The management and organization section says who owns the business, what legal form it takes, who does which job, and who you will hire. For a micro business, it is often one or two pages: the owner's background, the role of family members or partners, a simple chart of who reports to whom, and your plan for staff, pay and employer registrations.
Legal form and ownership
Start by stating the legal form. Most micro businesses are sole proprietorships registered with DTI. Others are partnerships, one person corporations or corporations registered with SEC, or cooperatives. The form affects who is liable for debts and how profits are shared. Compare the options in sole proprietorship vs OPC vs corporation.
If more than one person puts in puhunan, write how much each contributes, how profits and losses are shared, and who makes final decisions. Put the details in a written agreement and attach it in the appendix. Family businesses run into trouble when this is left unsaid.
The owner and key people
For each key person, write a short paragraph: name, role in the business, relevant experience, and training. Lenders want to know whether the people running the business can do the work. Relevant experience counts even if it was informal: helping run a relative's store, cooking for events, managing a team at a previous job.
Be honest about gaps. If nobody on the team knows bookkeeping, say who will handle it: a part-time bookkeeper, an accountant, or a short course the owner will take. Gaps you name and plan for look better than gaps a lender finds.
Staff and roles
List each position, how many people, full-time or part-time, main duties, and planned pay. Show who reports to whom in a simple chart or list. A micro business chart can be three lines: owner at the top, then a supervisor or senior staff member, then helpers.
Your staffing plan should match the daily routine in your operations plan and the salary lines in your financial plan.
Your duties when you hire
Hiring brings legal duties. Plan for them in this section so the costs are in your plan from the start. Read hiring your first employee for the full steps. In summary, you register as an employer with SSS, PhilHealth and Pag-IBIG, pay at least the minimum wage for your region, and check whether you need DOLE establishment registration.
Family members who work in the business regularly should be treated like staff in your plan, with a role and pay, even if they are paid informally at first. It keeps your cost figures honest.
Worked example: a family piggery
Example: management section for a backyard piggery in a Batangas barangay. This illustration uses placeholders for names and pay.
"[Business name] is a sole proprietorship owned by [owner], who registered the business name with DTI. [Owner] manages the farm, buys feeds and sells to buyers. [Owner] has helped raise hogs on the family lot for [number] years and completed a swine raising training from [provider] in [year]. [Spouse] keeps the records and handles cash, and is paid ₱____ per month. One farm helper will be hired full-time to feed, clean pens and monitor animal health, at ₱____ per month, which is at or above the regional minimum wage. The owner will register as an employer with SSS, PhilHealth and Pag-IBIG before the helper starts. A veterinarian from [provider] will be on call. Bookkeeping will be checked by a part-time bookkeeper each quarter."
Common mistakes
- Leaving out the legal form or ownership split.
- Listing family helpers as free labour.
- Planning to hire without budgeting for SSS, PhilHealth and Pag-IBIG.
- Pay below minimum wage in the plan.
- No one assigned to bookkeeping and tax filing.
- Resumes that list jobs but not the skills that matter for this business.
Management and organization checklist
- State the legal form and who owns what share
- Write a short profile of each key person
- Name skill gaps and who will cover them
- List every position with duties and pay
- Draw a simple reporting chart
- Budget for employer contributions and minimum wage
- Attach any partnership agreement in the appendix
Questions people ask
- Do I need an organization chart for a one-person business?
- A chart is optional. Still write who handles each function, such as buying, selling, bookkeeping and tax filing, even if the answer is you for most of them.
- Should I include family members who help for free?
- Include them with their role. If they work regularly, put a pay figure in the plan so your costs reflect what the business would need if they stopped helping.
- When do I register as an employer?
- Before your first employee starts work. The guide on hiring your first employee lists the agencies and steps.
- Does the legal form matter to lenders?
- Yes. It tells them who signs for the loan and who answers for the business's debts. Read the comparison of sole proprietorship, OPC and corporation before you choose.