Module 12.8

The Management Plan

Jim Beach & Chris Hanks

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d. Remember

• “Business is about people first and everything else second. Good ideas never succeed on their own.”

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d. 5 Sections

• Management Team

• Board of Directors

• Board of Advisors

• Other Professionals

• Company Structure

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d. Remember

• The way you assemble your management team is an indication of the extent to which you are open to advice and you are able to generate enthusiasm for your company.

• Clearly describe how your team will evolve

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d. Management Team

• Management Team Personnel

• Ownership & Compensation

• Common Mistakes to Avoid

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d. Management Team / Personnel

• Title & Position

• Duties & responsibility of position

• Previous industry and related experience

• Previous Successes

• Education Background

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d. Ownership & Compensation

• Options Pool

• “Skin in the game”

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d.

Common Mistakes to Avoid

• Friends & Family in key positions

• Assuming previous success in other industries translates to success in this one

• Presenting a “one man team”

• Hiring top managers without sharing ownership

• Not disclosing management team gaps

• Vague or unclear plans for filling gaps

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d. Board of Directors

• Elected by shareholders to oversee firm

• Appoint the firm’s officers; declare dividends; and oversee the affairs of the corporation

• Optimal size

• Signaling

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d. Board of Advisors

• No legal liability

• 5-15 people

• Multiple advisory boards

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d. Other Professionals

• Attorneys

• Bankers

• Investors

• Business consultants

• Incubators

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d. Other Professionals

• Substance isn’t as important as the fact that the relationship exists

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d. Company Structure

• Organizational chart

• Prevents tension among “equals”

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d.

THANKS!

Next: Lesson 12-9 The Financial Plan

Buy or Review!

Slide 12.8-14