The title of this entry is the first major component of your business plan, usually called the Company Description. Depending on what you are trying to accomplish with the plan and when you went into business, this section will vary. At its core, though, the same information is still needed.

First, give the full legal name of the company, the date you were incorporated (or organized), and where you are located. Is there anything beneficial about your location?

Next, give the full legal name of all the owners of the company.

Next, give a brief description of what the business does and what types of things you offer for sale. What need are you meeting for customers? You will get into more detail later in the plan, but you are trying to give the reader an idea as to what kind of company he or she is reading about.

If this is a start-up, give a history of yourself (and any other partners). What qualifies you for this sort of business? What kind of experience do you bring to the company? For instance, you may say you are starting a coffee shop/bakery with your three best friends. However, for the last 10 years, all three of you have sold cell phones. The reader needs to grasp how you understand coffee and business well enough to run a coffee business.

If your business has been around for a while, give a history of how the business has gotten from start-up to wherever it is now.

Finally, include a paragraph or two about where your business is now and where it will be in the future. How many employees you have, how many locations, and maybe a snippet about sales will all be helpful pieces of the puzzle. Again, more details about these will be given in the rest of the plan. If you are seeking investment money, you need to go into more detail here about what your basic goals are and how/why they will be accomplished.

This is an important section of the plan- it can set the tone for the reader. Describing your company sounds simple, but it never is. It will help you get your arms around what your company is and where you are headed, and will convince potential investors to keep reading.

Mike Freeman
Pursue Business Advisers