Whether you’re in a partnership or are a sole owner, this is where to mention it.
List the names of the owners of the business, what percent of the company each of them owns, the form of ownership (common or preferred stock, general or limited partner), and what kind of involvement they’ll have with day-to-day operations; for example, if they’re an active or silent partner.
Lenders and investors will be keenly interested in their previous successes, particularly in how they relate to this current venture.
Include each person’s name and position, along with a short description of what the individual’s main duties will be.
If the business will use outside consultants, freelancers, or independent contractors, mention it here as well.
And talk about positions you’d want to add in the future if you’re successful enough to expand.
For larger companies, an organizational plan with well-thought-out procedures is even more important.
This is the best way to make sure you’re not wasting time duplicating efforts or dealing with internal confusion about responsibilities.
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.