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How to Write the Management Summary

Overview of the Management Summary Section of a Business Plan

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The management summary section of your business plan describes how your business is structured, introduces who is involved, outlines external resources and explains how the business is managed.

This section backs up all of the data you've included elsewhere in the business plan by demonstrating the expertise of the team and resources behind your company.

Example of a Management Summary Section of a Business Plan

For an example of a management summary section, see the Coffee Kiosk Business Plan.

What Does a Management Summary Section of a Business Plan Include?

The management summary section covers all of the relevant information about personnel, anticipated growth and how the company is organized. This section can be broken down into the following parts:

  • Business Structure – What business structure will your company take, a sole proprietorship, an LLC, a partnership or a corporation? This determination will form the basis for the rest of the areas in this section.
  • Management Team - Who will oversee the company? If you're forming a corporation, who will make up the Board of Directors? An organizational chart can be a good visual to use to illustrate this element.
  • Management Team Gaps – What are your anticipated personnel needs? How will each role, once filled, contribute to the success of your company?
  • Other Personnel – Aside from your Board and employees, what external support will help the business function? This could include attorneys, accountants, public relations professionals, administrative support and even an external advisory board.
  • Personnel Growth Plan – What are the salaries of each person to be involved with the company for the next three years? This should provide a bottom line cost for personnel expenditures.

Tips for Writing the Management Summary Section of a Business Plan

The management summary helps the reader understand who is behind the company and what personnel resources may be needed in the future. Here are a few tips for ensuring that the management summary gives the reader the information they need to accurately analyze your company's potential.

Explain the Intricacies

Very rarely does a team function exactly as outlined in an organizational chart. Describe how key personnel will interact and how roles may cross to provide a well-rounded picture of the overall management.

Relate Personnel to Business Activities

Your goal should be to directly attach personnel to an individual role and the overall success of the company. You can accomplish this by relating the specific experience of each person to the role they will play in the business.

Don't Include the Kitchen Sink

In the management summary section, focus only on the most relevant biographical information that is most important to your business plan. Put the full bios in your appendix.

Let the Team Review

When you have drafted the summary, give your key personnel a chance to review it. This will give you a change to confirm that you've accurately described the roles and responsibilities as understood by the team.

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