Writing a business plan for adding positions? The personnel forecast is usually just one table in the financial pro forma included as part of a formal business plan, so if there is a reason to develop an entire proposal about the addition of staff or executive team members, you should outline their contribution closely. What value do these people add to the organization? You should be able to spell out their skills and precisely outline the benefits your company can reap by recruiting these individuals. Also, justify their compensation by showing industry or market comparables (salary.com can get you started) and if their positions are driven by commissioned sales, highlight the percentage scale you will use with them on staff. Also, include the full personnel table just as a matter of course – most private investors or bankers considering whether to extend a loan or LOC will want to see the added position(s) alongside all of your existing staff.
This isn't the only consideration that your business plan will need to make regarding the financials. In order to show what benefit the added positions have on the organization as a whole, you should provide a 3-5 year financial forecast illustrating projected revenues, expenses, cash flows, balance sheet, and – if you're taking on additional capital to bring these employees on board – a break-even point and payback or ROI scenario for outside investors. The added positions should be profiled in detail – with exhaustive bios of anyone in particular you've identified as a target – and your financial model should show a monthly projection for how the added help will impact your bottom line. Ultimately, the business plan for adding positions simply needs to justify the expense of the additional labor – accomplish that, and you're in the clear. Need help with the document or the projections? Call MasterPlans. We have been working on specialty business plans since we started business in 2002, and we can prepare a business plan for you in record time. Quotes and project consultations are always free. Consultants can be reached at 877-453-2011 during normal business hours, Pacific Standard Time.
