Virtual Business Plan
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.
covering the following in your company description section:
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
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.
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.
This section gives your reader an idea of where your company is
What are looking to accomplish over the next 1, 3, 5 and 10
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
Company Description: Mistakes to Avoid
The company description should
clearly explain your company and the product or services you offer.
section could be considered the who, what, why, where, when and how of
your company, with the focus on significant highlights of your business.
Here are some of the most common mistakes that we find in the company
- Including far too much detailed information about
- Providing information that an investor would
consider your "personal opinion"
- Appearing as though you have no business history or
- Leaving out important business and legal
- Writing the section in an unorganized or confusing
Product & Service Description: Business Plan Basics
The product/service section is
one of the most important parts of your business plan.
It's your chance to
clearly explain you products/services, identify their features and
benefits, and discuss what needs or problems they address in the market.
If you are selling a product, your reader will want to
know what it is, what it does, and its features and benefits.
including pictures if they would help your reader get a better
understanding of your product.
Discuss its size, shape, color, cost,
design, quality, capabilities, technological life-span and patent
You may also wish to explain how it is produced, the materials
required, and the type of labor needed.
If you offer your customers a service, explain what that
service(s) are, how they work, and what need they address in the
Where will you operate? What makes your service different?
What materials or equipment is needed? What are your days and hours of
Explain the steps in your service process and the benefits you
offer your clients.
Write this section with enough information to satisfy
an outsider's need to understand your service without boring them with
Product & Service Description: Mistakes to Avoid
The following are the some of
the most common mistakes we find in the product and service description
- Failing to identify the benefits of the product or
service (focusing instead on the features)
- Describing the product/service in language that is
too technical, with too many many industry specific words or phrases
- Omitting the specific problem the product/service
addresses and how that problem is solved
- Assuming an improved product/service will "sell
- Describing the product/service in terms that are
- Failing to include a third-party evaluation or
analysis of your product
- Underestimating the importance of legally
protecting your product/service
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