It’s important to define the positions in the company, which job is responsible for what, and to whom everyone will report.
Over time, the structure may grow and change and you can certainly keep tweaking it as you go along, but you need to have an initial plan.
A smooth-running operation runs far more efficiently and cost-effectively than one flying by the seat of its pants, and this section of your business plan will be another indication that you know what you’re doing.
A large company is also likely to need additional operational categories such as human resources and possibly research and development.
You want your readers to feel like your top staff complements you and supplements your own particular skill set.
You also want readers to understand why these people are so qualified to help make your business a success.
If you are incorporated, say so, and detail whether you are a C or S corporation.
If you haven’t yet incorporated, make sure to discuss this with your attorney and tax advisor to figure out which way to go.
One way to explain your organizational structure in the business plan is graphically.
A simple diagram or flowchart can easily demonstrate levels of management and the positions within them, clearly illustrating who reports to whom, and how different divisions of the company (such as sales and marketing) relate to each other.