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How to Write a Company Description for a Business Plan

Nobody does what you do better than you, but … what is it that you do again? You might have trouble describing your business in one sentence or find yourself at a loss for words when writing a company description. Knowing how to write a company description for a business plan helps you communicate with lenders, investors, employees, and potential customers.

How to write a company description for a business plan

You put a lot of thought into your original business concept. Now you need to know how to succinctly describe your business.

Where better to describe your business than in the company description business plan?

What is a business plan?

A company description is just one part of your small business plan . The business plan outlines your goals and how to achieve them.

According to the Small Business Administration , a successful business plan should include the following:

• Executive summary
• Company description (Bingo)
• Small business market analysis
• Organization and management details
• Service or product information
• Marketing and sales overview
• Funding request
• Financial projections

Another thing to note about business plans is that you can’t write one and be done. Your business is always changing. And that means your business plan is always changing, too. Be sure to update it regularly.

What is a business description?

A company description provides an overview of key aspects of your business, like what you do and what makes your business unique. Anyone reading your business description should have no problem understanding the scope of your business.

Lenders and investors should see how your business has a place in the market, as well as its benefits to future customers.

Your business’s mission statement is the part of your company description that you want the public to see. And, you should include your vision statement, too.

Regularly update your company description as your business expands or changes.

Writing your company description

You need to know how to pitch to investors and lenders to captivate their interest. Your description should answer who, what, where, when, why, and how right off the bat.

So, do you know how to write a business description? We’ll walk you through the 5 W’s (and 1 H) to consider when drafting your first copy.

Who are you? Who is your business? Verify that the name of your business is clear in the business description section of your business plan. And, include your name (and the names of any other owners) because lenders and investors want to know the entrepreneur behind the business.

Who is your target customer? Who are you selling to? When describing your business, make sure you know who you appeal to. If you don’t know your target customer, there’s a chance that nobody will be interested in your business.

What is your product or service? If lenders and investors can’t understand what you’re selling or how it’s significant, they may pass on your concept. Be clear, narrow, and focused when telling lenders and investors about your business.

What are your goals for your business? Set realistic short-term and long-term goals. For example, if you plan on selling $20,000 worth of products by the end of the second month, include the goal in your description.

Where is your business located? If you are currently operating your business, list the address. Likewise, make sure you state where you want your business to be if you are still looking for office space.

When will you implement your business plan and see results? Include when you want to open your business (or when you opened it).

When do you plan on achieving your goals? Also, talk about the timeline for your main goals (both short-term and long-term).

When do you think you’ll leave your business? Don’t forget to discuss your exit strategy . Whether you plan on retiring in 20 years, selling your company in 15 years, or closing it down in 10 years, be clear about when you plan on parting ways.

Why would potential customers want to buy from you? Explain why you are different from the competition. This is where you can describe your business’s originality. Lenders and investors want to know why consumers would want to make a purchase at your small business instead of a competitor’s.

Why are you in business? Also make sure you include your business’s mission statement . A mission statement defines why you’re in business and what your goals are.

How are you going to structure your business? Which business structure will you form: sole proprietorship, LLC, partnership, or corporation? Explain your structure decision, too. Mention any small business advisor (e.g., business attorney) you work with to help with registration requirements, regulations, and liabilities.

How are you going to achieve the goals you set for your business? Are you going to hire employees to help you, or will you handle all responsibilities on your own? Talk about what steps you’ll take to reach the goals you outline.

How do you picture your company in the future? Include your business’s vision statement in your company description. A vision statement is an internal description that states what you want your business to look like in the future.

Business description example

Still unsure? Take a look at this business description example for more information:

Ann’s Office Hut delivers office supplies to small businesses in Boston, Massachusetts. The business is structured as a sole proprietorship, operating under entrepreneur Ann Smith. Ann’s Office Hut is located in Boston, Massachusetts and will begin operations in February. Ann’s Office Hut recognizes the busy lives of small business owners and wants to bring essential items like printers, cash registers, paper, ink, and envelopes to their doorsteps. Ann’s Office Hut will conveniently provide office supplies to small business owners who are short on time. Other office supply stores cannot match the convenience Ann’s Office Hut will give.

The business hopes to have gross sales of $30,000 by the end of one year and $95,000 by the end of five years. To achieve this goal, Ann’s Office Hut plans on offering referral credit.

Company description business plan: Final tips

Writing the business description portion of your business plan should be fun … even though it may feel more like a chore. But, this is your opportunity to talk about your business idea and get other people (i.e., lenders and investors) on board.

Here are a few final tips to keep in mind when learning how to write a company description:

• Answer the 5 W’s and 1 H
• Keep it short, simple, and easy to read
• Proofread, proofread, proofread
• Determine whether it’s interesting

This article has been updated from its original publication date of December 9, 2016. 

This is not intended as legal advice; for more information, please click here.

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Business Description

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In the dynamic world of business, a well-crafted business description is essential for effectively communicating the nature and purpose of your company. This article provides a comprehensive guide on drafting a business description, with over 23 examples in various formats such as Google Docs, Word, Outlook, Apple Pages, and PDF. We will explore the step-by-step process of creating a compelling business description, answer frequently asked questions, and provide links to related articles for further reading.

What is a Business Description?

A business description is a concise overview that provides key information about a company, including its mission, products or services, target market, and competitive advantage. It serves as an introduction to potential investors, partners, and customers, giving them a clear understanding of what the business is all about.

Examples of Business Description

A well-crafted business description can effectively communicate the essence of your company to potential customers, investors, and partners. Here are a few examples across different industries:

1. Technology Company

Tech Innovators Inc. Tech Innovators Inc. is a leading technology company based in San Francisco, specializing in innovative software solutions for businesses of all sizes. Our mission is to empower companies with cutting-edge technology that enhances efficiency and drives growth. We aim to be the global leader in business technology solutions. We offer a range of products including cloud-based project management tools, AI-powered analytics software, and custom application development services. Our unique selling proposition lies in our ability to provide tailored solutions that meet the specific needs of each client, ensuring maximum efficiency and productivity. Our target market includes small to medium-sized enterprises (SMEs) in various industries, looking to leverage technology to improve their operations. We address the need for efficient project management, data analysis, and customized software solutions that streamline business processes. Our competitive advantage comes from our tailored solutions and a dedicated team of experienced professionals. We are positioned as a top provider in the tech industry, known for our innovation and customer-centric approach. Our management team comprises experienced professionals from top tech companies. Our CEO, Jane Doe, has over 20 years of experience in the tech industry and has led the company to significant growth since its inception. Financially, we are robust, with annual revenue growth of 20% and clear plans for future expansion.

2. E-commerce Retailer

Fashion Forward Fashion Forward is a premier online retailer based in New York City, offering a curated selection of contemporary women’s fashion. Our mission is to empower women through style, providing access to the latest trends and timeless pieces. Our vision is to be the go-to destination for fashion-forward women around the world. We offer a wide range of products including dresses, tops, bottoms, accessories, and shoes from emerging and established designers. Our unique selling proposition is our commitment to quality, exclusivity, and customer satisfaction, ensuring a unique shopping experience. Our target market is fashion-conscious women aged 18-35 who value quality, exclusivity, and the latest trends. We cater to their need for stylish, high-quality clothing and accessories that make a statement. Our competitive advantage lies in our exclusive partnerships with designers and our dedication to personalized customer service. We are recognized as a leader in the online fashion retail space, known for our trendsetting collections and exceptional customer experience. Our management team consists of industry veterans with extensive experience in fashion retail and e-commerce. Our founder, Emily Smith, has over 15 years of experience in the fashion industry and has successfully built Fashion Forward into a thriving business. Our financial health is strong, with consistent growth in sales and a loyal customer base.

3. Restaurant

Gourmet Garden Gourmet Garden is a family-owned restaurant located in the heart of Chicago, specializing in farm-to-table dining. Our mission is to provide a unique culinary experience by offering fresh, locally-sourced dishes that celebrate the flavors of the season. Our vision is to be a leader in sustainable and innovative dining. We offer a diverse menu that changes seasonally, featuring dishes made from the freshest ingredients sourced from local farms. Our unique selling proposition is our commitment to sustainability and our creative, seasonal menu that offers something for everyone. Our target market includes food enthusiasts, health-conscious diners, and families who appreciate high-quality, locally-sourced meals. We meet their needs by providing a dining experience that combines delicious food with a commitment to sustainability. Our competitive advantage is our strong relationships with local farmers and our dedication to sustainability. We are known for our exceptional food, welcoming atmosphere, and innovative approach to dining. Our management team includes experienced restaurateurs and chefs dedicated to providing an outstanding dining experience. Our head chef, John Doe, has over 20 years of culinary experience and a passion for farm-to-table cuisine. Financially, we have seen steady growth, with a loyal customer base and positive reviews.

4. Healthcare Provider

Healthy Horizons Clinic Healthy Horizons Clinic is a state-of-the-art medical facility located in Los Angeles, offering comprehensive healthcare services to families and individuals. Our mission is to provide high-quality, compassionate healthcare that meets the diverse needs of our community. Our vision is to be the preferred healthcare provider in the region. We offer a wide range of services including general practice, pediatrics, women’s health, and mental health services. Our unique selling proposition is our holistic approach to healthcare, combining advanced medical treatments with personalized care. Our target market includes families, children, and individuals seeking comprehensive and compassionate healthcare services. We address their needs by offering a full spectrum of medical services in one convenient location. Our competitive advantage lies in our team of highly skilled healthcare professionals and our commitment to patient-centered care. We are recognized for our excellent patient outcomes, advanced medical technology, and compassionate approach to healthcare. Our management team includes experienced healthcare administrators and medical professionals dedicated to providing the highest standard of care. Our medical director, Dr. Jane Smith, has over 25 years of experience in family medicine and leads a team of dedicated healthcare providers. Financially, we are stable with a growing patient base and positive community impact.

Examples of Business Description for Food

Crafting a compelling business description for a food-related business requires highlighting your unique offerings, the quality of your products, and your commitment to customer satisfaction. Here’s an example:

Heavenly Bites Bakery Heavenly Bites Bakery is a family-owned bakery located in the heart of San Francisco, dedicated to creating delicious, freshly baked goods using the finest ingredients. Our mission is to bring joy and satisfaction to our customers with every bite, offering a wide range of bakery products that cater to various tastes and dietary preferences. Our vision is to be the go-to bakery in San Francisco, known for our exceptional quality and customer service. We offer an extensive menu that includes artisan breads, pastries, cakes, cookies, and gluten-free options. Our unique selling proposition is our commitment to using only organic, locally-sourced ingredients and our dedication to traditional baking methods. Each product is handcrafted with love and care, ensuring a homemade taste that sets us apart from mass-produced bakery goods. Our target market includes food enthusiasts, families, and individuals who appreciate high-quality, fresh bakery products. We cater to their needs by providing a welcoming atmosphere and a diverse menu that includes options for various dietary requirements, including gluten-free and vegan choices. Our competitive advantage lies in our use of organic ingredients, our commitment to sustainability, and our exceptional customer service. We are known for our creative, beautifully decorated cakes and our ability to customize orders to meet the specific needs of our customers. Our management team comprises experienced bakers and passionate food lovers. Our head baker, Mary Johnson, has over 15 years of experience in the culinary arts and is renowned for her innovative recipes and artistic cake designs. Financially, we have seen steady growth, with a loyal customer base and a strong presence in the local community.

Example of Business Description for Clothing

Creating a compelling business description for a clothing company involves emphasizing your unique style, quality, and commitment to customer satisfaction. Here’s an example:

Chic Couture Chic Couture is a trendy clothing boutique based in New York City, specializing in contemporary women’s fashion. Our mission is to empower women through stylish, high-quality clothing that reflects their individuality and confidence. Our vision is to become a leading fashion destination for women who seek unique and sophisticated apparel. We offer a wide range of products including dresses, tops, bottoms, outerwear, and accessories. Our unique selling proposition is our commitment to curating exclusive collections that blend modern trends with timeless elegance. Each piece is carefully selected to ensure it meets our high standards of quality and style. Our target market includes fashion-forward women aged 18-35 who appreciate the latest trends and high-quality craftsmanship. We cater to their needs by offering an ever-evolving selection of stylish clothing that allows them to express their personal style. Our competitive advantage lies in our exclusive partnerships with emerging designers and our dedication to personalized customer service. We are recognized for our curated collections, exceptional quality, and the ability to offer unique pieces that are not available in mass-market stores. Our management team consists of experienced fashion industry professionals who are passionate about style and customer satisfaction. Our founder, Emma Blake, has over 20 years of experience in the fashion industry and has a keen eye for identifying the latest trends. Financially, Chic Couture has seen consistent growth, driven by a loyal customer base and strong online presence.

Example of Business Description for Coffee Shop

Crafting an engaging business description for a coffee shop involves highlighting the unique qualities of your coffee, the ambiance of your shop, and your commitment to customer satisfaction. Here’s an example:

Brewed Bliss Café Brewed Bliss Café is a cozy coffee shop located in the vibrant neighborhood of Brooklyn, New York. Our mission is to create a welcoming community space where coffee lovers can enjoy expertly brewed beverages and delicious, locally-sourced treats. Our vision is to become the neighborhood’s favorite spot for coffee, conversation, and relaxation. We offer a wide range of coffee beverages, including espresso, cappuccino, latte, cold brew, and specialty seasonal drinks. In addition, we serve a variety of pastries, sandwiches, and snacks made from organic, locally-sourced ingredients. Our unique selling proposition is our commitment to quality and sustainability, reflected in our use of fair-trade coffee beans and eco-friendly practices. Our target market includes local residents, students, professionals, and tourists who appreciate high-quality coffee and a warm, inviting atmosphere. We cater to their needs by providing free Wi-Fi, comfortable seating, and a selection of books and board games to enjoy while they sip their coffee. Our competitive advantage lies in our dedication to exceptional customer service and creating a unique, welcoming ambiance. We are known for our barista expertise, friendly staff, and the perfect blend of coffee and community. Our management team comprises experienced coffee enthusiasts and hospitality professionals. Our head barista, Alex Rodriguez, has over 10 years of experience in the coffee industry and is passionate about crafting the perfect cup of coffee. Financially, Brewed Bliss Café has experienced steady growth, supported by a loyal customer base and positive word-of-mouth.

Example of Business Description for Bakery

A compelling business description for a bakery should highlight the quality of your baked goods, the unique aspects of your bakery, and your commitment to customer satisfaction. Here’s an example:

Heavenly Delights Bakery Heavenly Delights Bakery is a family-owned bakery located in the heart of Chicago, dedicated to creating mouth-watering, freshly baked goods using the finest ingredients. Our mission is to bring joy to our customers with every bite, offering a wide range of artisanal baked products that cater to various tastes and dietary preferences. Our vision is to become the most beloved bakery in Chicago, known for our exceptional quality and friendly service. We offer an extensive menu that includes artisan breads, pastries, cakes, cookies, and gluten-free options. Our unique selling proposition is our commitment to using only organic, locally-sourced ingredients and our dedication to traditional baking methods. Each product is handcrafted with love and care, ensuring a homemade taste that sets us apart from mass-produced bakery goods. Our target market includes food enthusiasts, families, and individuals who appreciate high-quality, fresh bakery products. We cater to their needs by providing a welcoming atmosphere and a diverse menu that includes options for various dietary requirements, including gluten-free and vegan choices. Our competitive advantage lies in our use of organic ingredients, our commitment to sustainability, and our exceptional customer service. We are known for our creative, beautifully decorated cakes and our ability to customize orders to meet the specific needs of our customers. Our management team comprises experienced bakers and passionate food lovers. Our head baker, Mary Johnson, has over 15 years of experience in the culinary arts and is renowned for her innovative recipes and artistic cake designs. Financially, we have seen steady growth, with a loyal customer base and a strong presence in the local community.

Example of Business Description for Restaurant

Creating a compelling business description for a restaurant involves highlighting the unique aspects of your cuisine, ambiance, and commitment to customer satisfaction. Here’s an example:

Savory Haven Savory Haven is a gourmet restaurant located in the heart of downtown Los Angeles, dedicated to providing an exceptional dining experience through innovative cuisine and impeccable service. Our mission is to delight our guests with a fusion of flavors from around the world, prepared with the freshest, locally-sourced ingredients. Our vision is to be recognized as a culinary destination for food enthusiasts seeking a memorable dining experience. We offer a diverse menu that features a blend of international and contemporary dishes, including signature entrees, seasonal specials, and exquisite desserts. Our unique selling proposition is our commitment to culinary excellence and creativity, as well as our dedication to sustainability. We partner with local farmers and suppliers to ensure that our ingredients are of the highest quality and responsibly sourced. Our target market includes food enthusiasts, couples seeking a romantic dining experience, business professionals, and tourists looking for a remarkable meal. We cater to their needs by providing an elegant and inviting atmosphere, perfect for any occasion, whether it’s a casual lunch, a business meeting, or a special celebration. Our competitive advantage lies in our innovative menu, exceptional service, and luxurious ambiance. We are known for our chef’s signature dishes, attention to detail, and the ability to provide a personalized dining experience. Our wine list features a curated selection of fine wines from around the world, enhancing the dining experience. Our management team comprises experienced restaurateurs and culinary experts. Our executive chef, John Williams, has over 20 years of experience in the culinary industry and is renowned for his creative approach to international cuisine. Financially, Savory Haven has experienced steady growth, supported by a loyal customer base and rave reviews from food critics.

Example of Business Description for Jewelry

Creating a compelling business description for a jewelry business involves highlighting the quality of your products, the uniqueness of your designs, and your commitment to customer satisfaction. Here’s an example:

Eternal Elegance Jewelry Eternal Elegance Jewelry is a luxury jewelry boutique located in the heart of Manhattan, New York City, dedicated to crafting exquisite, timeless pieces that capture the essence of elegance and sophistication. Our mission is to provide our customers with high-quality, unique jewelry that celebrates life’s most precious moments. Our vision is to be the premier destination for discerning clients seeking extraordinary jewelry and exceptional service. We offer an extensive collection of jewelry, including engagement rings, wedding bands, necklaces, bracelets, and earrings. Our unique selling proposition is our commitment to craftsmanship and design excellence. Each piece is meticulously handcrafted by our skilled artisans using the finest materials, including ethically sourced diamonds and gemstones, and precious metals. Our target market includes individuals seeking luxury jewelry for special occasions, such as engagements, weddings, anniversaries, and other significant life events. We also cater to collectors and fashion-conscious clients who appreciate the artistry and quality of fine jewelry. Our competitive advantage lies in our exclusive designs, personalized service, and ethical sourcing practices. We are known for our bespoke jewelry services, allowing customers to create custom pieces that reflect their personal style and story. Our commitment to ethical sourcing ensures that our diamonds and gemstones are conflict-free and responsibly obtained. Our management team comprises experienced jewelry designers and industry professionals. Our founder and head designer, Sarah Thompson, has over 15 years of experience in the jewelry industry and is renowned for her innovative and timeless designs. Financially, Eternal Elegance Jewelry has seen consistent growth, supported by a loyal customer base and strong word-of-mouth recommendations.

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8. Business Product Description

Importance of Business Description

A well-crafted business description is vital for any organization. It provides a clear and concise overview of the business, its objective , and its operational methods. Here are the key reasons why a business description is important:

1. Clarity and Focus

A business description helps define the mission and vision of the company. It articulates what the business does, its target audience, and its unique selling propositions. This clarity helps in maintaining a focused approach towards achieving business goals.

2. Attracting Investors

Investors need to understand the essence of a business before committing their resources. A comprehensive business description outlines the market needs the business addresses, its operational strategies, and its growth potential, making it easier to attract and convince potential investors.

3. Guiding Strategic Decisions

A detailed business description acts as a reference point for strategic decision-making. It provides insights into the company’s strengths, weaknesses, opportunities, and threats, guiding management in making informed decisions that align with the company’s core objectives.

4. Marketing and Branding

An effective business description enhances marketing and branding efforts. It communicates the company’s value proposition, helping to create a strong brand identity. This, in turn, attracts customers and differentiates the business from competitors.

5. Building Credibility

A well-written business description establishes credibility with stakeholders, including customers, employees, and partners. It showcases the business’s expertise, its commitment to quality, and its market position, fostering trust and confidence.

6. Legal and Regulatory Compliance

For legal and regulatory purposes, a business description is often required. It ensures that the business complies with industry standards and governmental regulations, providing necessary documentation for licensing and other legal formalities.

7. Employee Alignment and Engagement

A clear business description helps in aligning employees with the company’s mission and vision. It serves as a guide for the company culture, values, and expected behaviors, fostering a sense of purpose and engagement among the workforce.

8. Operational Efficiency

By detailing the business processes, products, and services, a business description helps streamline operations. It provides a blueprint for the business model, ensuring that all activities are aligned towards achieving the company’s goals efficiently.

Components of an Effective Business Description

An effective business description provides a comprehensive overview of a business, its operations, and its objectives. Here are the key components that make a business description effective:

1. Company Overview

• Business Name : Clearly state the official name of the business.
• Location : Provide the physical address and locations served.
• Nature of Business : Explain what the business does in simple terms.

2. Mission Statement

• Purpose : Describe the core purpose of the business.
• Vision : Outline the long-term goals and aspirations.
• Values : Highlight the principles and ethics guiding the business.

3. Products and Services

• Offerings : List the main products and services provided.
• Features and Benefits : Explain the key features and benefits of each offering.
• Unique Selling Proposition (USP) : Describe what makes the products/services unique.

4. Market Analysis

• Target Market : Identify the primary customers and market segments.
• Customer Needs : Explain the needs and problems the business addresses.
• Competitive Landscape : Provide an overview of main competitors and market position.

5. Business Model

• Revenue Streams : Describe how the business generates income.
• Pricing Strategy : Outline the pricing models used for products/services.
• Sales Channels : Mention the channels through which products/services are sold (e.g., online, retail).

6. Operational Plan

• Processes : Explain the key operational processes and workflows.
• Suppliers and Partners : Identify key suppliers and business partners.
• Technology and Equipment : Describe any significant technology or equipment used.

7. Management Team

• Key Personnel : Provide information about the leadership team and their roles.
• Experience and Expertise : Highlight the qualifications and experience of key team members.
• Organizational Structure : Explain the hierarchy and structure of the organization.

8. Financial Projections

• Income Statements : Include projected income statements showing expected revenue and expenses.
• Cash Flow Statements : Provide cash flow projections to show liquidity.
• Balance Sheets : Include projected balance sheets for financial health assessment.

9. SWOT Analysis

• Strengths : Identify internal strengths of the business.
• Weaknesses : Highlight internal weaknesses or areas for improvement.
• Opportunities : Describe external opportunities for growth and expansion.
• Threats : Outline potential external threats and risks.

10. Legal Structure and Compliance

• Business Structure : Specify the legal structure (e.g., LLC, corporation, sole proprietorship).
• Licenses and Permits : List necessary licenses and permits for operation.
• Regulatory Compliance : Ensure all regulatory requirements are met.

Common Mistakes to Avoid in Business Description

Creating an effective business description is crucial for communicating your company’s purpose and value. Avoiding common mistakes can ensure your description is clear, comprehensive, and compelling. Here are six common mistakes to avoid:

1. Lack of Clarity and Specificity

• Avoid Vague Language : Use clear and precise language to explain what your business does. Avoid using terms that are too broad or ambiguous.
• Skip the Jargon : Don’t use overly technical terms that might confuse readers. Instead, use simple language that anyone can understand.

2. Incomplete Information

• Include All Key Components : Make sure to cover all essential elements, such as your mission statement, products or services, market analysis, and financial projections.
• Provide Enough Detail : Offer enough information to give a complete picture of your business, but avoid overwhelming readers with too much detail.

3. Neglecting the Audience

• Know Your Audience : Tailor your business description to the needs and interests of your target audience, whether they are investors, customers, or partners.
• Highlight the Benefits : Focus on how your business meets the needs of your audience and the benefits they will gain from your products or services.

4. Lack of Differentiation

• Avoid Generic Statements : Don’t use generic statements that could apply to any business. Be specific about what makes your business unique.
• Define Your Unique Selling Proposition (USP) : Clearly explain what sets your business apart from competitors and why customers should choose you.

5. Ignoring Market and Competitive Analysis

• Include a Market Analysis : Provide an overview of your target market and customer needs. Show that you understand the market you are entering.
• Address Competitors : Mention your main competitors and explain how your business stands out from them.

6. Unrealistic Financial Projections

• Be Realistic : Provide financial projections that are based on credible data and realistic assumptions.
• Support Your Forecasts : Ensure your financial projections are backed by evidence, such as market research and historical data.

Tips for Writing a Compelling Business Description

A compelling business description can effectively communicate your business’s purpose, values, and uniqueness to potential customers, investors, and partners. Here are some essential tips for writing a captivating business description:

1. Be Clear and Concise

• Use Simple Language : Avoid jargon and overly technical terms. Ensure that anyone reading your description can easily understand what your business does.
• Keep It Short : Aim for brevity while covering all important points. A concise description is more likely to keep the reader’s attention.

2. Highlight Your Unique Selling Proposition (USP)

• Differentiate Your Business : Clearly state what sets your business apart from competitors. Focus on unique features, services, or aspects that make your business special.
• Focus on Benefits : Emphasize the benefits customers will receive by choosing your business over others.

3. Include Essential Information

• Business Name and Location : Start with the name of your business and its physical or online location.
• Products and Services : Provide a brief overview of what you offer, including key products or services.
• Mission and Vision : Articulate your business’s mission (what you aim to achieve) and vision (long-term goals).

4. Know Your Audience

• Tailor to Your Audience : Understand who will be reading your business description and tailor it to their interests and needs. Whether it’s potential customers, investors, or partners, make sure your description speaks directly to them.
• Address Their Needs : Highlight how your business solves specific problems or meets the needs of your target audience.

5. Provide a Market Context

• Market Overview : Briefly describe the market you operate in and your position within it.
• Competitive Edge : Explain why your business is well-suited to succeed in this market, mentioning any competitive advantages you have.

6. Use an Engaging Tone

• Write with Enthusiasm : Show passion and enthusiasm for what you do. An engaging tone can make your business description more appealing.
• Be Authentic : Authenticity helps build trust. Write in a way that genuinely reflects your business’s personality and values.

7. Include Relevant Keywords

• SEO-Friendly : Incorporate relevant keywords that potential customers might use to search for businesses like yours. This can help improve your visibility online.
• Natural Integration : Ensure that keywords fit naturally within the text and do not disrupt the flow of your description.

8. Update Regularly

• Keep It Current : Regularly review and update your business description to reflect any changes in your business, market conditions, or new offerings.
• Stay Relevant : Ensure that your description remains relevant and accurate as your business evolves.

How to write a good Business Description?

Writing a good business description involves clearly communicating your business’s purpose, value, and unique qualities. Here are six steps to help you craft a compelling business description:

1. Start with Basic Information

• Business Name and Location : Begin with your business name and where it is located.
• Nature of Business : Clearly state what your business does in a simple and direct manner.

2. Define Your Mission and Vision

• Mission Statement : Describe your business’s core purpose and primary objectives.
• Vision Statement : Outline your long-term goals and what you aim to achieve in the future.

3. Describe Your Products or Services

• Key Offerings : Provide a concise overview of your main products or services.
• Unique Features and Benefits : Highlight what makes your offerings unique and the benefits they provide to customers.

4. Identify Your Target Market

• Customer Segments : Describe the main customer groups your business serves.
• Market Needs : Explain the specific needs or problems your business addresses for these customers.

5. Highlight Your Competitive Advantage

• Unique Selling Proposition (USP) : Clearly state what sets your business apart from competitors.
• Market Position and Competitive Edge : Provide context on your business’s position within the market and why it stands out.

6. Introduce Your Management Team and Financial Highlights

• Key Personnel : Include brief profiles of your key team members, highlighting their experience and roles.
• Basic Financials and Growth Projections : Provide a snapshot of your financial health, such as revenue figures and future growth projections.

Why is a business description important?

A business description provides a clear overview of what your company does, helping attract customers, investors, and partners by conveying your value proposition and unique qualities.

What should a business description include?

It should include your business name, location, mission, vision, products/services, target market, competitive advantage, management team, and financial highlights.

How long should a business description be?

A business description should be concise, typically ranging from one to two paragraphs, but can be longer if needed to cover all essential aspects.

Who is the target audience for a business description?

The target audience includes potential customers, investors, partners, and stakeholders interested in understanding your business’s purpose and offerings.

How often should a business description be updated?

It should be reviewed and updated regularly, at least annually, or whenever significant changes occur in your business operations, offerings, or market conditions.

What makes a business description compelling?

Clear, concise language, a strong value proposition, unique selling points, and an engaging tone make a business description compelling and effective.

Can a business description improve SEO?

Yes, including relevant keywords and phrases naturally within your business description can help improve your online visibility and search engine ranking.

How do you highlight a competitive advantage in a business description?

Clearly state what sets your business apart from competitors, such as unique products, superior customer service, or innovative processes.

What common mistakes should be avoided in a business description?

Avoid vague language, excessive jargon, incomplete information, ignoring the target audience, and unrealistic claims in your business description.

How detailed should the financial highlights be in a business description?

Provide a brief snapshot of your financial health, such as revenue figures, growth rates, or funding received, to give a sense of stability and potential.

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How to write a company description for a business plan

Table of Contents

What is a company description?

What to include in your company description , where , company description example, tips for getting your company description right , stay on top of your new business finances with countingup.

A business plan is essential to setting your business up for success and determining what you want it to look like. One major part of that business plan is the company description. But if you’re unsure how to write a company description for a business plan, we can help.  

This guide will cover how to write a company description for a business plan, including: 

• What a company description is 
• What to include in your company description (with example)
• Tips for getting your company description right

The company description is part of your business plan outlining what your business does and why. It touches on your market and products or services. But it also explains what differentiates you from similar companies.

On top of this, it outlines your company’s mission and vision. Your mission statement specifies your business’s values, ethics, goals, and overall culture. Meanwhile, your vision statement defines where you want your business to go in the future. 

Your business plan will guide you as you start your business, but it’s also essential to gaining external funding. So, the stronger and clearer your company description, the more prepared you’ll look. It shows that you have a detailed understanding of what you do and how you’ll earn money. 

Knowing how to write a company description for a business plan requires some key elements, which we’ll outline below. We’ll also give a brief company description example.  

Start by outlining who you are, including the owner and business name. On top of this, include your business’s market and target audience . You can gain this important knowledge through market research , which will help you understand demand, competition, and your customer base. 

You’ll also need to explain where you’ll run your business. For example, you may explain where you’ll open a shop and why that location will be beneficial. If you plan to run the business from home, discuss how this will work. 

Next, outline the products or services, what problems they’ll solve, and the demand of that market. Aside from what you’ll sell, discuss your short, medium, and long term goals . Clear goals show how you see your business growing over time. Be sure to make these goals realistic and achievable, with ways to measure their success. 

Also, provide an estimated opening date for your business. Then, create a timeline for when you’ll reach profitability . In addition to this, discuss the timeframe for your goals. You may also need to touch upon an exit strategy, such as when you plan to retire or potentially sell. 

Your company description should also clearly describe why you want to start this business. What gave you this idea, and what is your main motivation? Why should customers buy from you? What will you be able to offer them that other businesses can’t? 

Finally, summarise how you’ll operate your business and achieve your goals. How will you structure your business ? This section is crucial for detailing your operations and how you’ll solve potential challenges. So, try to be specific here to show you’ll make your business happen. 

Molly’s Muffins, founded by classically trained baker Molly Smith, aims to redefine the baking market by creating delicious gluten-free and healthy muffins. The shop will cater to a gluten-free audience and target a younger to middle-aged health-conscious demographic. 

Molly’s Muffins will sell in a shop with a fitted kitchen in the higher-income Marchmont neighbourhood of Edinburgh city centre, United Kingdom. The business will serve a variety of gluten-free muffins baked daily in the shop, low in fats and sugars. 

In the short term, Molly Muffin’s aims to develop a loyal customer base in the area and beyond through social media marketing, paid advertising and a rewards program. The medium-term goals of the business include developing an online shop and catering service. In the long term, the business plans to open further locations. 

Molly’s Muffins will register as a limited company to prepare for future growth. With a Bachelors in Bakery and Patisserie science and five years of experience working in and managing a bakery, Molly Smith is prepared to turn her muffin-making passion into a profitable business. 

Molly’s Muffins will open its doors in April of 2022, with a timeline of ten months to reach profitability. The business aims to reach short term goals in three months, medium-term goals in a year, and long term goals in five years. 

Mission statement : Molly’s Muffins mission is to normalise and improve the reputation of gluten-free and healthy food products by making them delicious for all. It prioritises kindness, equality, and a healthy lifestyle.

Now that you know how to write a company description for a business plan, make it clear, detailed, and brief. If your plan is vague, it will be difficult to convince investors of. But, a description with too much detail will be difficult to get through. A clear and grammatically correct description will look more professional.

After writing your company description, be sure to check and update it regularly as it needs to  change with your growing business.

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How to Write a Company Overview for a Business Plan + Examples

Written by Dave Lavinsky

Found after the Executive Summary, the Company Overview is a key section of the traditional business plan format offering a brief description of what your business does, its purpose, and its accomplishments to date. It’s more than just an introduction, it’s the foundation that ensures stakeholders, whether financiers, collaborators, or potential backers, understand your company’s intent and ambitions.

Let’s explore how to create an impactful company overview that supports your overall business plan.

Step-by-Step Guide for Writing the Company Overview Section

For each step below, write just a few sentences that clearly communicate the essential details while keeping the content concise and impactful.

1. Begin Writing with Your Company’s Mission Statement

• Articulate the company’s purpose, capturing its raison d’être in a straightforward yet engaging manner.
• Highlight what your venture strives to solve or improve.

For instance: “We create biodegradable household goods that safeguard both individual health and our planet’s resources.”

A thoughtfully written mission statement establishes the ethos of your company, paving the way for the sections that follow.

2. Clarify the Revenue Model

• Explain how your company makes money.
• Specify your business model, whether product-driven, service-oriented, or a hybrid format.
• Pinpoint how your offering is distinct compared to alternatives in the target market

Example: “Our organization offers a monthly subscription model for providing premium eco-friendly cleaning items directly to consumers’ doorsteps, merging convenience with sustainability.”

3. Narrate Your Company History

• Share a glimpse into the company’s origins, what spurred its creation, and its progress thus far.
• Mention noteworthy milestones, like product rollouts, endorsements, or collaborations.

Example: “Launched in 2024, FreshStart emerged out of a quest to reduce toxins in everyday products. From modest beginnings, it now caters to over 15,000 households while securing partnerships with leading retailers nationwide.”

4. Illustrate Your Industry Role

• Contextualize your position within the industry by describing the current trends or opportunities you’re leveraging.
• Incorporate relevant statistics to add weight to your claims.

Example: “FreshStart stands at the cusp of the $45 billion eco-home care market, which is predicted to expand at a rate exceeding 7% annually. Our unwavering commitment to authenticity and ecological balance puts us in a prime position to capture this growth.”

5. Outline the Structural Backbone

• Specify your company’s legal structure, such as a sole proprietorship, LLC, corporation, or partnership.
• Name key stakeholders and organizational leadership.
• Entity Structure: Privately-held corporation.
• Key Individuals: Maria Lopez, CEO; Daniel Choi, Chief Strategy Officer.

This transparency fosters trust and conveys professionalism.

6. Express Tangible Goals

• Spell out both your immediate priorities and longer-term ambitions.
• Specificity is paramount, ambiguous business goals don’t inspire confidence.
• Immediate Focus: Increase our subscription customer base by 25% within six months.
• Long-term Vision: Achieve carbon-neutral production processes by 2030.

7. Discuss Operations and Physical Presence

• Briefly touch on where the business operates, whether from a physical facility, online, or hybrid model.
• Mention infrastructure details that underline operational readiness.

Example: “Our headquarters are located in Denver, Colorado, where we oversee production, logistics, and customer support operations.”

8. Showcase Key Achievements

• Highlight recognitions or events that validate your enterprise’s track record.
• Select achievements that resonate with your target audience.

Example: “FreshStart proudly won the 2022 ‘Green Innovation Award’ for revolutionizing the household product sector.”

9. Highlight Financial Projections

• Summarize your business’s financial information, focusing on revenue, growth, or funding.
• For startups, emphasize capital raised and the financial objectives or milestones tied to that funding.

Example: “FreshStart has secured $2 million in seed funding and achieved revenue of $750,000 in its second operational year.”

In the next section of your business plan, you will conduct an industry, or market, analysis to highlight key market trends, identify target customer demographics, and demonstrate how your business is uniquely positioned to capitalize on market opportunities.

Company Overview Examples

The Company Overview examples below provide practical insights into crafting a compelling company description tailored to your business’s unique identity and goals.

Example 1: ShineWorks Car Wash

Car wash company overview.

At ShineWorks Car Wash, our purpose is straightforward yet deeply resonant: to redefine what car care means in Huntsville, AL. We aim to fill a glaring void in high-quality car wash options, giving drivers an experience of exceptional service that leaves vehicles refreshed inside and out. It’s not just about clean cars; it’s about building trust and delivering value every single time.

Our business model thrives on variety and flexibility. Customers can select from packages tailored to their needs, whether it’s the Basic Wash for a quick touch-up or Full-Service Detailing for a showroom-level finish. Then there’s the eco-friendly Automated Wash, perfect for those on the go who refuse to compromise on quality. We’ve designed a lineup of services that seamlessly merges efficiency with excellence.

ShineWorks wasn’t born overnight. Our story began with a realization that Huntsville drivers needed better. It all came together on January 3, 2024, led by our founder, John Roberts, who has more than ten years of industry experience. From there, it wasn’t just about opening doors. It was about building a brand, creating something recognizable and trusted. Establishing our S Corporation status, creating a logo, and securing a location were just the beginning.

We’ve stepped into an industry worth $14 billion which continues to grow at nearly 4% annually. The car wash market is evolving, and ShineWorks is ready to lead. Drivers today want speed, but they also want sustainability. Our approach marries those two ideals, giving us a competitive advantage in a crowded landscape. Numbers don’t capture everything. This is about more than growth; it’s about influencing and shaping how people care for their cars.

What’s next? In the short term, we aim to increase our customer base by 30% over the next six months, introducing memberships and exclusive loyalty perks. Longer-term, we’re laser-focused on sustainability. By 2026, we plan to implement advanced water recycling systems that push us toward 80% water efficiency, a milestone that reflects our values as much as our ambitions.

Our operations are rooted in Huntsville, AL where our state-of-the-art facility is a beacon of convenience. Positioned strategically, it offers easy access and helps us deliver streamlined, effective services. This location isn’t just practical, but also a reflection of our commitment to the community.

In a short time, ShineWorks has already reached some exciting milestones. We’ve served over 1,000 customers, earning glowing feedback and repeat business. Our automated wash system, designed with sustainability in mind, places us at the forefront of eco-conscious car care. These aren’t just accomplishments; they prove that we’re onto something big.

Financially, we’re off to a strong start. Within the first quarter, ShineWorks generated $75,000 in revenue. But we know this is just the foundation. As we explore additional funding opportunities, our sights remain fixed on becoming Huntsville’s go-to car wash—and maybe even redefining what a car wash can be.

Example 2: BrightSmile Dentistry

Dentist company overview.

At BrightSmile Dentistry, we aim to do more than provide dental care. We want to transform how people in Kalamazoo, MI, think about their oral health. It’s not just about teeth, but the confidence and well-being we instill in our patients because of our services. Everyone deserves that.

Our revenue model is service-driven. Patients come to us for cleanings, fillings, or braces. We handle these dental services, but what makes us different? We don’t just treat teeth. We treat people. Each patient gets personalized attention, a mix of professionalism and warmth that’s hard to fake. It’s what keeps them coming back.

BrightSmile Dentistry wasn’t an overnight business idea. It started with a need in Kalamazoo MI, where residents traveled miles for decent dental care. We decided to change that. Officially established on January 8, 2024, as an LLC, the business was built step by step. First, a logo that is simple, bright, and inviting. Then, an office space that is central enough to be convenient, and quiet enough to be calming. Our facility is state-of-the-art but with a touch of comfort. Less clinical, more approachable.

The dental services market in the U.S. is immense, estimated at $162 billion and counting. It grows about 4% annually. Numbers like these are exciting but impersonal. We’re not trying to dominate the market. We’re trying to create something that lasts here in Kalamazoo. We’re ambitious but with purpose.

Our business structure is clear: a Limited Liability Company, led by Dr. Jane Doe. She’s not just the founder but the heart of the practice. Her experience in running successful dental clinics gives us a strong foundation. The team around her, including a mix of dental pros and customer care experts, shares her passion for making patients feel at home.

Short-term, our goal is simple: 500 regular patients in year one. Beyond that, a second location within five years is on the table, but only if it feels right. Growth for growth’s sake isn’t the goal. Serving more people, more effectively is what drives us.

From our clinic in Kalamazoo, we operate with the best tools modern dentistry offers. Digital X-rays, intraoral cameras, and other tech that make a difference. But tools are just tools. What matters is how they’re used. For us, technology enhances care, but it doesn’t replace it.

The journey so far has been filled with small victories. Opening our doors, finalizing partnerships with top suppliers, and seeing the first patients leave with a smile. It’s all part of the bigger picture, but progress doesn’t always look grand. Sometimes it’s just a moment, a connection, or a step forward.

We offer more business plan examples in a wide range of industries to help you get started on your own plan.  

Final Pointers

• Aim for Brevity: Condense the company description to 1-2 pages while avoiding over-simplifications.
• Inject Authenticity: Avoid jargon-heavy language and let your company’s unique voice shine through.
• Adapt to Context: Tailor the content for your audience, whether you’re wooing investors or briefing business partners or the internal management team.

A business overview isn’t just a section of a business plan template, it’s your enterprise’s opening argument. Craft it thoughtfully to captivate and inspire confidence in potential investors and stakeholders.

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How to Write a Standout Company Description for Your Business Plan

TABLE OF CONTENTS

A business description should communicate a company’s purpose and what makes it unique and successful.

Let’s go through the elements of a company description, how to write a business description for a business plan and check out company description examples to help you craft a compelling description of your own.

What Is the Use of a Business Description?

The business description of a business plan is an overview of what your company does and why, how it successfully meets its customers’ needs, along with its values and goals for growth. It should pose your value proposition in a way that piques interest and entices readers to review the rest of your business plan.

Keep in mind that readers of your business description may include customers, employees, potential lenders and investors.

What to Include in a Perfect Business Description

When writing the company description for your business plan, it’s important to be concise yet thorough.

This brief description of your business should include the following:

• Business name
• Business owners, founders or current leadership 
• Business location
• Business legal structure
• Product or service offerings
• Target audience 
• Methods for satisfying customer needs 
• Company mission
• Competitive differentiators
• Business goals

Business Description Examples

In your business plan company description, highlight what makes your business different from your competition and how your customers can share that experience. Review these business description examples for inspiration in writing your unique description.

Example 1: Existing LLC

Whether you’re a java junkie or an herbal tea aficionado, Bean Feast offers a satisfying cafe experience for the good people of Chicago and the surrounding region. Co-founded in 2015 by best friends and entrepreneurs Faye Dunway and Rita Harewirth, Bean Feast, LLC, has grown from a single coffee shop in Chicago, Illinois, to a full-service cafe with 3 additional locations in Chesterton, Woodstock and Fort Atkinson, Wisconsin. 

Bean Feast’s owners and staff pride themselves on fulfilling their mission to provide quality drinks and food in an atmosphere that welcomes a diverse customer base. What sets Bean Fest apart is its ethically grown and sourced coffee, specialty espresso drinks and delicious baked goods, including cookies, cupcakes and breads. 

Additionally, while some cafes like to market themselves as cool and exclusive, Bean Feast welcomes everyone, no matter who you are or where you are in life.

Current annual revenue is $645,000, and with a menu expansion and marketing campaign, it’s expected to grow to $720,000 by the end of this fiscal year.

Now let’s break down this brief description of the business to demonstrate how it meets the requirements for a company description for your business plan.

Business name: Bean Feast

Business owners: Faye Dunway and Rita Harewirth

Business locations: Chicago, Illinois, a full-service cafe with 3 additional locations in Chesterton, Woodstock and Fort Atkinson, Wisconsin

Business legal structure: Limited liability company (LLC) 

Product or service offerings : Coffee, espresso drinks, teas and baked goods

Target audience : Coffee and tea aficionados in Chicago and the surrounding area

Methods for satisfying customer needs : Bean Feast provides high-quality specialty drinks and delicious baked goods in a full-service, inclusive and welcoming environment.

Company mission: Bean Feast owners and staff pride themselves on fulfilling their mission to provide quality drinks and food in an atmosphere that welcomes a diverse customer base.

Competitive differentiators : What sets Bean Feast apart is its ethically grown and sourced coffee, specialty espresso drinks and delicious baked goods, including cookies, cupcakes and breads. 

Business goals for future growth: With a menu expansion and marketing campaign, revenue is expected to grow to $720,000 by the end of this fiscal year.

Example 2: Existing S-Corporation

Geoffrey’s Limo Service, co-owned by Geoffrey and Valerie Smith, has been offering luxury chauffeured transportation throughout Greater Philadelphia, Delaware and New Jersey since 2018. Limousines, party buses, vans, luxury sedans and SUVs are available to rent for weddings, proms, corporate events, airport transportation and more. 

Geoffrey’s goal is to ensure the ultimate guest experience that naturally drives repeat and referral business. No detail is overlooked: From ensuring vehicles are readied with a client’s favorite food, drinks and music to having aromatherapy diffusers emit a client’s preferred scent to greet their senses as soon as they step foot into their lavish vehicle. Additionally, where space allows, butlers and bodyguards can be available to serve as complements to the client experience, setting Geoffrey’s apart from the competition.

This S-corporation has current annual revenue of $750,000, which is expected to grow to $875,000 by the end of the company’s fifth year in operation.

Business name : Geoffrey’s Limo Service

Business owners : Geoffrey and Valerie Smith

Business locations : Greater Philadelphia, Delaware and New Jersey

Business legal structure : S-corporation

Product or service offering: Limousine and luxury ground transportation 

Target audience: Businesses and individuals in need of high-quality transportation in Greater Philadelphia, Delaware and New Jersey

Methods for satisfying customer needs: Geoffrey’s provides lavish chauffeured travel services, ensuring no detail is overlooked.

Company mission : Geoffrey’s goal is to ensure the ultimate guest experience that naturally drives repeat and referral business.

Competitive differentiators : Vehicles are readied with a client’s favorite food, drinks and music. Aromatherapy diffusers emit a client’s preferred scent. Butlers and bodyguards are available to serve as complements to the client experience.

Business goals : Current annual revenue of $750,000 is expected to grow to $875,000 by the end of the company’s fifth year in operation.

Example 3: Startup Sole Proprietorship

Whole Health Caterers will offer paleo and keto-friendly, low-carb food preparation services for meal delivery as well as special events throughout Miami, Fort Lauderdale and Palm Beach. Headquartered in Miami Beach, FL, the company is set to open in May 2023. It is structured as a sole proprietorship, operated by owner John Fish, who holds a master’s degree in nutritional science and a diploma in culinary arts. 

Whole Health Caterers sets itself apart by serving a local niche market of clientele who seek convenience but don’t want to sacrifice flavor when they’re looking to meet their specialized dietary needs.

The business is projected to have annual revenue of $100,000 by the end of the first year. By the fifth year, $350,000 is expected. To achieve its revenue goals, Whole Health Caterers will advertise to health and fitness enthusiasts as well as network with health-conscious organizations, industry leaders and influencers. Whole Health Caterers will also promote referral credits to existing clients and offer discounts to new meal plan subscribers to further build its customer base.

Business name : Whole Health Caterers

Business owner : John Fish

Business locations : Miami, Fort Lauderdale and Palm Beach

Business legal structure : Sole proprietorship

Product or service offering: Paleo and keto-friendly, low-carb food preparation services 

Target audience: Health and fitness enthusiasts as well as network with health-conscious organizations, industry leaders and influencers in South Florida

Methods for satisfying customer needs: Using the skills obtained from a master’s degree program in nutritional science and a diploma program in culinary arts, the owner of Whole Health Caterers crafts healthful, dietary-specific meals. 

Company mission : Whole Health Caterers will offer paleo and keto-friendly, low-carb food preparation services for meal delivery as well as special events throughout Miami, Fort Lauderdale and Palm Beach. 

Competitive differentiators : Whole Health Caterers sets itself apart by serving a local niche market of clientele who seek convenience but don’t want to sacrifice flavor when they’re looking to meet their specialized dietary needs.

Business goals : The business is projected to have annual revenue of $100,000 by the end of the first year. By the fifth year, $350,000 is expected.

Business Description Templates

If you need additional guidance regarding how to write a company description in a business plan, working with a business description template could help you through the process.

The following resources on the web offer downloadable documents that can help you frame your company description for your business plan:

• Template.net
• Examples.com

Tips for Writing Your Business Description

Now that you’ve seen a few business description examples and understand what the company description is all about, here are a few tips to help you fine-tune your writing.

Don’t Get Carried Away

Think of your business description as the elevator pitch of your business plan – it says the most about what people should expect from your business in a succinct way. Keep in mind that you’ll have your entire business plan to expound on your company, so be brief in this section and limit yourself to a few paragraphs. Hit the main points, but keep things high level.

Write for People

Remember, you want people to read your business plan company description, so demonstrate this enthusiasm in your writing. You’re selling yourself as well as your products and services, so be sure to engage your readers and show what sets your company apart.

As a small business owner, you’re likely writing your business description and don’t have an editing team at your disposal. That said, read over your finished product to ensure there are no errors and your dates, data points and figures are correct. Consider having a colleague or trusted professional read over your business description as well.

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How to Write a Company Description

What Is a Company Description?

Parts of a company description, how to write your company description, example company description, the bottom line on writing a company description, frequently asked questions (faqs).

The company description of your business plan describes the vision and direction of the company so potential lenders and partners can develop an accurate impression of who you are. A good company description should succinctly outline key details while conveying your passion for the mission.

Here's what you need to know to write an effective company description for your small business.

Key Takeaways

• A company description is an overview of the company's plan, vision, and relationships.
• These documents typically include the company's name, business structure, mission statement, and an overview of the target market.
• A good company description is clear and concise. You can leave out details that your business plan covers elsewhere.

The company description section of your business plan is typically the second section, coming after the executive summary . The company description outlines vital details about your company, such as where you are located, how large the company is, what you do, and what you hope to accomplish.

The exact elements included in your company description can vary, but some elements are more common than others and most likely should be part of the section:

• Company name : The official name of your business as registered in the state where you do business
• Type of business structure : Sole proprietorship, LLC, partnership, or corporation
• Ownership/ management team : Names of the key people behind the company
• Location : Where is the company headquartered?
• Company history : When was the business started? What inspired you to start the business? What need does your company fulfill?
• Mission statement : A clear statement that represents the purpose of your company
• Products/services and target market : A brief overview of what you plan to sell and to whom
• Objectives : An outline of what you want to accomplish in the immediate future based on the data in the rest of the business plan as well as future growth goals
• Vision statement : A statement about how you envision the future of the company

Once you've organized the key information that you want to include, you need to write the section in a way that will be appealing to readers. Follow five steps to help create a successful company description.

1. Start With an Elevator Pitch

Begin the company description section with a paragraph that captures all of the vital information about your company. Imagine you are giving an elevator pitch about your company and want to express the key characteristics in just a few sentences. Use the same thought process for your introductory paragraph.

2. Stick With High-Level Information

Some of the information in your company description will be included in other sections of your business plan. For these parts, provide only a high-level overview and leave all of the specific details for the related section.

3. Show Your Passion

Let your passion and excitement show in the company description section as you explain why you started the company and what you hope to accomplish. Your excitement should show in the tone of your writing, and your aim should be to get the reader interested in reading the rest of the business plan.

4. Do a Length Check

When you're writing about the passion and excitement that led you to start your company, it can be easy to get carried away and use more words than necessary to get your point across. Once you've drafted your company description, go back and cut out any unnecessary parts or redundant information to make it clear and concise.

5. Have It Proofread

Ask someone who hasn't seen various drafts of the company description to review it for typos, grammatical errors, or flow problems that could hurt the impact it has on the reader.

Below is a sample company description, pulled from Target's annual report.

Target Corporation (Target, the Corporation, or the Company) was incorporated in Minnesota in 1902. Our corporate purpose is to help all families discover the joy of everyday life. We offer to our customers, referred to as "guests," everyday essentials and fashionable, differentiated merchandise at discounted prices. We operate as a single segment designed to enable guests to purchase products seamlessly in stores or through our digital channels. Since 1946, we have given 5 percent of our profit to communities.

The company description is a crucial part of any business plan. You should use it to highlight key details about your company. Writing a good company description for your small business starts with a solid elevator pitch. A general overview of your vision and goals should be supplemented with details about exactly what your company does, where it is located, how it is structured, and other information along these lines.

What should I write in a company description?

Your company description should include all of the basic details about your company. You don't need to go into granular detail in a company description, but you should give an overview of what you do, how your company is structured , and the vision you have for the future.

What is a company summary?

" Company summary " is another way to refer to a company description. The terms can be used interchangeably.

Clute Institute. " Using Business Plans for Teaching Entrepreneurship ," Page 734.

Small Business Administration. " Write Your Business Plan ."

Office of the Comptroller of the Currency. " Business Plan Guidelines ," Page 2.

Target Corporation. " Form 10-K ."

Related Articles

Business Plan Section 2: Company Description

The company description provides a snapshot of your business. Check out the 11 components to include in this section of your business plan.

Think of the company description section of your business plan as a snapshot of who you are and what your company is all about. What do you do? How are you different from other businesses? What niche does your product or service fill? It doesn’t have to be lengthy, but it should be well-thought out to present you in the best light while being as accurate as possible. Some specifics to include:

1. Company Name

The official legal name of your business.

2. Business Structure

Are you a sole proprietorship, limited liability corporation, partnership or corporation?

3. Ownership or Management Team

Who are the key players? What makes them (or you) qualified to run your business?

4. Location

Where are you headquartered?

5. Company History

When and where were you founded? What inspired you to come up with the idea for your business?

6. Mission Statement

What is the purpose of your company? What need does your product or service fill?

7. Products or Services

What are you making or selling, or what service are you providing?

8. Target Market

Who are you selling to? Who are the customers, organizations, or other businesses that your company will serve?

9. Competitive Advantages

What separates you from the competition? What is it about you that will make your business a success? Why will people want to do business with you?

10. Objectives

What would you like to accomplish in the immediate future, and what are your longer-term goals?

11. Vision Statement

What does the future of your company look like? How will you craft your vision statement?

Now that you have some ideas of the substance, think about the style. Even though the purpose of the company description is to give basic information about your business, it’s an opportunity to promote yourself and explain why you’re worth loaning money to or being involved with.

Final Touches

If you had just a few moments with a potential customer or investor, what would you tell them about your business? Start with an elevator pitch-a quick, few-sentence description that captures all the important information about your company, along with your passion for what you’re doing. Some of what you’ll want to say about the company will be covered in other sections of the business plan, so keep this part more of an overview.

Let your passion shine. When you share the story about why you started your company and what keeps you motivated, it helps you stand out from the crowd and gives your plan a personal touch. Be professional, but don’t be afraid to let your excitement show and draw the reader in. Make them look forward to reading the rest of the plan. That said, don’t get carried away. It may be hard to find the balance between brevity and excitement about all you are doing and all you have planned, but it’s important to do so. Get an editor that you trust to make sure you’ve kept a professional tone yet conveyed the essence of what differentiates your business from others. Editing is important. You may tackle the company description first when writing your plan, then find you cover a lot of the information in greater depth as you go along. Definitely plan to read and re-read what you’ve written, and cut out any unnecessary or duplicate information.If possible, proofreading is even more important than editing! Few things will have someone take you less seriously than typos, misspellings, and grammatical errors. This advice covers more than just the company description portion of your business plan, of course. Make sure your business plan presents you in the best light, not just as far as content is concerned, but how it’s written, as well.

To sum up, the company description is the basic introduction to your business. If someone reads only this part of your plan, they should be able to get what you’re trying to accomplish.

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