Can you believe it, only two more sections and we can write the Executive Summary! This week we will be discussing the Management Summary. The management summary covers the management team and personnel requirements.
Management Team
If you are a business seeking funding, this section is where you convince the potential investors of the quality and experience of those who will run the business. Remember, lending is all about risk assessment (how likely are we to get our money back and how long will it take) and investors first look at the executive level to determine the quality of those who set the vision.
As you begin to list the officers, be careful not to have it read like a resume. Give the job description of each position and how each person is uniquely qualified to execute those responsibilities. Stay with pertinent information regarding their qualifications for being part of the team, but do not describe prior work experiences in too much detail - you can include their resume in the Appendices.
The key positions to be listed are the President/CEO, VP Sales/ Marketing and Secretary/Treasurer. These are the vital functions within an company’s structure and represent the vision, implementation and administration of your business. If you are a Sole Proprieter or a two person Partnership, you will need to have resources that will function in the needed capacity whether compensated or non-compensated. Why? because investors know no business can be successful when the principles perform all facets of operations.
Remember, this is a three to five year plan, so it is a good idea to include the job descriptions of positions you have not filled. This will show your understanding of the type of infrastructure you will need to accomplish the financial goals you stated in the last section and if you can justify the principles functioning in many roles, it shows you have plans to alleviated that situation.
Personnel Requirements
Just as with the management team, list the job descriptions of your supporting staff. Whether you have completed hiring or not, it shows the framework on which your company will be built. Include the annual expense of the position and at which point in your plan those positions will be added. Use a spreadsheet to represent total personnel expenses as illustrated below:
| Personnel Plan | |||
| FY 2002 | FY 2003 | FY 2004 | |
| Store Managers/Partners | $96,000 | $96,000 | $100,000 |
| Salespeople — Full-time | $0 | $0 | $0 |
| Salespeople — Seasonal | $4,650 | $3,070 | $3,380 |
| Stock/Delivery — Full-time | $21,320 | $23,500 | $28,850 |
| Stock/Delivery — Seasonal | $2,460 | $2,700 | $2,970 |
| Other | $0 | $0 | $0 |
| Total People | 6 | 7 | 7 |
| Total Payroll | $124,430 | $125,270 | $135,200 |
The figures in your spreadsheet should reflect those in your pro-forma balance sheet. Take the time to research the average salaries and hourly rates for the positions to be added. A good source for this would be www.salary.com.












