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2. Business Plan Format, Section 2:
General Company Description (1 – 2 pages)
The general company description section usually follows the executive summary in the started business plan format. It is used to give a high level overview of the company and the business that it engages in.
This introductory section of the plan section should include:
- Name of the company, type of legal entity, ownership, significant assets
- Mission statement of the business
- Company goals and objectives
- The main features of the industry in which you will operate
- The most important company strengths and core competencies
Avoid getting into too much detail about the business in the general company description. It is often tempting to try and cram everything about the business into this section but there are opportunities to get into the details of strategy, marketing, operations, people and finances further on in the plan.
Rather focus on the description of the industry. Is the business retail, wholesale, food service, manufacturing or service-oriented? Provide an indication of how big the industry is and why it has become so popular. You can also highlight some of the trends currently influencing the growth of the industry. Try as much as possible to prove how much opportunity there is in the industry – do so with statistics and anecdotal information.
You should also explain the target market and how your product will be distributed to the market, as well as the support systems including advertising, promotions and customer service strategies. In the description you can include the unique features setting your product or company apart from others in the industry.
The business description should also answer the questions about how your business is going to make a profit. If you are using the plan to apply for funding, explain why the money is going to make your business more profitable.
The length of the description will depend on the complexity of your plan, if your plan isn’t complicated, keep the description short by describing the industry in one paragraph, the product in another and the business in three of four paragraphs.