Is your organizational plan feasibly?

Organizational plan

This is the business part of your business. You will need to figure what type of business you are going to have, how to manage it, how are you going to manage your money, your time and what people will be doing what, who's responsible for what, and what are you going to pay for that service.

Choosing the Form of Organization

One of the fundamental decisions a new business owner faces is choosing the form of organization for the business. The different forms of businesses you may choose are: sole proprietorship, general partnership, limited partnership, or a corporation. Click here to view the different types of organizations, and their advantages and disadvantages.

Management considerations

The information you research and record here will be used in your Your Feasibility study, Business plan, Employee or Operations Manual, and for your reference.

I've seen many businesses go under because of the lack of attention to this section of your business planning. It may seem simple, but if you don't think through all the various variations now, it will be easy to end up making or someone else in your organization making the wrong decision and sending you spiraling down. It is important, at the very beginning, to determine who has the last word, who is responsible for what and what the consequences are.

	Decision Making
The buck stops here: Who makes the policies, How will they be enforced, who will do the day by day managing, what steps need to take place to come to a decision, who has hiring and firing authority, If you are owner/operator you will do all that - but what policies or guidelines will you use to make these decisions.
If you have departments, Some businesses organize their business into departments - like marketing, accounting, production etc.. If you do that you will need to figure out who will have the final say in any decision that effects that department, what is the responsibility of each department, How they will communicate with each other.
If you are a corporation, What type of shares will you have, How many, how will they be sold, what power will each share holder have, who makes up the board of directors, how are they elected, are they paid, when and where will the meetings be held, what are their responsibilities
Single owner/operator Home-Based Business - what are the policies are you going to use to make your decisions? When will you say NO,
	Accounting
Who will do the bookkeeping, the taxes, what receipts do you need to keep and where will you keep them? who writes and signs the checks? is there a double check system for accuracy? how will you pay the bills, daily weekly monthly? what investing will you do? what do you have to fall back on when the income is less then you anticipated?

Business Plan
Organization Plan Supporting Statements

Management Philosophy What criteria are you going to use to make decisions for your business? what is the philosophy behind that decision? What "separation of power" have you set in place?
Key Personnel Assessments Who or what company are you going to hire to hold the top management positions? What are their qualifications? If you are doing each positions, list your qualifications and where you will go for any assistance needed.
compensation & incentives How are you going to compensate your Key personnel? What incentives are you going to offer to encourage performance?

Summary

Executive summary
Summarize your information in this section to use in the Executive Summary portion of your Business Plan