As you develop your business plan, a “management team” needs to be pulled together, with serious thought given to the key positions that need to be filled and who should fill them.
The path of least resistance should be avoided – that is, placing close friends and relatives in key positions simply because of who they are. There are two criteria to justify placing someone in a position on your management team. First, does the person have the training and skills to do the job? Second, does the person have the track record to prove his or her talents?
Often, a management team evolves over time. Members of your team may wear several hats until the company grows and the company can afford the additional team members. A large business may have some or all of the following positions.
Lead Management Positions
- Chief Executive Officer (CEO) or President — This person will be the driving force behind the company; he or she will make things happen, put together the resources to support the company and take the product to the market place.
- Chief Operating Officer (COO), Vice President of Operations or General Manager — Whether called an organizer, an inside manager or an operations person, this person is the one who will make sure company operations flow smoothly and economically. He or she is responsible for making certain that necessary work is done properly and on time. An understanding of details of the business and an enjoyment of handling details are necessary.
- Vice President of Marketing or Marketing Manager — Few businesses can be successful without marketing their products to the customer. The individual in this slot must have both marketing and industry experience.
- Chief Financial Officer (CFO) or Controller — You may wish to establish two positions or combine both roles into one. The responsibility of one role is to seek money; that is, to look for investors and deal with banks, lenders, etc. This function also could be assigned to another team member, such as the CEO or the General Manager. The responsibility in the Controller role is to manage money and watch over the assets of the company. It is not uncommon to have the same individual seek money and manage money.
- Vice President of Production or Production Manager — Good production managers with specific industry knowledge and experience are sometimes difficult to find. In the beginning, you may subcontract some production.
