Personnel Table

The personnel table of your business plan, or headcount, should accurately reflect the number of persons who will work for the organization and general pay levels. Sometimes in basic business plans its easier to lump them together than to list them individually. If you will have 5 programmers, make one line for "Programmers" and give them all the same pay or average the pay if they will be different.

A common mistake in the personnel plan is to put owners salaries when a sole proprietor structure is used. In a sole proprietorship, the owner takes draws from profits, not payroll, which often has a 15-17% premium added to it for social security, payroll tax, Medicare, and workman's compensation. While the owner may need to pay some of this, it will come from the draws he or she takes, not the business directly. This leads to a discussion with your accountant regarding the benefits of an LLC, S-Corp, or C-Corp depending on the number of people involved and the type of business you are operating.

If the plan is for a bank or you personally, broad categories that get with in a few percentages are fine. If its for an investor or operation guide, break them out as much as possible so you can see how hiring and firings affect the bottom line of the business plan.