When it comes to adding other elements to a business plan to encourage potential investors, it is recommended to provide a description of a management team and include their previous experiences and accomplishments. This component may spark the interest of investors and lenders because they “feel the quality and experience of the management team is one of the most important factors used to evaluate the potential of a new business.” When attention is given to the Management Team section of a business plan, it will be beneficial not only to investors but also to individuals who develop the plan. This is because the section usually involves evaluating the necessary skills, resources, and experiences a successful management team may need.
During the development of the Management Team section in a business plan, several questions should be answered. First, it should be determined who are the key leaders of the organization. In cases when it is impossible to identify actual people, a plan developer can describe the “type of people needed for business success.” Second, it must be evaluated whether the main leaders have industry experience. If they do not have any, it is essential to mention which skills they will bring to the business and how valuable they will be. Third, a business plan can describe duties that each manager will perform. It is recommended to create an organizational chart to identify which authorities and responsibilities are expected to be fulfilled in each position. Lastly, in the same section, a salary structure should be developed to provide information on payments necessary to attract skilled candidates for relevant positions.