How to write the business description section of a business plan
How to write the business description section of a business plan
If you are in business, you most likely have heard about business plans before, even if you do not have one. A business plan is a document that does many things for you as a business owner or entrepreneur – many things, trust me! One of these many things, if not the most important thing, is that a business plan helps you to articulate and sanitize your thoughts about your business venture. The process of writing a business plan brings you to a depth of understanding about the business that is remarkable. The other way to reach such a depth of understanding without the business plan would be to actually run the business and learn through mistakes, trials, and errors over a long period. Writing a business plan can be somewhat challenging, I admit, but taking the pain and giving the time to write it can save you a lifetime of error, mistakes, losses, and pain.
When writing the business plan for your company, the very first section that is presented is the Executive Summary (although that doesn’t mean it is written first – it is most times written last). Next to the Executive Summary is the Business Description section, and it is a very crucial section that must be given due attention.
What is the business description section of a business plan?
The business description section of your business plan is where you have the privilege to provide important details about your company that helps your readers gain an understanding of what your company is all about. If you do a good job here, you can “sell” a powerful mental image of your company to your audience, whether they are investors, partners, or funders. It is the section of the business plan where you let them know things about your company such as the name of the company, the legal structure you have adopted, the size of the company, what you do (i.e. your products and/or services), what are the vision and mission of the company and your overall goals, and what you plan to accomplish in the short term and the long term.
What are the importance of the business description section of your business plan?
- Development of elevator pitch
Before writing the business description section of your business plan, being able to describe your business and what it stands for in a short, concise, simple, but powerful statement may prove difficult. However, once you can successfully write this section of your business plan, describing your business in this way becomes simple. An elevator pitch is a succinct and short persuasive writing (or speech in most cases) that can be used to spark the interest of people in an idea, a business, service or product, a project, or in a person. Most business funding and accelerator programmes require you make an elevator pitch about your business idea and the business description section of your business plan is quite instrumental in creating an elevator pitch that drives home your point.
- Communicates vital details about your company
When seeking funding, partnership, or when selling your company, the business description section of your business plan provides the other party with quick and summarized details about your business and the idea that you are projecting. This helps them to gain an understanding of your business quickly. These details that the business description section of a business plan presents vary from one business plan to another depending on the size, type, goals, structure (and so on), of the business. Whatever language is used, and no matter how it is written, this section of the business plan is used to talk essentially about where you started from, where you are now, and where you are going. The following are examples of details you should include in the business description section of your business plan:
- The name of your company: this is quite simple, just state your company’s name.
- History of the company: if you are a startup or a business that is yet to commence, you possibly won’t have much to talk about here except perhaps to briefly mention some of the milestones you have reached since the inception of your business idea.
- The business structure you have adopted: Indicate whether your business is operating a sole proprietorship, partnership, or limited liability company. This is critical information that must not be omitted when writing this part of your document. Never forget that.
- Company registration information: in addition to the business structure information, you should state if you have registered with the government and appropriate authorities and regulatory bodies as may be applicable within your industry.
- Location(s) of your offices and facilities: if you have many branches, you need to state the actual address of your main office and simply mention that you have branches at such and such places
- The company ownership: are you the only owner or the business is co-owned by yourself and some other persons?
- Your management team: Briefly talk about the individuals who make up your management team. State the qualities and experiences they each possess that make them suitable for their roles.
- Your company’s vision statement: this is a statement that describes the desired future position or attainment of your company.
- Your mission statement: this is a description of the approach you will take to realize your overall business goal.
- Your product and services: briefly describe the product(s) and/or service(s) you are trying to sell.
- Your target market: who are the people (or group of people) you are trying to sell to? Try describing them in a nutshell.
- Your business goals and objectives: These are very important because they are pointers to the fact that you have clarity on your business’s future and you have the steps that will take you there.
Read Also: How to write the competition analysis of a business plan
How to write the business description section of a business plan
How to write the business description section of a business plan
Now, it is time to write the business description section of your business plan, let the following principles guide you as you write:
- Never miss out on important details
Include all important details, especially those we have highlighted above. If there are other important details about your business or company which you strongly want your reader or audience to be aware of, you can include them as well.
- Engage the imagination of your audience
Never forget the goal of the business description of your business plan. The main goal (among others) is to sell your company up for favour and acceptance with the readers of your business plan. Always keep that in mind and do the writing to achieve that goal. Use languages, tones, and words that are appealing and engages the imagination of your readers, giving them a great imagination and mental pictures about your business and its prospects.
- Keep it short and simple (KISS)
Keep your writings in this section very short, simple, and easy to read. What impresses your audience is not your grammar, big English words, or long writings. It does no good if you spend time writing long articles that ended up boring your audience.
- Don’t forget to check for errors
You should not be in a hurry to submit a document like this, and never be overconfident. Check for errors and correct them. If you are not very good with English grammar, it does no harm to ask for someone’s help who can help you to check what you have done and probably make necessary corrections, if any.
If you need a service of a Professional Business plan writer, then Dayo Adetiloye Business Hub is the place to go Call or WhatsApp us now on 081 0563 6015, 080 7635 9735, 08113205312 or send an email to dayohub@gmail.com and we will solve any of your business plan problems.
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