How to Write a Business Plan – Part 2 – Company Description

How to Write a Business Plan – Part 2 – Company Description

How To Write A Business Plan

The business plan boot camp will consist of nine parts in total, each tackling a portion of the plan and the basics of how to handle its successful creation as prospective businesses look to secure funding and backing. Put together, these skills will help create a business plan that will wow potential investors.

Part 2. Company Description

In the Company Description section of your business plan, you’ll be writing a review of a variety of elements unique to your business. In this section, you want to help your investors understand the mission and value-add of your business to the market.

The company description seeks to answer two fundamental questions in a high level format and give an overview of what your company is all about. It is not overly technical, but care should be taken to do it right.

First the questions you’ll answer throughout the company description:

Does your business solve a real problem?

Can money be made from solving that problem?

Potential investors will look at the executive summary first, but the company description offers the opportunity to get across what your company is all about in a succinct, passionate manner. A less concise elevator pitch is the most easily relatable format. Here you explain the ins and outs of your company from the name and business structure to your mission and vision statements. There isn’t a set number of sections to incorporate, but you’ll want to include at least:

Company Name                                             The official name registered in your desired state

Structure of the Business                             Sole proprietorship, LLC, partnership, or corp

The Owners and Management                    Key figures

Intended Location                                         Headquarters

Business Objectives                                      Divided into both long and short term goals 

Products, Services, and Marketplace          Who is your target market?

                                                                        What will you provide them?

Each part of the company description can be written out in paragraph form. As you describe each section, be sure to include the essence of your brand. This is not a table of contents, but rather a description of who your company is, what it is all about, and why it matters. The following tips will help you put together a description worth reading:

It’s More than an Elevator Pitch

The company description begins with what is basically an elevator pitch. But it isn’t just that. You do need to get across the key details of your company, but you have a little more space to do so and you can pick and choose what information you want to get across. The main detail will follow. The most important aspect of the elevator pitch it whetting the appetite of the reader. Make them want to keep reading with the best relevant information that you can muster.

Concise Passion

Most elevator pitches come from an aspiring entrepreneur who knows she needs to include the pitch, but not how to get it across. As a result these forays appear to be the bullet points of a fact-finding mission plopped down on paper, hopeful with fingers crossed that they cover the correct bases.

The better elevator pitches and company descriptions come from a place of passion. The aspiring entrepreneur shows that her organization is ready to take up the call to action, that she comes from a place of passion. This passion though, is backed by enough information to show that she has the background and experience to use that passion successfully.

Leave the Detail for Later

Getting this passion and experience into a small piece of writing is the tough task many fail at. The key is to hone it down over a period of time, practicing the information and making sure that it is not vague, but also that it does not ramble. Facts and figures will come into play later. Here both the schooled businesswoman and the bleeding heart come together as one.

Don’t Give a Reason to Stop Reading

Too many business plans are thrown together checklists, devoid of passion, with numbers that might support a product, but which are not explained in a way that makes that readily understood. While the company description will not be filled with charts and graphs, it is still, like every part of the business plan, an opportunity to succeed, but also an opportunity to push readers – and potential investors – away.

Read through each line of your company description as if you want the business to fail. How might it? Where are the typos, the moments that lack clarity? What will make someone put it down? Now fix those aspects. Make them shine.

About author

Michael Barry
Michael Barry 31 posts

Michael Barry is the Editor-In-Chief at AgeOfTheSmallBusiness.com. Currently living in Boston, Massachusetts, he received his B.A. in Financial Economics from St. Anselm College and his MFA in Creative Writing from the Stonecoast Program at the University of Southern Maine.

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