A business plan is a way to keep tabs on every element of a firm. The goal of writing a plan is to investigate each aspect of a business, exploring their details and requirements. In most cases, the very first thing an entrepreneur should do is write a company description. There are a number of other elements that need to be written. To find out more about those sections, please visit the article "Business Plan Template."
Although there is a lot of freedom to organize a business plan in any way that is preferred, here are some possible sections to consider when writing the company description portion of the plan.
Company Description
This is an overarching statement that briefly explains what the company does and why it does it. Things to remember:
- Should be quite short- 4 or 5 sentences at the most.
- Uses key words that are connected with the company’s philosophy.
- Describes the major challenge that is being undertaken.
- Provides a glimpse into the future of the business.
Operations
The operations or procedures section relates to the way that business will be done. Is this a sell-and-buy firm, a buy-and-sell? Where is it located? Who will be the target market?
- Direct sentences written in the active voice.
- How will cash come into the business?
- What are the expectations of customers? Will they have to come to a store, make a phone call?
Benefit Statement
The most profitable firms have a unique selling point. This is something that really sets them apart from the competition. What is this for the firm in question? What benefit do they provide that other places do not?
- What exactly is being sold?
- How will customers feel when making a purchase?
- Statement should be as strongly branded as possible.
Features & Benefits Chart
Features are the qualities that a firm brings to market. An example might be “A well-lit room.” However, the actual benefit for the consumer is different than the feature. It’s important to understand what the feature represents to the customer. A well-lit room means that it’s easy to see all the merchandise and the environment feels positive. That’s the benefit!
- Try to list all things that have an effect on the customer’s experience.
- Do the features sync up with what is attempting to be accomplished?
- Do the benefits support the operations of the firm?
The Company Philosophy
The philosophy of the company will have been touched upon in the description. However, now is the time to nail down core values, rules regarding how business will be done, and the mindsets of the employees.
- Include a list of words that consumers would associate with the business.
- Make it as clearly worded as possible, so there is no room for misinterpretation.
Mission Statement
This is a single sentence that sums up everything the company is doing and why.
- Should be concise.
- Should be inspirational.
- Should hit upon elements of operations, philosophy and growth.
The company description will likely be one of the shorter sections of a business plan. However, it is likely to be the section that has the most thought put into it and undergoes the most changes before it is thought to be ready. When writing it, be sure to use all available techniques to keep creativity high. What is being pursued? Why? How? These are the important questions to answer in the company description.
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