The purpose of the business description is to give your reader an overview of your company, including the company structure, current status, future plans and any other information they may need to know. The business description in a business plan gives interested people some insight on your company. Letting them get to know your company better will help them to feel more connected to your business, which could affect how they make decisions regarding financial matters with your company. When you first sit down to write the business description portion of your business plan, you may feel overwhelmed. There is so much to say about your business, you may not know where to start. Plus, you do not want to leave out anything important.
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Your business description is one of the most important elements of your business plan because it introduces the goals and possibilities to potential investors, partners or other supportive parties. This article explains what a business description is, lists the steps and tips for creating one and addresses some frequently asked questions regarding business descriptions. The business description is an aspect of your business plan that combines the key details of your company, such as what it does and what makes it unique. If your business plan is relatively simple, you can keep it short by detailing the industry and product in a paragraph each and then using three to four paragraphs to describe your business and its components for success. A longer business description may be necessary in some cases but you should always strive to communicate all of the required information as succinctly as possible. Though primarily used when first starting a business, it should be regularly maintained and updated as your business grows. This information is used for many reasons but is especially useful to potential investors and lenders so that they can understand your concept, the benefits it will provide your customers and how your brand will be placed in the market.
Business Plan 101: General Company Description
Business plans range from 20 to 50 pages in length, but, typically, they all contain the same sections. Your business plan should include: The Executive Summary. This is a concise one- to four-page summary illustrating the key points that are detailed in each section of the ensuing business plan.
The company summary in a business plan —also known as the company description or overview—is a high-level look at what you are as a company and how all the elements of the business fit together. An effective company summary should give readers, such as potential investors, a quick and easy way to understand your business, its products and services, its mission and goals, how it meets the needs of its target market, and how it stands out from competitors. Before you begin writing your company summary, remember to stick to the big picture. Other sections of your business plan will provide the specific details of your business. The summary synthesizes all of that information into one page.