Building a business plan that investors will pay attention to includes many elements. Each has it’s own focus, but the most effective for informing potential investors about your business is a solid company description. This section of the plan is an immersive review of the top to bottom aspects of the business. Much like a formal meeting after a networking event, the company description of a business plan follows up your executive summary to share the specifics of your company, it’s goals and it’s purpose with the intention of attracting funding.
company description basics
Defining the company in a business plan description is not an insurmountable task. Take into account the function of the company and what it brings to the marketplace. Consider this section of the business plan an escalator pitch – a little longer but serving the same purpose.
Start writing the description with a summary of your industry. Be honest with investors as to the market’s current state concerning trends, growth and current volume. Clearly state why your company will succeed in this environment. Be direct with potential difficulties such as economic or political forecasts that might slow down profits. Investors want facts to base their investment on, not guesses. Because of this, the company description will not contain ‘approximations.’
Once you have introduced your market to investors, demonstrate how the product and service will meet the needs presented in that environment. Share information on the consumer base your company will serve and describe how your company will do it better than the competition.
include your mission statement
Though a significant entity of its own, the company mission statement should be included in your business plan company description. As an all-purpose element of your marketing plan, the mission statement sums up the purpose for the company so that customers, your employees, your investors and yourself are clear on what your company achieves.
A good mission statement starts with understanding the target market and is written with them in mind. A mission statement targeted to a youthful audience will sound much different than one written for Wall Street money market fund and their clients.
The mission statement will also take into account what the marketing focus will be geographically. Therefore, letting your audience know where your product is manufactured and sold is critical. For an investor, this will help develop a sense of reach and potential growth.
Lastly, a mission statement includes your philosophy relating to business. This incorporates the values your company is based on. Good mission statements become part of the culture of a company, where valued employees and customers relate in a positive manner and develop loyalty not only to the product or service, but to the philosophy it exudes as well.
share your company’s goals
Use this part of the company description to review the short and long term goals of the company. Draw from plans to expand with locations, markets, brands, products and services that will impact the company as it progresses. Utilize reasonable and quantifiable measures to demonstrate the validity of these expansion plans. Using market research and sales history, project the sales growth of your product or service.
Demonstrate that the goals of the company are achievable in relation to the current state of your industry and the projected conditions five and ten years down the line. Ultimately, an investor’s goal is to make a profit. A company that has no plans to expand is a red flag to an investor. Be honest and determine what growth means for your company.
organize your company description
Lay out your company description in a logical and organized manner. Much like a college essay, place the most important information at the front of the description. Place the least critical toward the end. Present a clear picture of what your company is, what it does and what it plans to do.
Dropping in information in a random fashion is a sure way of confusing potential investors. To simplify, follow simple essay structure and edit as you go along. If your business description looks scattered, it will make you look unprofessional and disorganized. This will translate to your business savvy and will not help you at all.
Once your description is complete, pay a professional to review for omissions and errors. A small investment in organization and presentation will go a long way. If you need assistance, contact Spotlight Publicity for a free consultation.