Without too much superfluous detail, the company description section of the business plan should clearly define the basics of your company or business. This part of the business plan describes the company thoroughly, already established or about to be, and the basic business concept.
What to include in the Company DescriptionWhen you write a company description, you should cover the following:
- Company name
- Form of organization. (Sole Proprietor, Partnership, etc.)
- Ownership — full name of the owner/owners
- Location, offices headquarters, branches. Explain the benefits of the location
- Definition of the business. The products or services will be outlined without too much detail. A more thorough description will appear in the chapter on products. It will also describe the reasons for and advantages of the choice of product or service.
- History of the company. If the business is new, give a short historical sketch of the idea behind the foundation of the company. For an already established business, explain its origin, and the development of the product or service over time. Include some historical data on sales and profits. After giving the historical background, outline the current status of your business. State the business history and purpose of the company clearly.
- Company goals — plans to be accomplished over coming years (up to five years in advance), and how these are going to relate to the investment you are seeking. Keep the the goals realistic and credible.
- Future plans for the growth and expansion of the company. Will you keep the business smal? Do you plan to expand extensively? Link this to the projected investment. Once again, be moderate and keep things simple and believable.