Wondering about using names in a business plan? There are two ways to look at this issue. For anyone you know will be associated with the company – yourself as the owner, for example – use your full name and bio in the management team section and in the executive summary. If there are certain people you want to bring on board, but they cannot commit (for fear of losing their current jobs, for example), give a vague summary or simply note the position name and start date and say that you have a strong candidate in mind who will be named later. Another issue to wrestle with is “name dropping.†When does this occur? Some examples:
• You list out high-powered executives you'd like to have on your board, whether you know them or not
• You mention that a recognized executive in the same market space might be part of your organization in time
• You assert that someone is a family or personal friend and will be advising you
• You insert the name of a luminary (Buffet, Gates, etc.) to give an idea of what sort of minds you're looking for
When is it appropriate? In short, it's not. Unless you really know these people there's no sense in making a hollow reference to them. It's a common misconception that your business plan will be stronger if you name someone who has a recognizable name as an “advisor†or “consultant,†but in truth investors will see right through this. Stick with the people you know will be on your management team and make an honest concession of the gaps that exist in the team – this way your backers know what they have to work with and who they might need to appoint. Want to learn more? You can get your business plan questions answered – or your whole plan written – at MasterPlans.com. Call 877-453-2011 today!
