One of the most important aspects of a business plan is to demonstrate to investors and lenders the profit validity of the company. A company description allows the reader to get an understanding of various aspects of the business that lead to profitability. Separate from the company description, the organization and management section should illustrate how the company is organized and managed for the purpose of profitability.
Writing the Business Plan Company Description
The company description should follow the business plan executive summary and market analysis. This section should act as an introduction to the remainder of the plan. Some of the following should be included within company description:
- Company name
- Physical location of the business
- A description of the products and/or services
- Legal description (sole proprietorship, partnership, type of corporation)
- Goals and objectives
- Stage of growth (new business, company history)
The company description of the business plan should also touch on factors that will result in increased profitability. It should also illustrate what makes the company unique or innovations that will draw consumers to the product or service offerings. Any aspect of the company that has a competitive edge should be listed in the company description section.
Writing the Business Plan and Company Organization
Showing how the company is organized is an important part of the business plan. One of the easiest methods to show how the company is organized is to create an organization chart. For potential investors, a well thought out organization chart shows that the entrepreneur has all of his/her bases covered for different aspects of the business.
Some of the areas that should be covered within the company may include some of the items below. Of course these are generalities and can vary depending on the specific business model.
- Sales
- Marketing
- Service
- Record and bookkeeping
- Maintenance
- Production
- Warehousing
Writing the Business Plan and Management Structure
The management staff should be listed in the organization with specific areas of responsibilities. A separate section should also be created that goes into more specific details about management qualifications. One method for listing management qualifications is to insert individual resumes for each manager into this section of the business plan. Make sure that each resume contains:
- Managers name
- Qualifications
- Current responsibilities
- Prior and current work experience
- Education
- Awards and certificates
- Community participation
The Organization and Management of the company should be combined into the same section of the business plan, whereas the Company Description should be a separate section. According to the Small Business Administration (SBA), the Company Description should be the third element of the business plan and the Organization and Management should the fourth element.
Source:
SBA Website - Elements of a Business Plan
James Clausen - Clausen received a Bachelors Degree in Business Administration in Automotive Management and Marketing at Northwood University, graduating ...
Join the Conversation