Management Plan in Business Plan: Team and Operations

Key Takeaways

• A management plan in a business plan explains who will run the company and how day-to-day operations will be handled.
• Investors expect to see details on the management team’s experience, staffing needs, and key advisors.
• The operations plan should outline location, hours, suppliers, inventory systems, and customer service processes.
• Including ownership structure, reporting hierarchy, and decision-making processes helps build credibility.
• A strong management plan shows how leadership, staffing, and operations will work together to achieve business goals.

What is a management plan in a business plan? As a small business owner, you know you face an uphill battle. About 80 percent of new ventures fail within their first five years. Why? Most of the time it's due to flawed operating procedures or a less-than-optimal management structure.

What Is a Management Plan?

The management plan is all about employees and operations.

• Employees are one of the most important parts of any new venture. Good employees can make your life much easier, while bad employees can distract you and be a detriment to your success.
• Operational structure can be the difference between a successful venture and a failure.

When you're putting together a business plan, the operations and management section will describe how your business will operate on a day-to-day basis. It will cover all the essentials:

• Your company's physical location
• Labor
• Facilities
• Equipment
• Other important processes

This section is an easy way to answer basic questions about your business without overwhelming readers.

Why a Management Plan Matters

A management plan in a business plan matters because it reassures investors, lenders, and partners that the business has capable leadership and clear systems in place. Even a strong idea can fail if the team lacks the experience or resources to execute it. This section is also critical for internal purposes—it helps founders clarify responsibilities, identify potential staffing gaps, and establish accountability from the start. A well-prepared plan signals that your business is organized, professional, and prepared for long-term success.

Management

Carefully crafting a professional and thorough business plan is an important step in forming a new venture. It will keep you on track and clearly define strategy and goals. However, business plans are only as good as the people behind them.

A venture's biggest asset is the entrepreneur. Investors won't make a move until they know they have complete confidence in an entrepreneur. Does he or she have the right experience? Is he or she willing to put in the work? These are just two of the questions Investors will have to answer before working with a new entrepreneur.

The management section of your business plan is an excellent space to highlight the members of your management team. Tell your readers and potential investors who will be managing your company, where they come from, how they will help your venture, and anything else that will signal your venture's future success. Be sure to cast the best light on your management team. Your investors need to know that this team is capable of anything.

There are usually three parts to a good Management and Staffing portion of a business plan:

1. Management team details
2. Key supporters and alliances, such as an advisory board
3. Staffing and employment requirements

A few things to remember as you work on this section of your business plan:

• Your readers are usually potential investors. They need to know you and your management team are trustworthy and deserving of their investment.
• Investors need to know that you and your team can do the job; they need to get a feel for your attitudes and your abilities.
• Showing your team has a wide variety of skills and experiences will give you an advantage when presenting your business plan.
• It's all about the people. Business plans are great for answering key questions about the new venture, but at the end of the day, investors are looking to partner with hard-working, trustworthy people.

Ownership and Leadership Structure

Your management plan should explain the company’s ownership and leadership structure. This includes:

• Legal structure (LLC, corporation, partnership, etc.)
• Equity ownership percentages and voting rights
• Reporting hierarchy, showing who makes decisions and how authority flows
• Board of directors or advisors, if applicable

By spelling out this structure, you provide investors with transparency and demonstrate that you have considered governance and succession planning.

Operations

Now let's talk about operations. The operations section of the business plan describes several key characteristics of your business. For example, if your business has a physical, "brick and mortar" location, take time in this portion of the business plan to describe the area around your business. Tell your investors why your location is optimal for your business.

Make a note of your standard operating hours. Answer questions like,

• When will you open every day?
• When will you close?
• Will you be open during holidays?
• If so, which ones?

This is also a great section to list out your daily operation details, the different products or services you will provide, your standard operating procedures, customer service, and so on.

Take time in the Inventory section of your operations plan to list out potential suppliers, vendors, or contractors with whom you have agreements. Your partners, even the third-party ones, reflect upon you, so make sure to sing their praises. Put some thought into an inventory plan. Remember, too much inventory means you're likely wasting valuable resources that could be deployed elsewhere. On the other hand, too little inventory means you could be losing out on potential customers.

Once again, your management team plays a crucial role in your operations plan. Tell your investors exactly who they are, how they are uniquely qualified, and how their responsibilities will be divided with operations.

The management and operations sections of your business plan will demonstrate to your investors that you have the right team and the right strategy to be successful in a competitive industry.

Key Partnerships and External Support

Successful operations often depend on outside relationships. Be sure to mention:

• Strategic partners (suppliers, distributors, technology providers)
• Professional services (accountants, attorneys, consultants)
• Industry alliances or memberships that lend credibility

These partnerships demonstrate that your business is plugged into the broader ecosystem and has access to essential resources.

Skills and Experience of Key Personnel

Highlight the background and expertise of your leadership team. Consider including:

• Education and professional credentials
• Relevant industry or management experience
• Past entrepreneurial ventures or notable achievements
• Unique skills that give your business a competitive advantage

Investors want to see evidence that your team can execute the business model and adapt to challenges. Including brief bios or resumes in an appendix is common practice.

Staffing Strategy and Human Resources

Your management plan should detail your staffing approach:

• Projected number of employees and positions to be filled
• Recruitment strategy for finding skilled workers
• Compensation and benefits structure
• Training and professional development programs
• Retention policies to reduce turnover

This section shows that you understand how to scale your workforce while maintaining culture and productivity.

Risk Management and Contingency Planning

Operations are vulnerable to risks such as supply chain disruptions, staff shortages, or unexpected market shifts. Include a brief discussion of:

• Backup suppliers or alternative vendors
• Crisis management protocols (e.g., for natural disasters or cyberattacks)
• Insurance coverage and compliance safeguards
• Scalability planning, so operations can adapt as the business grows

Acknowledging risks while showing mitigation strategies builds investor confidence and demonstrates foresight.

Frequently Asked Questions

1. What is a management plan in a business plan?
   It outlines the leadership team, staffing strategy, and operational structure to show how the business will be managed day-to-day.
2. Why do investors care about the management plan?
   Investors want to know the business has competent leadership, clear accountability, and a plan to execute growth strategies.
3. What should be included in the management section?
   Details on the management team, ownership structure, staffing needs, and key advisors or partners.
4. How is the operations plan different from the management plan?
   The operations plan focuses on daily processes—like location, suppliers, and customer service—while the management plan covers leadership and staffing.
5. Should risks be included in the management plan?
   Yes, acknowledging risks and presenting contingency strategies shows foresight and helps build investor confidence.

If you need help with a management plan in business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.