Module 6: Organizational

Components of a Business Plan

ENTPLA1 – Thalia Atendido

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 ORGANIZATIONAL PLAN
• Form of ownership
• Partners/Principal Shareholders
• Organizational Structure and Job Descriptions

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 OWNERSHIP AND CAPITALIZATION

Three basic forms are:

Proprietorship.
Partnership – a variation is the LLP.
Corporation -

The entrepreneur should evaluate the pros and cons of the legal forms
prior to submitting a business plan.

The entrepreneur should determine the priority of several factors,

including tax factors.

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 Developing the Management Team

Potential investors are interested in the management

team, its ability and their commitment to the new
venture.
• Investors usually look for teams that operate the
business full time.
• Investors perceive an entrepreneur taking a large
salary as a lack of commitment to the business.
The entrepreneur should consider the role of the board
in supporting management of the new venture.

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 TEAM MANAGEMENT
The team must be able to accomplish three functions:
1. Execute the business plan.
2. Identify fundamental changes in the business as they occur.
3. Adjust the plan based on changes in the environment and market that will
maintain profitability.

You will need to assume the responsibility of determining what skills and
abilities are needed to meet the goals in the business plan.
1. The personality and character of each individual needs to be considered.
2. The organization culture will be a blend of attitudes, behaviors, dress, and
communication styles that make one business different from another.
3. The entrepreneur will need to be able to delegate responsibility in order to
create a vibrant organizational culture

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