70 CHAPTER 4 KNOW YOURSELF
Many businesses start in a similar way to the structure shown. As they grow, each divi-
sion head gains responsibility for additional products and localities. Large companies
sometimes turn this upside down so that the first level below the CEO is allocated by
regions or business areas (divisional organisation). Within divisions, there is usually a func-
tional organisation.
You will have heard no doubt about matrix organisations. In essence, people are bor-
rowed (full- or part-time) from their place in the main organisation chart to work on
specific projects.
As you review your activities and the world environment, try to form a fresh view about
how you should be organised. Do not change for the sake of it, but restructure if required
by changing circumstances and if it will enhance performance or morale.
SMALL PARTS ARE MANAGEABLE
For the moment, having examined your organisation structure, think about the most
important areas of your business from the viewpoint of people reviewing your business
plan. Readers usually want to see costs (and income) broken down by major activities.
Choose two or three sensible categories depending on the nature of your business.
A company manufacturing computers might show spending on research and devel-
opment, production, and sales and marketing. A service-based organisation would
include customer support or after-sales service if these were important activities, while
a company writing software to order might separate out development, implementation,
training and support costs.
It almost always makes sense to identify separately outlays on marketing and sales.
Boards and shareholders always want to see that you are spending wisely on these areas.
There is no point producing an excellent product if you do not make sales because no
one knows about it.
The all-important management team
Your next descriptive job is to explain the organisation of the business. You need to dem-
onstrate that:
the business is organised in a way that will allow everyone to operate successfully;
there is good corporate governance (the board is up to its job);
the management team has the required qualities and skills; and
you have the necessary supporting structure in place.
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.