Administrative Issues in Business Planning

The third major section of any business plan is the administrative issues section. This section deals with the analysis of how the management and finances of the company will be handled. The author should be prepared to discuss at least general policies he or she intends to incorporate into the business or organization.

The Devil is in the Details

The administrative section deals primarily with three of the four administrative functions; control, supervision, and tracking. Readers of a business plan want to know how the organization will be operated, who the management will be, and how performance of the organization will be measured and reported.

The first subsection will describe, generally, the policies the author will use to maintain control over the organization. This may include a description of managerial positions and their responsibilities that will be used as a guideline for finding the right candidate to fulfill those duties.

This section will also contain details on financial control and accountability in a second subsection containing detailed financial statements (if the organization is an on-going operation) or detailed startup expense reports and financial projections for at least the first three years of operation.

Authors of business plans will frequently make the mistake of including extensive charts within this section. Any charts or major tables should be placed in the end-matter of the business plan as an appendix. The administrative section itself should be a descriptive essay on the contents of the charts and not use embedded charts as a crutch.

Final Thoughts

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