Business Plan Company Description The Full Guide

Business Plan Company Description - How to Leave Your Mark

A business plan company description provides you with an opportunity to introduce your company to the reader whilst showcasing key elements such as your long-term vision and mission statement.

The business plan company description forms the backbone of your business plan and lays the foundation for everything that follows. It's where you introduce your business, its legal structure, location, management team, product line, and services, as well as your vision and mission statements.

In this blog post, we will delve into what exactly a company description section entails, its importance, and how you can craft an effective one for your business plan. This understanding will serve as a stepping stone towards not only creating a compelling business plan but also setting a strong foundation for your business.

Table of Contents

Overview of the Business Plan Company Description

The company section of a business plan, often known as the company description or company overview, serves as the introduction to your business. It presents an opportunity to succinctly communicate crucial information about your business to investors, lenders, or any other stakeholders.

Your goal for this sector is to provide a high-level view of your business - who you are, what you do, and where you operate. Think of this section as the "book jacket" of your business plan, offering a sneak peek into what your business is all about and providing the reader with more context.

There are several key points you should include in the business plan company description, which we will now take you through step by step, including some helpful tips.

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Elements of the Business Plan Company Description - An Overview

Let's now delve deeper into the key elements that make up the company section of a business plan. Remember to craft these sections into a succinct final draft. Start with a rough draft and then continually refine and improve as you write the document.

Company Description/Overview

This section will allow you to provide the reader with a basic overview of your company.

This includes the business name, the industry you operate in, and the nature of the business - whether it's a retail store, a manufacturing unit, a tech startup, and so on.  To make this section stand out highlight the market needs of your target customers and how you fulfil them with your products and services.

The goal here is to convince your reader that your business is viable and has growth potential.

In this section, you will outline the legal structure of your business. 

Are you operating as a sole proprietor, in a partnership, as a corporation, or a limited liability company? 

Each structure has different legal and tax implications, so it's important to clarify this. You may also want to include any relevant legal agreements or licenses here.

This is not merely a declaration of your business's legal form; it's also an opportunity to explain why you chose this structure. Are there for example legal or tax advantages for potential investors?

Location

Provide details about the physical location of your business, whether it's a home office, a shared working space, or a dedicated building.

Consider proximity to customers or suppliers, local competition, and the availability of resources. If you are an online business, explain how your digital presence allows you to reach your target market.

Try and outline the benefits of your chosen location, such as working remotely due to your national presence online, which means you don't have to be tied to one physical location.

Management Team

Here, you will introduce your management team and any other key team members. Include each person's name, position, a brief description of their role, and their relevant experience or skills. 

Try to highlight what each team member brings to the business in terms of human resources. Is it a specific skill set or decades of industry experience for example?

Product Line and Services

This is where you describe what you're selling or what services you're offering. 

Be specific about what makes your products or services unique or attractive to your target market. You can also use this section to highlight what makes your products different to your competitors.

You could also discuss any intellectual property rights, research and development activities, or plans for product or service expansion.

Vision and Mission Statements

Your vision statement should outline your company's long-term goals and aspirations. It answers the question, "Where do we aim to be in the future?" 

Your mission statement, on the other hand, should clearly express your company's purpose and your key business values. It answers the question, "Why does our company exist?"

In this section keep them succinct, clear, and compelling.

Business Plan Company Description Use To Introduce The Team

By providing a comprehensive and engaging account of your business, you're building a robust foundation for the rest of your business plan. In the next section, we'll provide tips and best practices to help you enhance the quality of your company section.

Tips and Best Practices for the Business Plan Company Description

Crafting an effective company section in a business plan involves more than just including all the necessary information. It's about presenting this information in a way that engages your reader and communicates the potential success of your business.

Here are some tips and best practices to help you achieve this:

  • Keep it Concise and Clear: Although the company section includes a lot of information, it's essential to keep it as succinct as possible. Avoid fluff and get straight to the point. Use clear, straightforward language and avoid industry jargon where possible.
  • Show, Don't Tell: Instead of merely stating facts about your business, show your readers the value your business brings. For instance, rather than saying your product is innovative, explain how it offers a unique solution to a common problem.
  • Target it to Your Audience: Tailor your company section to the needs and interests of your potential investors or lenders. Highlight the aspects of your business that would be most appealing to them. If you are seeking investment, emphasise your business's growth potential.
  • Be Realistic But Optimistic: While it's important to highlight the positive aspects of your business, avoid exaggeration and stay realistic. Provide a balanced view of your business, addressing potential challenges and how you plan to overcome them.
  • Use Professional Language: Your business plan is a professional document, so maintain a professional tone throughout. Ensure your company section is free from errors by proofreading it thoroughly or having someone else review it.

By incorporating these tips and best practices into your writing process, you can ensure that your company section not only provides all the necessary information but does so in a compelling way.

In the next section, we'll discuss common mistakes to avoid when writing your company section.

Business Plan Company Description An Important Element Of Your Business Plan

Common Mistakes to Avoid in Your Company Description

Writing a business plan company description can be a delicate task, and it's easy to make a few mistakes. To ensure your company section is as strong as possible, be aware of the following common mistakes and take steps to avoid them:

  • Overcomplicating Things: While it's important to include enough detail to give a comprehensive overview of your business, avoid including unnecessary or overly technical details. Remember, the goal is to communicate your business idea clearly and concisely not write about the small intricate details of your business.
  • Being Too Vague or Too Detailed: Striking the right balance between detail and brevity can be tricky. While you want to avoid being too vague, providing excessive details can also be a problem. Your goal should be to provide just enough information to paint a clear picture of your business.
  • Overlooking the Importance of the Management Team: The management team can often be a deciding factor for investors. Don't merely list the names and titles of your team members. Instead, provide a brief overview of their backgrounds, highlighting their relevant experience and skills.
  • Overhyping Your Product or Service: While it's crucial to present your business in a positive light, avoid making exaggerated or unsupported claims. Investors will likely be sceptical of these and they may harm your credibility.
  • Ignoring Your Competition: Even if your business is unique, you likely have some form of competition. Acknowledge this in your company description and briefly explain how your business differentiates itself from competitors.

Avoiding these common mistakes will strengthen your company section and make it more appealing to readers, whether they're potential investors, partners, or employees.

If you would like help on a business plan for a specific industry, please check out our business plan guides homepage.

Our Final Thoughts

Crafting a compelling company section in your business plan is not just about listing out facts about your business. It's about clearly conveying your business's value proposition, highlighting the strength of your management team, and painting a vivid picture of your products or services. 

When done right, it can act as a powerful tool to draw in investors, convince potential partners, and attract talented employees.

The company section is especially important as it forms the backbone of your business plan and sets the stage for the sections that follow.

As you embark on the journey of writing your company section, keep these tips and best practices in mind while avoiding the common mistakes mentioned above. We also have more in-depth guides in our Learning Zone, which can help you craft the best possible business plan.