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Module 12.8

The Management Plan

   Jim Beach & Chris Hanks
© School For Startups. All Rights Reserved.
                                                                  Remember

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




                                                                                                Slide 12.8-2
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                                                                   5 Sections

                                              •   Management Team
                                              •   Board of Directors
                                              •   Board of Advisors
                                              •   Other Professionals
                                              •   Company Structure


                                                                                Slide 12.8-3
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                                                 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
                                                                               Slide 12.8-4
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                                                         Management Team
                                              • Management Team Personnel
                                              • Ownership & Compensation
                                              • Common Mistakes to Avoid




                                                                            Slide 12.8-5
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                                                    Management Team / Personnel


                                              •   Title & Position
                                              •   Duties & responsibility of position
                                              •   Previous industry and related experience
                                              •   Previous Successes
                                              •   Education Background
                                                                                             Slide 12.8-6
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                                                    Ownership & Compensation

                                              • Options Pool
                                              • “Skin in the game”




                                                                               Slide 12.8-7
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                                                     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
                                                                                                Slide 12.8-8
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                                                            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


                                                                                                Slide 12.8-9
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                                                            Board of Advisors

                                              • No legal liability
                                              • 5-15 people
                                              • Multiple advisory boards




                                                                                Slide 12.8-10
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                                                            Other Professionals

                                              •   Attorneys
                                              •   Bankers
                                              •   Investors
                                              •   Business consultants
                                              •   Incubators


                                                                                  Slide 12.8-11
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                                                           Other Professionals

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




                                                                                                Slide 12.8-12
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                                                          Company Structure

                                              • Organizational chart
                                              • Prevents tension among
                                                “equals”




                                                                              Slide 12.8-13
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                                              THANKS!


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Next: Lesson 12-9
 The Financial Plan

                                                                Slide 12.8-14