Summary: Learn what components you should include this section – Business and Company Description – of your business plan.
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The business and/or company description section is the second section of your business plan, after the executive summary.
This section outlines vital details and key aspects about your business such as what you do, your company’s location and what makes your business original.
You should lay out in simple terms so that anyone who is reading your business and/or company description should have no problem understanding the scope of your business idea.
The length of a common business and/or company description ranges from a few paragraphs to several pages.
Let’s see what you should include in this section.
The official legal name of your business as registered.
It can be even a description of how you came up with the idea to give the reader background knowledge about you and your new company. You should answer these questions such as when was the business started and what inspired you to start the business.
The location where company is headquartered.
Goals are your long term plan – where you want your business to be in the future.
Objectives are the steps you will take to achieve your goals. Objectives are usually measurable such as annual sales targets and some specific measures of customer satisfaction. For example, your company aims to increase revenue by 50% within the next twelve months.
Vision statement/Mission statement
This describes your main purpose for starting the business, its guiding principles and values. It should be concise and do not go more than 30 words.
You should include information about the present business atmosphere, your business strengths as well as resources you have to keep your business viable. Do not forget to mention your working partners (if there is any) and their relevant experience which can contribute to your business success.
You should describe your business structure such as sole proprietorship, partnership, corporation or limited liability corporation (LLC). Also, explain why the particular structure works best for your company.
Also, it is good to mention whether the business is new or already established.
This part begins with a short description of the nature of the industry you are in.
Describe the industry’s current state as well as give insights to future outlook and possibilities. You should include details such as any upcoming volatility as well as growth in the industry. Explain how will your business secure itself against the volatility and take advantage of any growth within the industry.