A small business plan includes a business description. It lays up the goals and how to achieve them. And this post will show you all that a business description entails with examples.<\/p>\n
According to the Small Business Administration, a good business plan should include the following elements:<\/p>\n
The business description is usually included immediately after the executive summary in most business plans. The purpose of the business description is to give an overview of the company, including what it does and how it differs from others in the same industry. This description goes into great detail about the company. It includes information like the company\u2019s location and the number of employees who will be employed, in addition to detailing goals and how they will be reached.<\/p>\n
It also provides a detailed description of the company\u2019s vision and goals, which aids lenders and stakeholders in forming a realistic picture of who and what the company is. A business\u2019s description differs from one to the next. It will however include the following in general:<\/p>\n
The business\u2019s official name<\/p>\n
To pique the interest of investors and lenders, you must know how to pitch which starts with writing\/preparing a business description. Right away, your description should address who, what, where, when, why, and how.<\/p>\n
So, how do you write a business description? We\u2019ll go over the 5 W\u2019s (and 1 H) to keep in mind when writing your first copy.<\/p>\n
For starters, Who are you? Who is your business?<\/p>\n
In the business description part of your business plan, double-check that your company\u2019s name is obvious. Include your name (along with the names of any other owners) since lenders and investors would want to know who is behind the company.<\/p>\n
Who is your ideal client? Who are you trying to sell to? Make sure you know who you\u2019re talking to when you\u2019re describing your company. There\u2019s a good probability that no one will be interested in your business if you don\u2019t know who your target consumer is.<\/p>\n
What is the nature of your product or service? Lenders and investors may pass on your idea if they can not comprehend what you\u2019re offering or why it\u2019s important. When telling lenders and investors about your company, be specific, narrow, and focused.<\/p>\n
What are your business objectives? Set short- and long-term goals that are attainable. Include the objective in your description if you expect to sell $20,000 worth of product or service by the end of the second month.<\/p>\n
Where is the location of your company? List the address of your business if it is currently open for business. If you\u2019re still looking for office space, make sure you mention where you want your company to be.<\/p>\n
When will you put your business plan into action and start seeing results? Include the date you intend to start your business (or when you opened it).<\/p>\n
When do you intend to achieve your objectives? Also, discuss the timing for your primary objectives (both short-term and long-term).<\/p>\n
When do you believe you\u2019ll retire from your company? Remember to talk about your departure strategy. Be explicit about when you expect to retire in 20 years, sell your firm in 15 years, or close it down in 10 years.<\/p>\n
Why would a buyer want to purchase from you? Describe how you differ from the competitors. This is where you can discuss the uniqueness of your company. Lenders and investors want to know why customers would choose your small business over one of your competitors.<\/p>\n
Why are you in this line of work? Make sure to include your company\u2019s mission statement as well. A mission statement explains why your company exists and what your objectives are.<\/p>\n
How is your business\u2019s structure going to be? Which type of company will you start: a sole proprietorship, a limited liability company, a partnership, or a corporation? Also, explain why you chose the structure you did. Mention any small business advisors you engage with to aid with registration procedures, rules, and liabilities (e.g., a business attorney).<\/p>\n
How are you going to attain the company objectives you\u2019ve set? Will you hire people to assist you, or will you manage all of your obligations on your own? Discuss the steps you\u2019ll take to achieve the objectives you\u2019ve set.<\/p>\n
How do you see your business developing in the future? Include a statement about your organization\u2019s vision in your company description. A vision statement is a declaration that describes how you want your company to look in the future.<\/p>\n
The opening paragraph of a business description should be quite descriptive, including all of the important details about the company. You want to make sure the company\u2019s name is conveyed properly in this paragraph. Also, be sure to include the company\u2019s current outlook as well as its future potential.<\/p>\n
It\u2019s also a good idea to add facts and information about the markets where your products\/services will be sold. You should also include any new items or advancements that are likely to hit the market and could have a favorable or negative influence on your business.<\/p>\n
Below are some examples of a business description from different companies;<\/p>\n
People are more likely to connect with a story than with a list of facts. Take the Zappos method and tell a story about your business if you want people to remember the facts on your business page.<\/p>\n
To be honest, not every brand has a compelling story to share \u2014 and that\u2019s fine. The fact that you\u2019re providing information in the form of a story is more essential than the content of the story.<\/p>\n
What can you say about yourself when you\u2019re a corporation as large as Google that hasn\u2019t previously been said?<\/p>\n
Unlike many corporate descriptions that go on and on, Google\u2019s defining events are highlighted in one paragraph each.<\/p>\n
This may appear simple, but when you consider how much Google has accomplished and the hundreds of acquisitions and initiatives it has been a part of, it\u2019s difficult to condense it into a single page.<\/p>\n
While they do include a link to a website detailing the company\u2019s history from 1998 to 2014, Google does not seek to bore you with the facts right away.<\/p>\n
Anyone can keep their illustrious history brief if Google can.<\/p>\n
This example of a business description is, without a doubt, the most visually striking of all of our examples. Philips uses large, bright photographs across its business profile, breaking away from standard corporate style.<\/p>\n
You can tell Philips does a lot more than sell consumer goods just by looking at the photographs and copies.<\/p>\n
It\u2019s also worth noting that the corporation keeps the page dynamic and up-to-date, with highlights from the fourth quarter included. The majority of business profiles are stagnant and collect dust, whereas Philips refreshes its at least four times every year.<\/p>\n
Blurb, on the other hand, takes the opposite approach to Phillips, emphasizing its successes on its corporate page through minimalist design and white space.<\/p>\n
The self-publishing platform company is a smart SEO move, including links to relevant information throughout the timeline provided, giving you not only the highlights but also the facts (and keeping you on the website) if you want to learn more.<\/p>\n
Do you want your company to stand out from the crowd? Take a page from Heineken\u2019s playbook and engage with your customers beyond your goods \u2014 show them more of your brand\u2019s human side.<\/p>\n
Heineken\u2019s company profile is built around a list of four major factors that distinguish it from the competition \u2014 most notably, its global reach and dedicated, diverse workforce.<\/p>\n
The page goes beyond just a beer for readers, highlighting the brand\u2019s beliefs and providing simple access to a variety of other content, such as the brand\u2019s current stock prices, most recent annual report, and Twitter feed.<\/p>\n
There are times when you should be humble and times when you should pat yourself on the back. Do you have any awards? Positive feedback? Customers\/clients with clout? One of the few areas where it\u2019s acceptable for your brand to talk about these things is in your business profile.<\/p>\n
Rackspace, for example, isn\u2019t shy about proclaiming that it\u2019s \u201crenowned as a leader\u201d and displaying dozens of certifications and other acknowledgments.<\/p>\n
Western Digital took a unique approach to its business page, publishing a brief letter from the CEO about the organization.<\/p>\n
The letter fulfills the same goal as other profiles (telling you what the firm does, who its customers are, and a brief history), but it adds a personal touch by being presented as a personal communication from the company\u2019s leader.<\/p>\n
Consider adding a headshot and handwritten signature, or even a video, to your company profile to take this notion a step further.<\/p>\n
When it comes to video, Why tell people about your company when you can show them?<\/p>\n
In their business description, Atos includes a video that conveys all of the critical information found in a typical company profile in a more engaging and efficient style.<\/p>\n
To be honest, I wish Starbucks had put a little more effort into the visual design of this page, but the content is surely not lacking in innovation.<\/p>\n
Folklore was the area that drew my interest the most. The corporation states that it was named after Moby Dick\u2019s first mate and that its emblem was inspired by a Greek mythology twin-tail siren.<\/p>\n
Maybe your genesis tale isn\u2019t as interesting, but if it is, tell it. In the minds of your audience, these subtleties and eccentricities will make your brand more memorable and well-rounded.<\/p>\n
The majority of large firms have corporate profiles that are simply too long. Lonza, on the other hand, has discovered a method to present a lot of information without being overpowering with its unusual display.<\/p>\n
Are you interested in learning more about the company\u2019s history? There\u2019s a link to that somewhere. What if we only looked at the facts and figures? There\u2019s also a link for it.<\/p>\n
With the examples above, writing a business description shouldn\u2019t be too much of a bother. But we\u2019ll go through some key steps you should follow just to get a hang of it.<\/p>\n
The easiest method to start telling your small business story is with a simple framework.<\/p>\n
You should introduce your company, describe what you do, where you operate (or the markets you serve), and how long you\u2019ve been doing it.<\/p>\n
For example, a simple template could be;<\/p>\n
We\u2019re \u201cCompany Name,\u201d and we\u2019ve been doing \u201cWhat your business does\u201d in \u201cLocation\u201d since \u201cDate.\u201d<\/p>\n
We\u2019re The Coffee Bean, and since 1981, we\u2019ve been roasting and serving organic coffee in Toronto.<\/p><\/blockquote>\n
#2. Tell Us About Your Company\u2019s Values<\/h3>\n
Tell us what you stand for so that people can connect with your company. Do you want to learn more about Fair Trade? Is it possible to achieve social justice? Honesty? Transparency? Organic? Is it sourced locally?<\/p>\n
You\u2019re almost certainly running a business in a competitive market. Adopting and articulating your company philosophy as part of your core business description can help you stand out from the crowd. People love to rally behind a good cause, so offer them a reason to support your company.<\/p>\n
Sample: We believe in purchasing only responsibly grown beans, roasting them in-house, and offering our clients fresh coffee at a reasonable price.<\/p>\n
#3. Describe Your Area of Expertise and the Work You Enjoy Doing<\/h3>\n
People like entrepreneurs who are passionate about their work. Your audience will skim your story for evidence that you care about your company. Tell people about the projects that your firm is passionate about. Alternatively, tell your audience what you want to see in your sector, whether it\u2019s an innovation, a company philosophy in action, or a project.<\/p>\n
#4. Tell a Short, Relatable Anecdote About How You Got Started With Your Company<\/h3>\n
A solid foundational tale will appeal to your readers. Share your \u2018a-ha\u2019 moment (the moment when you decide to start your own business) with the rest of the world! We often start enterprises because we are dissatisfied or sense an opportunity. Allow your customers a taste of your eureka moment. Most of them would most likely relate to you, begin to recognize you as a person, and form a bond with you.<\/p>\n
Formula: I established this company because of (X), and I was confident in it (Y).<\/p>\n
For example, I founded my company because I was sick of drinking bad, pricey coffee and thought there had to be a better way.<\/p>\n
Inform your customers about your company\u2019s future plans.<\/p>\n
#5. Give Us a Sneak Peek Into Your Long-Term Objectives<\/h3>\n
We know who you are and what you believe in; now it\u2019s time to show your customers where you want to go. Incorporate your long-term objectives (or how you see your company evolving) into your business narrative. These elements help to flesh out your story and paint a clearer picture of where your company began and where you want it to go in the future. Your audience will feel more at ease knowing that you\u2019re in it for the long haul, and they\u2019ll be more willing to work with you right now.<\/p>\n
Sample: We\u2019re excited to launch two more locations in Toronto, as well as collaborate with Ontario farmers on a new line of local, organic baked goods.<\/p>\n
#6. Make It Simple for Your Reader to Respond<\/h3>\n
It\u2019s time for your reader to take the last action. After all, you\u2019re attempting to operate a business and want to figure out how to get genuine clients to visit your website. Here\u2019s where you should make things simple for them by asking them to do something.<\/p>\n
Sample: I\u2019d like to personally welcome you to come in and sample one of our freshly brewed coffees.<\/p>\n
Tip: Offer a free consultation if they fill out your form, tell them to call you, or tell them to come in.<\/p>\n
#7. Put It All Together in a Single Clear Story<\/h3>\n
Combine all of your elements into a single paragraph.<\/p>\n
Sample:<\/p>\n
\u201cSince 1981, we\u2019ve been roasting and serving organic coffee in Toronto at the Coffee Bean.\u201d<\/p><\/blockquote>\n
We believe in purchasing only responsibly grown beans, roasting them in-house, and giving our clients fresh coffee at a reasonable price. Also we specialize in working directly with farmers to establish long-term relationships. We recently assisted in the construction of a new coffee estate in Ecuador. We adore coffee, and it shows in every cup we serve. I created this company because I was sick of drinking bad, pricey coffee and thought there has to be a better way. We\u2019re excited to establish two more locations and provide a new line of organic, locally sourced baked goodies. I\u2019d like to personally welcome you to come in and sample one of our freshly brewed coffees.\u201d<\/p><\/blockquote>\n
Make sure to update your website with your updated business description. It\u2019s also a good idea to distribute it to any of your current employees. Your story has the potential to have a startling impact on the culture you create for your current and future employees.<\/p>\n
Keep in mind that your story should adapt and evolve as your business does. Keep it updated with any new developments or achievements.<\/p>\n
Best Practices for Effective Business Descriptions<\/h2>\n
Here are some pointers to help you build a good business description:<\/p>\n
Begin With an Elevator Pitch: <\/strong>Your business description\u2019s opening paragraph should include all of your most important details. It\u2019s good to think of it as an elevator pitch, where you only have a few sentences to describe your company\u2019s major features.<\/p>\n
Only Include High-Level Information in Your Business Description<\/strong>: Some of the information you put in your business description will also appear in other sections of your business plan. Concentrate on giving only a high-level overview of these components, leaving the specifics to another section.<\/p>\n
Communicate Your Enthusiasm<\/strong>: The purpose of a business description is to entice the reader to read the rest of your business plan.<\/a> To do so, make sure the tone of your description accurately reflects your enthusiasm for the organization and its goals.<\/p>\n
Check for Length<\/strong>: Business descriptions should be clear and simple, even if the length varies based on how complicated the business strategy is. Go over your business description again after you\u2019ve finished writing it to remove any redundant or unnecessary information.<\/p>\n
What Does It Mean to Cite Your Sources?<\/h2>\n
All of your observations should be based on credible data, with sources listed in the footnotes. If you\u2019re looking for finance for your business, you\u2019ll need to include these footnotes. Your sources will be requested by the investor to check that your estimates are not based on assumptions. Your objective is to capture their interest and persuade them to invest in the business. Make sure to sketch out the structure of the company description as you write it. Are you a retail business? Is it a manufacturing company? What is the name of the accounting firm? Are you a people person?<\/p>\n
Checking the Business Description for Errors<\/h2>\n
Your business description should always be proofread. This proofreading should be done by someone who was not involved in the creation of the business plan; this gives the description a fresh set of eyes to look for typos and grammatical issues.<\/p>\n
How Do You Write a Business Description?<\/h2>\n
Creating an efficient business description involves the following;<\/p>\n
\n
- Researching the industry and competitions<\/li>\n
- Describing the industry\u2019s present and future state<\/li>\n
- Providing your business\u2019s fundamental information<\/li>\n
- Crafting a problem statement from the industry<\/li>\n
- Identifying your target market<\/li>\n
- Explaining plans for manufacturing, marketing, and distribution.<\/li>\n<\/ol>\n
What Are the Four Types of Businesses?<\/h2>\n
The four types of businesses include sole proprietorship, partnership, corporation, and Limited Liability Company, or LLC<\/strong>.<\/p>\n
What Is Business Description and Structure?<\/h2>\n
While business description talks about the business in its entirety, a business structure refers to a company\u2019s legal structure, which has an impact on the company\u2019s day-to-day activities. While business description talks about the business in its entirety, a business structure refers to a company\u2019s legal structure, which has an impact on the company\u2019s day-to-day activities.<\/p>\n
Where Can I Find a Business Description?<\/h2>\n
Most business plans have a section right after the executive summary that describes the company. The purpose of the business description is to give an overview of the business, including what it does and what makes it different from other businesses in the same field.<\/p>\n
How Do I Describe My Business Page?<\/h2>\n
You want to tell us the name of your company, what it does, where it operates (or what markets it serves), and how long it has been doing that. Formula: We\u2019re \u201cCompany Name,\u201d and since \u201cDate,\u201d we\u2019ve been \u201cWhat your business does\u201d herein \u201cLocation.\u201d<\/p>\n
How Long Is a Business Description?<\/h2>\n
If your plan isn\u2019t too complicated, keep your business description short. Describe the industry in one paragraph, the product in another, and the business and what makes it successful in three or four paragraphs to end the statement.<\/p>\n
How Do You Introduce a Business in 30 Seconds?<\/h2>\n
What you want to do with your 30-second speech<\/p>\n
\n
- Identify yourself.<\/li>\n
- Name your business.<\/li>\n
- Describe what your business does.<\/li>\n
- Talk about how the customer can benefit from its products or services.<\/li>\n
- Give the prospect a reason to take action as soon as possible.<\/li>\n<\/ul>\n
Final Thoughts<\/h2>\n
Even if it feels like excessive work, writing the business description section of your business plan should be enjoyable. This is your chance to talk about your business idea and enlist the help of others (such as lenders and investors). Consider a live pitch before thousands of audiences. Your audience is your investors and, of course, your customers. And both are vital personalities that you need to impress.<\/p>\n
Here are a few more pointers to remember when learning how to construct a business description:<\/p>\n
\n
- Fill in the blanks for the 5 Ws and 1 H.<\/li>\n
- Maintain brevity, simplicity, and readability.<\/li>\n
- Check to see if it\u2019s intriguing.<\/li>\n<\/ul>\n
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- NONPROFIT GRANT WRITING: Training, Workshops, Certification, & All you Need<\/a><\/li>\n<\/ol>\n