Company
Description: Business
Plan Basics
The company description section of your
business plan should outline your company's basic background
information and business concept. Explain in general terms
who you are and what you do. It should also cover the history
of your company, how you reached this point, and where you
intend to go in the future. Consider covering the following
in your company description section:
Legal Description
Include details about where and when the company was
formed, where and when it was incorporated, a one line description
of what business you are in, and a brief overview of what
your company offers. If the location of your company is important,
explain the advantages and benefits to your reader.
History of The
Company
Provide a general overview of the history of your
business. Organize details of your company into a timeline
or narrative format, and include your achievements and significant
milestones. Explain why you started the company, the driving
force behind its inception, and how your product/service mix
has changed over time. Include historical data on sales, profits,
units sold, number of employees, and other important facts
to build a case for your business.
Current Status
Provide a snapshot of where your company is today.
Are you in one location, what do you sell now, how many employees
do you have, and how successful are you? Point out your current
strengths, but also honestly and frankly address your weaknesses.
Investors know all businesses have weak points, and you demonstrate
business maturity by acknowledging your weaknesses and outlining
steps to combat them.
Future Goals
This section gives your reader an idea of where your
company is heading. What are looking to accomplish over the
next 1, 3, 5 and 10 years? Relate these goals to the investment
you seek so an investor understands why you need their money
and what you intend to do with it. Explain the overall approach
for reaching growth and profit goals in optimistic language,
but make sure it's realistic. It's easy to make rosy projections
about the future of your company, but it's harder to make
them believable.
For more information on writing the Company Description section
of your business plan, try:
Email
us at BizPlanIt if you have comments or suggestions about
our Virtual Business Plan.
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