Pathways to

Entrepreneurship
 Chapter 6
Organizational Plan
WHAT IS A ORGANIZATIONAL PLAN
Organizational Plan – it is the section of the business plan that
identifies the form of ownership the business venture will take.It
provides a background of the management team;
describes the organizational structure,including the
management team’s roles, responsibilities, and reporting
relationships;outlines the planning, decision-making
monitoring,evaluation processes;and spells out the role of the
board of advisers among others.

Forms of Ownership
Sole Proprietorship
Partnership
Corporation
Single or Sole Proprietorship – it is owned by the individual who starts
the business for which he has full responsibilty.

Partnership – there must be at least one general partner and some

limited partners.

Corporation – owners are those that hold shares of stock.

Organization Structure

This section of the organizational plan will show the reader of the
business plan who the principal owners of the business are, who constitutes the
management team, and who provides valuable advice to the business owners
and/or management team.

Business Owners

One section of the organizational plan could be a listing of the business

owners and their qualifications.Their previous entrepreneurial experience, if any
and the extent of their investment in the business could also signal who among
them would have a strong influence in determining the general directions the
business will take.
The Management Team
If the enterprise has a management team that is largely distinct
from the business owners, it is best to highlight their qualifications, skills, and
managerial experience, especially in relation to the position, for which they will
be handling.
The goal is to convince the reader of the business plan that the
management team is composed of a good mix of individuals with complementary
skills that will increase the chances of the business being run effectively.
Business Advisers

It is rare for a new venture to have all of the expertise it needs to

grow the business at the onset. It is best to be candid about this. The
business owners, however reinforce their management team by having a
board of advisers or consultants – a group of individuals that the company
invites to provide their inputs and insights on how to run the business.