The primary reason for the breakups was changing interests or interpersonal conflict among the team members. It is important that each person's duties and responsibilities be determined in advance. This part of the business plan helps clarify the division of work and the division of management as well as identify potential areas of overlap, duplication, or weakness. Each partner's right to increase, decrease, or even sell his or her part of the business needs to be stated in this part of the business plan. If you will be using the corporate form of organization, then the business plan should also profile who will be serving on the firm's board of directors.
Most states require that the board be comprised of at least three people.
Since the board is elected by the stockholders, it is not uncommon to find the major stockholders on the board. Nevertheless, the board should provide additional strength to your management team. It is advisable to have people on the board who will provide a sense of direction, who will be candid in their review of operations, and who will contribute valuable advice to the management team. Your board should have at least one person on it who has started a business from scratch and guided its growth for at least five years. This person may keep you from committing many of the classic mistakes made by firsttimers.