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Tuesday, January 6th, 2009
articles.php?which=INeedHelpWithMyManagementSummary
I Need Help With My Management Summary!

If you troll the Internet for tips on writing a business plan, you'll more than likely stumble on the old chestnut that you need a "strong management summary." But what if the only person involved in your start-up so far is, well, you? This week reader Kathryn wrote in, asking: "I keep hearing that I need a solid management section in my business plan. Is my resume good enough? And what if I'm the only management team member I've line up so far? Does that look bad?"

First, the bad news: if you're using your business plan to seek funding, simply cutting and pasting your resume into the document isn't going to cut it. It looks sloppy and lazy. You want your management section to be concise and focused, and including a resume that lists all your jobs since you graduated from college doesn't do anything for you. Not only do you stand a good chance of losing your reader, but it could have the effect of actually making you look less qualified to operate a business. Because, let's be honest, managing a Subway in high school really doesn't equip you run to a day care 20 years later.

What you should do is cull out the most relevant bits of your resume and shape those into a short paragraph or two. Stick to the experience that demonstrates that you can operate whatever business it is that you'd like to start. And don't go off on tangents about your personal life unless they're directly related to your start-up. Sure, it's wonderful that you like to participate in triathlons, but unless it's relevant to your business, the only thing investors will see is a potential distraction from you operating your start-up properly.

As far as what to do if you're the only person affiliated with your business as yet: first determine if you need to hire other people right off the bat. Are you running a small e-commerce business? In that case, you may not need a COO or a CFO right away. However, if you're planning a start-up that actually needs substantial support and management, include very brief paragraphs describing the positions you intend to fill. Indicating you understand that you need to hire other people shows experience and forethought- something investors obviously like to see.

Lastly, the same rules apply to your management summary that apply to other sections of your business plan. Keep it short and on point. Don't ramble. And please, don't try to puff up your experience. Trust us, after prodding you in person, an investor will be able to tell that what "Vice President of Customer Relations and Management" really means is that you were a clerk at Macy's in college.

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