Organizing the management structure of the business and hiring management personnel is a critical step in the success of the business.

You may want to consider the following points in preparing this section:

• Describe the primary management skills that will be required for the business to be successful as an ongoing entity.  Describe the ongoing proposed management positions. 
• Describe how the main functions of the business are divided (ie. accounting, marketing, operations, etc.).  Prepare an organizational chart showing lines of authority and responsibilities. 
• Identify the key management positions required for the business.
  
  
  • Chief Executive Officer (CEO) 
  • Chief Financial Officer (CFO) 
  • Chief Operations Office (COO) 
  • Other management positions
  
  
• Describe the roles and qualifications needed for each management position and the process used to select each manager.  Describe any other management skills needed to make the business successful. 
• Prepare job descriptions for these individuals. 
• Outline the expected timing of the process of filling the management positions. 
• If some key management positions have already been filled, provide a summary of their qualifications. 
• Present expected salaries for key positions. 
• What types of incentives will be used to motivate and reward management? 
• How will owners assess the initial and ongoing performance of management? 
• Describe any existing or proposed management contracts or contract terms. 
• Will a stock option or ownership pool be assigned for operations management and/or employees? 
• Describe the Board of Directors/Managers (number, term, etc.), its role and its relation to management. 
• What other management resources will be available (attorney, CPA, other)?

More information is available on Selecting and Rewarding Management.

More information is available on Governance.