Dr. Paul Borosky, DBA, MBA
Business Plan Writer · Management Glossary
How Do You Make an Org Chart for a Small Business?
Who approves time off? Who handles the angry customer? If nobody is sure, the business needs an org chart. Even a small team benefits from boxes and lines. Business plan writer Dr. Paul Borosky, DBA, MBA, shows how to sketch one, what to include for each role, and how lenders read it in the management section of a plan.
Questions? Call or text (321) 948-9588. Dr. Paul answers personally.
Last Updated: 11/07/2026 · Written by Dr. Paul Borosky, DBA, MBA
The Short Answer
What Is an Org Chart?
How to make one, in short: list every job the business needs, draw each job as a box, and draw one line up from each box to the job it reports to. Then write names in the boxes, knowing one person may fill several, and circle the boxes the owner fills. Those are the first to hand off.
Does Everyone Know Who Reports to Whom?
In Plain English
Boxes for Jobs, Lines for Who Reports to Whom
An org chart is boxes for jobs and lines for who reports to whom.
Draw jobs, not names. In a small business, one person often fills more than one box, and seeing that on paper shows you exactly where you are stretched.
Watch: Org Charts
Watch Dr. Paul Build an Org Chart
Organizational Chart for a Business Plan
Dr. Paul shows what an org chart looks like inside a real business plan, and what lenders look for in it. (5:27)
How to Write the Organizational Structure of a Business Plan
The org chart is one piece. Here Dr. Paul walks through the whole organizational structure section around it. (5:44)
A Real-World Example
The Billing Company Where Nobody Approved Time Off
A medical billing company in Atlanta, Georgia grows to nine people, and nobody knows who approves time off. If you run a healthcare business, this kind of gap tends to show up right around the time you hire your sixth or seventh person.
The owner draws the chart with roles first, then names. She finds her own name in five boxes. She hands Collections to a senior billing specialist and moves payroll to an outside service, leaving her in three boxes with a plan to fill two more.
From Dr. Paul’s Fabled Forest
Alton the Ant’s Twenty Boxes
Doctor Owl was at the general store, testing reading lamps by switching them on and off, when Alton the Ant scurried in with a stack of papers.
“Twelve ants work for me now,” Alton said, “and every single one of them reports to me. We need an upgrade! New tunnels? New tools?”
Doctor Owl handed him a blank scroll. “Draw every job in Anthill and Winding Tunnel Tech Solutions as a box. Just the jobs. Names come later.”
Alton drew twenty boxes. Then he wrote names in them. His own name went in fourteen.
He stared at the scroll for a long time. “Oh,” he said quietly. “So that’s the upgrade.”
Just one of many stories from Book 1 of Dr. Paul’s Fabled Forest Business School Series.
Dr. Paul’s Insight
Dr. Paul includes an org chart in plans with staff, even small teams. It shows the reader the owner has thought past day one.
Put It to Work
How to Make an Org Chart in Five Steps
- List every job the business needs. Jobs, not people. Include the ones you do yourself.
- Draw each job as a box. Keep the labels short and plain.
- Draw one line up from each box. Each box should report to exactly one other box.
- Write names in the boxes. One person may fill several boxes. That is normal in a small business.
- Circle the boxes with the owner’s name. Those are the first ones to hand off.
Watch Out
Pitfalls When Making an Org Chart
If you start with people, you miss the jobs nobody is doing.
Two lines up from one box usually means mixed orders. Pick one.
Redraw the chart each time you hire or a role changes.
If work really flows a different way, the chart should show that.
Why It Matters
Benefits of a Clear Org Chart
- Clearer reporting lines
- Shows gaps in coverage
- Easier hiring plans
- A stronger management section
In Your Business Plan
How Org Chart Shows Up in a Business Plan
Many lenders and investors look for an org chart in the management section, often both today’s and next year’s. It shows who runs what and when new hires come in.
Sample plan excerpt: Management and Organization
“The owner currently fills the roles of billing lead and office manager. An office manager will be hired in Month 6 (budgeted in projections), followed by a billing lead promoted from within in Year 2.”
FAQ
Questions Owners Ask About Org Charts
What should a small business org chart include?
Do you need an org chart in a business plan?
What tool should I use to make an org chart?
More From the Series
Keep Building Your Business
Every book in Dr. Paul’s Fabled Forest Business School Series teaches one subject through short stories, real terms, and one-page worksheets.
Dr. Paul Borosky, DBA, MBA
Dr. Paul is a business consultant and author with 14+ years of experience and 1,000+ written business plans. He works with owner-run small businesses on plans, financial projections, and the systems that let a business run without the owner doing everything. This page is part of the glossary for Management and Leadership for Small Businesses, Book 1 of Dr. Paul’s Fabled Forest Business School Series.
This page is for general educational purposes only. It is not legal, HR, or other professional advice. For decisions about your own business, consult a qualified professional.