What is Organizational Plan?

The Organizational Plan is the section of the business plan that identifies the form of ownership the
business venture will take. It provides background of the management team; describe the organizational
structure, including the management team’s role, responsibilities, and reporting relationships; outlines
the planning, decision-making, monitoring, and evaluation processes; and spells out the role of board of
advisers, among others.

Forms of Ownership

*three basic Legal forms of business ownership

-sole Proprietorship

-Partnership

-Corporation

Organization Structure

This section of the organizational plan will show the reader of the business plan who the
principal owners of the business are, who constitutes the management team, and who provides valuable
advice to the business owners and/or management team. In a small entrepreneurial venture, the
organization structure could be simple as the owner-manager being at the helm of the enterprise with a
few individuals directly reporting to him. As the workload increases, though, the business will ned
additional employees, with more defend roles and responsibilities.

Business Owners

One section of the organization plan could be a listing of the business owners and their
qualifications. Their previous entrepreneurial experience, if any, and the extent of their investments in
the business could also signal who among them would have a strong influence in determining the
general directions the business will take.

The Management Team

If the enterprise has a management team that is largely distinct from the business owners, it is
best to highlight their qualifications, skills, and managerial experience, especially in relation to the
position, for which will be handling. The goal is to convince the reader of the business plan that the
management team is composed of a good mix of individuals with complementary skills that will increase
the chances of the business being run effectively.
 Charmaine D. Reyes
President

Iranie Lyn Toquero Ma. Theresa Obina Ivy May Toquero

Purchasing& Production
Sales and Marketing
Manager
Manager Finance & HR Manager

Sales and Marketing Administrative

Production Team
Team Assistant

Sample of Organizational Chart

Business Advisers

It is rare for a new (or proposed) venture to have all the expertise it needs to grow the business
at the onset. It is best to b candid about this. The business owners, however, reinforce their
management team by having the board of advisers or consultants – a group of individuals that the
company invites to provides their inputs and insights on how to run the business. This allows the owners
of the new venture to draw upon these individuals’ expertise (e.g. knowledge about the industry, about
the market or about legal matters) and extensive business and/or managerial experience. The business
owners can engage their advisers through regular face-to-face meetings, or through phone calls or
teleconferencing, if this is convenient to both parties. Business advisers who are well-respected in the
community might also be able to rub on their goodwill on the business venture that they are supporting,
aside from linking them to reliable suppliers and prospective markets.

For new ventures that might not have the personal network from which to get advisers, they
can avail of support programs offered by the government, such as the Department of Trade and
Industry’s SME roving Academy (SMERA), an ongoing learning program meant to develop micro, small,
and medium enterprise (MSMEs) into competitive players in both the domestics and international
markets. SMERA is implemented with the help of partner institution from the local government units,
industry associations, business services development providers, training institutions, and academe. It
provides small businesses with an SME counselor, who, provides the entrepreneur with general advice
on the training that he might need after conducting a preliminary diagnosis of the needs of the business.
He counselor also keeps track of the progress of the entrepreneur that availed of the business
development services offered.