wants to move on and exit the company. How will you handle this? If you discuss this in advance, you will minimize future Illness or Disability.  If health issues are a factor, find a way to exit or at least find a way to take a break from work. Ensure that you have an insurance policy to cover illness or disability that might require you to leave your business temporarily or permanently. Have a management succession plan ready. (A management succession plan needs to be planned under all circumstances: who are you training to step in and up?) problems

35. Death Most often death is not a planned event. But what happens to your business should you die, can be planned. Part of the plan must be to have in place a solid life insurance policy made out to the business (if you plan for it to go on without you) and likely a ' keyman ' insurance policy. (Sorry but it's called keyman by the insurance industry - a throwback to many, many years ago). The definition of key personnel is an individual(s) whose injury or death would have a significant impact on the business' operations.

36. Selling a profitable business. you've made a success of your business and you'd like to sell while you can get a good price. Contract a professional firm to do a business valuation on your business. Build a strategic plan that projects the next three or five years and share it with prospective buyers.

37. Selling an unprofitable business.  Unfortunately, if your business is unprofitable it will be a challenge to sell, even if you desperately want out. You will still need to do a business valuation on your business and you will need to put together a rationale for why someone else could do better with the business than you (for example, if you are cash poor and your business has been cash starved which is the primary reason for failure, look to sell to someone who can inject cash into the company).

38. Selling an unprofitable business.  Unfortunately, if your business is unprofitable it will be a challenge to sell, even if you desperately want out. You will still need to do a business valuation on your business and you will need to put together a rationale for why someone else could do better with the business than you (for example, if you are cash poor and your business has been cash starved which is the primary reason for failure, look to sell to someone who can inject cash into the company).

39. New Venture  You have a new venture or a new idea you want to pursue and you need to exit your business so you can focus on the new one. In this instance, you may be able to sell to a partner (if you have one) or to an employee capable of, and interested in, taking on and managing the business.

40. Appendices Purpose: The purpose of the appendices is to provide supporting documents for claims made in the business plan. They may not necessarily be read, but are there for reference purposes. Resumé (s) of principals Letters of agreement / intent (potential orders, customer commitments, letters of support). This adds a great deal of credibility to the outside reader , including the bank or financial institution. Sample ads and brochures Collation of market surveys Other Price lists