Chapter # 4

Organizational Plan

Organizational Plan
The organizational plan section of a

business plan looks at the people aspects

and the legal form of the business.
Includes:

Management Team

Organizational Structure

Legal Form of Business

Management Team
Includes detail of:

Founders of the business

Partners and Investors

Key Managers and Employees

Advisory Staff

Legal Advisor
Technical Advisor
Financial Advisor

Organizational Structure
Defines the hierarchy of the company,

defining Who reports to Whom.

Key Departments
Roles and Functions of each department
Departmental Teams
Responsibilities of each team member
Job Titles and Job Descriptions

Legal Form of Business

Form of business differs on the basis of following

issues:
Ownership
Liability of Owner
Cost of starting business
Continuity of business
Capital Requirement
Management Control
Distribution of Profit & Loss

Tax Attributes of various legal forms

Taxable Year
Distribution of profit to owners
Organizational cost
Capital Gains
Capital Losses
Initial Organization
Limitations on loss deductible by owner
Medical Benefits