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Today we’re talking about how to write the Organization Overview Section of your business plan.

A.    Remember this section will come just after the Marketing Overview once you have a clear understanding of . . .
1.    Your market
2.    Your competition
3.    How you will penetrate your market
4.    And your general marketing strategy

B.    So, in today’s episode, we’re going to talk through the basic components needed for the Organizational Section of your business plan.  I just want to remind you as we review these different sections of a business plan, you want to extend your planning 3 – 5 years out for each major component.  
For example, we will start with how your business will be organized initially, but we will also begin to think about any changes that need to be anticipated as the business grows.  Thinking ahead about these things will keep you from hitting a brick wall in mid stream.

1.    Let’s start with Management
a)    In any organization, it is important to have and identify key management.  It is no less important in your business.  You will need to list key management and give the uniqueness each person brings to the business.  A quick list of their background experiences that are relevant to the business will be expected.
b)    List their responsibilities within the business and prepare to list their compensation later in the Financial Overview section.
c)    Okay, let’s take this one step further and think about whether you may need to add key management personnel later.  Are their any changes you can anticipate in the business that would merit additions or even deletions in management?

2.    Let’s move to Operations
a)    A major part or organizing your business is defining how it will operate.  For example, how will you hire your team?  Will they be full time employees, part time employees, contractors? 
b)    Will you have external suppliers or will you outsource?
If so, how will you work with these external organizations?  Have you researched best practices for your industry in order to find out how or if similar successful companies outsouce?
c)    How can you use technology to make your business processes more efficient?  Will you need to outsource some technology needs or do you have sufficient skills in house?
There are several places you can go to outsource your technology and administrative needs as well.  

• Elance.com
• yourvirtualresource.com

d)    How will you deliver products and or administer your services?
e)    How will you handle the ebb & flow of your market from an operations point of view?
For example, do you have the key management personnel in place to handle a 50% increase in business production?  Will you need to hire more employees to manufacture your product if the demand increases one hundred fold?  What if production decreased by 50% during the winter months?  Do you have procedures in place to reduce or re-tool employees and even management during this downturn?
f)    And finally, is there any component of your operations strategy that offer your customers an advantage over your competitors?

3.    The third component of the Organization Section of your business plan is quality.  How are you ensuring quality?
a)    Do you have the appropriate insurance for your business?
In some businesses, being bonded and insured is more attractive to potential customers.  Appropriate insurances is also appealing to potential investors!
b)    Do you have a board of directors or some form of advisors to serve as your checks and balance for making important business decisions and creating strategy?
The board of directors or group of advisors should have appropriate credentials and their purpose and positions should be clearly stated.

4.    Most of the information needed for this section does not require reference books or manuals to locate.  The information needed will come from interviews with prospective managements team from allowing the questions in this episode to provoke you towards clearer thought concerning these areas of business development.

5.    Your challenge may be finding the right peope to serve on your team.  Here are some places to look:

• Past or current colleagues
• Past or current managers/bosses
• Friends with appropriate skills or connections
• Graduate students at a local college or university
• Professors at a local college or university

6.    Well, again, you should take a week or two to complete this second part of your business plan and stay tuned to the Micro Biz Coach podcast for Lesson 4 of Creating Your Business Plan when we will talk about how to write the Financial Section.
7.    Drop us a line at comments@microbizcoach.com to let us know how the business planning process is going.

II.    Micro Biz Newz
A.    Today we’re going to focus on some of the Small Business Awards that are left for this year in case any of you are in a position to apply.
1.    Roanoke VA - 21st Annual Small Business Award Nominations Sought.  Deadline June 25
http://www.roanokechamber.org/community_calendar/detail.php?id=464

2.    Amarillo TX - What businesses do you know that have no more than 100 employees...and have been in business for five years as of August 29, 2007...and are locally owned?  Deadline June 22
http://64.233.167.104/search?q=cache:Ej5iZcBs5VUJ:www.amarillo-chamber.org/PDF/TSBA%2520Nomination%2520Form%252007.pdf+%22small+business+award%22+2007+nomination&hl=en&ct=clnk&cd=5&gl=us&client=firefox-a

3.    Seattle WA –

• be a for-profit business or you must be an individual owning a small business;
• be located within the Seattle city limits;
• employ between 1 and 100 people;
• have been in business for at least three years;
• have annual sales of less than $10 million dollars;
• have a current City of Seattle business license and currently paid City B&O taxes. Deadline, July 18

http://www.seattle.gov/economicdevelopment/sba/mayors_small_biz2007_announcement.htm


4.    New York Tristate - The Small Business Awards will recognize 5 small businesses for their best practices and accomplishments in the following areas (1 in each area):
Human Resources • Marketing • Leadership • Sales • Technology
Awards will be presented to those companies that have shown the ability to use their best practices to generate competitive advantages, revenue profits and/or long-term value.
http://www.nyreport.com/index.cfm?fuseaction=Page.ViewPage&PageID=342

III.    Micro Biz Spotlight
A.    Today in the Micro Biz Spotlight:  LEJ Photography.com
B.    LEJ Photograpy offers Wedding, Portrait, and Nature Photography Serving Tallahassee, Florida and Surrounding Areas.
C.    This is an outstanding photography company as evidenced by the photographs found in the LEJ Photography blog:   http://lejphotography.blogspot.com/
D.    For those of you who live or know someone in the Tallahassee Florida and surrounding areas check out LEJ Photography online at lejphotography.com.
E.    If you find a micro business you feel is worthy of our spotlight please email us at spotlight@microbizcoach.com. 

 

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