description of a business in a business plan

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How to Write a Standout Company Description for Your Business Plan

TABLE OF CONTENTS

A business description should communicate a company’s purpose and what makes it unique and successful.

Let’s go through the elements of a company description, how to write a business description for a business plan and check out company description examples to help you craft a compelling description of your own.

What Is the Use of a Business Description?

The business description of a business plan is an overview of what your company does and why, how it successfully meets its customers’ needs, along with its values and goals for growth. It should pose your value proposition in a way that piques interest and entices readers to review the rest of your business plan.

Keep in mind that readers of your business description may include customers, employees, potential lenders and investors.

What to Include in a Perfect Business Description

When writing the company description for your business plan, it’s important to be concise yet thorough.

This brief description of your business should include the following:

• Business name
• Business owners, founders or current leadership 
• Business location
• Business legal structure
• Product or service offerings
• Target audience 
• Methods for satisfying customer needs 
• Company mission
• Competitive differentiators
• Business goals

Business Description Examples

In your business plan company description, highlight what makes your business different from your competition and how your customers can share that experience. Review these business description examples for inspiration in writing your unique description.

Example 1: Existing LLC

Whether you’re a java junkie or an herbal tea aficionado, Bean Feast offers a satisfying cafe experience for the good people of Chicago and the surrounding region. Co-founded in 2015 by best friends and entrepreneurs Faye Dunway and Rita Harewirth, Bean Feast, LLC, has grown from a single coffee shop in Chicago, Illinois, to a full-service cafe with 3 additional locations in Chesterton, Woodstock and Fort Atkinson, Wisconsin. 

Bean Feast’s owners and staff pride themselves on fulfilling their mission to provide quality drinks and food in an atmosphere that welcomes a diverse customer base. What sets Bean Fest apart is its ethically grown and sourced coffee, specialty espresso drinks and delicious baked goods, including cookies, cupcakes and breads. 

Additionally, while some cafes like to market themselves as cool and exclusive, Bean Feast welcomes everyone, no matter who you are or where you are in life.

Current annual revenue is $645,000, and with a menu expansion and marketing campaign, it’s expected to grow to $720,000 by the end of this fiscal year.

Now let’s break down this brief description of the business to demonstrate how it meets the requirements for a company description for your business plan.

Business name: Bean Feast

Business owners: Faye Dunway and Rita Harewirth

Business locations: Chicago, Illinois, a full-service cafe with 3 additional locations in Chesterton, Woodstock and Fort Atkinson, Wisconsin

Business legal structure: Limited liability company (LLC) 

Product or service offerings : Coffee, espresso drinks, teas and baked goods

Target audience : Coffee and tea aficionados in Chicago and the surrounding area

Methods for satisfying customer needs : Bean Feast provides high-quality specialty drinks and delicious baked goods in a full-service, inclusive and welcoming environment.

Company mission: Bean Feast owners and staff pride themselves on fulfilling their mission to provide quality drinks and food in an atmosphere that welcomes a diverse customer base.

Competitive differentiators : What sets Bean Feast apart is its ethically grown and sourced coffee, specialty espresso drinks and delicious baked goods, including cookies, cupcakes and breads. 

Business goals for future growth: With a menu expansion and marketing campaign, revenue is expected to grow to $720,000 by the end of this fiscal year.

Example 2: Existing S-Corporation

Geoffrey’s Limo Service, co-owned by Geoffrey and Valerie Smith, has been offering luxury chauffeured transportation throughout Greater Philadelphia, Delaware and New Jersey since 2018. Limousines, party buses, vans, luxury sedans and SUVs are available to rent for weddings, proms, corporate events, airport transportation and more. 

Geoffrey’s goal is to ensure the ultimate guest experience that naturally drives repeat and referral business. No detail is overlooked: From ensuring vehicles are readied with a client’s favorite food, drinks and music to having aromatherapy diffusers emit a client’s preferred scent to greet their senses as soon as they step foot into their lavish vehicle. Additionally, where space allows, butlers and bodyguards can be available to serve as complements to the client experience, setting Geoffrey’s apart from the competition.

This S-corporation has current annual revenue of $750,000, which is expected to grow to $875,000 by the end of the company’s fifth year in operation.

Business name : Geoffrey’s Limo Service

Business owners : Geoffrey and Valerie Smith

Business locations : Greater Philadelphia, Delaware and New Jersey

Business legal structure : S-corporation

Product or service offering: Limousine and luxury ground transportation 

Target audience: Businesses and individuals in need of high-quality transportation in Greater Philadelphia, Delaware and New Jersey

Methods for satisfying customer needs: Geoffrey’s provides lavish chauffeured travel services, ensuring no detail is overlooked.

Company mission : Geoffrey’s goal is to ensure the ultimate guest experience that naturally drives repeat and referral business.

Competitive differentiators : Vehicles are readied with a client’s favorite food, drinks and music. Aromatherapy diffusers emit a client’s preferred scent. Butlers and bodyguards are available to serve as complements to the client experience.

Business goals : Current annual revenue of $750,000 is expected to grow to $875,000 by the end of the company’s fifth year in operation.

Example 3: Startup Sole Proprietorship

Whole Health Caterers will offer paleo and keto-friendly, low-carb food preparation services for meal delivery as well as special events throughout Miami, Fort Lauderdale and Palm Beach. Headquartered in Miami Beach, FL, the company is set to open in May 2023. It is structured as a sole proprietorship, operated by owner John Fish, who holds a master’s degree in nutritional science and a diploma in culinary arts. 

Whole Health Caterers sets itself apart by serving a local niche market of clientele who seek convenience but don’t want to sacrifice flavor when they’re looking to meet their specialized dietary needs.

The business is projected to have annual revenue of $100,000 by the end of the first year. By the fifth year, $350,000 is expected. To achieve its revenue goals, Whole Health Caterers will advertise to health and fitness enthusiasts as well as network with health-conscious organizations, industry leaders and influencers. Whole Health Caterers will also promote referral credits to existing clients and offer discounts to new meal plan subscribers to further build its customer base.

Business name : Whole Health Caterers

Business owner : John Fish

Business locations : Miami, Fort Lauderdale and Palm Beach

Business legal structure : Sole proprietorship

Product or service offering: Paleo and keto-friendly, low-carb food preparation services 

Target audience: Health and fitness enthusiasts as well as network with health-conscious organizations, industry leaders and influencers in South Florida

Methods for satisfying customer needs: Using the skills obtained from a master’s degree program in nutritional science and a diploma program in culinary arts, the owner of Whole Health Caterers crafts healthful, dietary-specific meals. 

Company mission : Whole Health Caterers will offer paleo and keto-friendly, low-carb food preparation services for meal delivery as well as special events throughout Miami, Fort Lauderdale and Palm Beach. 

Competitive differentiators : Whole Health Caterers sets itself apart by serving a local niche market of clientele who seek convenience but don’t want to sacrifice flavor when they’re looking to meet their specialized dietary needs.

Business goals : The business is projected to have annual revenue of $100,000 by the end of the first year. By the fifth year, $350,000 is expected.

Business Description Templates

If you need additional guidance regarding how to write a company description in a business plan, working with a business description template could help you through the process.

The following resources on the web offer downloadable documents that can help you frame your company description for your business plan:

• Template.net
• Examples.com

Tips for Writing Your Business Description

Now that you’ve seen a few business description examples and understand what the company description is all about, here are a few tips to help you fine-tune your writing.

Don’t Get Carried Away

Think of your business description as the elevator pitch of your business plan – it says the most about what people should expect from your business in a succinct way. Keep in mind that you’ll have your entire business plan to expound on your company, so be brief in this section and limit yourself to a few paragraphs. Hit the main points, but keep things high level.

Write for People

Remember, you want people to read your business plan company description, so demonstrate this enthusiasm in your writing. You’re selling yourself as well as your products and services, so be sure to engage your readers and show what sets your company apart.

As a small business owner, you’re likely writing your business description and don’t have an editing team at your disposal. That said, read over your finished product to ensure there are no errors and your dates, data points and figures are correct. Consider having a colleague or trusted professional read over your business description as well.

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Business Description

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In the dynamic world of business, a well-crafted business description is essential for effectively communicating the nature and purpose of your company. This article provides a comprehensive guide on drafting a business description, with over 23 examples in various formats such as Google Docs, Word, Outlook, Apple Pages, and PDF. We will explore the step-by-step process of creating a compelling business description, answer frequently asked questions, and provide links to related articles for further reading.

What is a Business Description?

A business description is a concise overview that provides key information about a company, including its mission, products or services, target market, and competitive advantage. It serves as an introduction to potential investors, partners, and customers, giving them a clear understanding of what the business is all about.

Examples of Business Description

A well-crafted business description can effectively communicate the essence of your company to potential customers, investors, and partners. Here are a few examples across different industries:

1. Technology Company

Tech Innovators Inc. Tech Innovators Inc. is a leading technology company based in San Francisco, specializing in innovative software solutions for businesses of all sizes. Our mission is to empower companies with cutting-edge technology that enhances efficiency and drives growth. We aim to be the global leader in business technology solutions. We offer a range of products including cloud-based project management tools, AI-powered analytics software, and custom application development services. Our unique selling proposition lies in our ability to provide tailored solutions that meet the specific needs of each client, ensuring maximum efficiency and productivity. Our target market includes small to medium-sized enterprises (SMEs) in various industries, looking to leverage technology to improve their operations. We address the need for efficient project management, data analysis, and customized software solutions that streamline business processes. Our competitive advantage comes from our tailored solutions and a dedicated team of experienced professionals. We are positioned as a top provider in the tech industry, known for our innovation and customer-centric approach. Our management team comprises experienced professionals from top tech companies. Our CEO, Jane Doe, has over 20 years of experience in the tech industry and has led the company to significant growth since its inception. Financially, we are robust, with annual revenue growth of 20% and clear plans for future expansion.

2. E-commerce Retailer

Fashion Forward Fashion Forward is a premier online retailer based in New York City, offering a curated selection of contemporary women’s fashion. Our mission is to empower women through style, providing access to the latest trends and timeless pieces. Our vision is to be the go-to destination for fashion-forward women around the world. We offer a wide range of products including dresses, tops, bottoms, accessories, and shoes from emerging and established designers. Our unique selling proposition is our commitment to quality, exclusivity, and customer satisfaction, ensuring a unique shopping experience. Our target market is fashion-conscious women aged 18-35 who value quality, exclusivity, and the latest trends. We cater to their need for stylish, high-quality clothing and accessories that make a statement. Our competitive advantage lies in our exclusive partnerships with designers and our dedication to personalized customer service. We are recognized as a leader in the online fashion retail space, known for our trendsetting collections and exceptional customer experience. Our management team consists of industry veterans with extensive experience in fashion retail and e-commerce. Our founder, Emily Smith, has over 15 years of experience in the fashion industry and has successfully built Fashion Forward into a thriving business. Our financial health is strong, with consistent growth in sales and a loyal customer base.

3. Restaurant

Gourmet Garden Gourmet Garden is a family-owned restaurant located in the heart of Chicago, specializing in farm-to-table dining. Our mission is to provide a unique culinary experience by offering fresh, locally-sourced dishes that celebrate the flavors of the season. Our vision is to be a leader in sustainable and innovative dining. We offer a diverse menu that changes seasonally, featuring dishes made from the freshest ingredients sourced from local farms. Our unique selling proposition is our commitment to sustainability and our creative, seasonal menu that offers something for everyone. Our target market includes food enthusiasts, health-conscious diners, and families who appreciate high-quality, locally-sourced meals. We meet their needs by providing a dining experience that combines delicious food with a commitment to sustainability. Our competitive advantage is our strong relationships with local farmers and our dedication to sustainability. We are known for our exceptional food, welcoming atmosphere, and innovative approach to dining. Our management team includes experienced restaurateurs and chefs dedicated to providing an outstanding dining experience. Our head chef, John Doe, has over 20 years of culinary experience and a passion for farm-to-table cuisine. Financially, we have seen steady growth, with a loyal customer base and positive reviews.

4. Healthcare Provider

Healthy Horizons Clinic Healthy Horizons Clinic is a state-of-the-art medical facility located in Los Angeles, offering comprehensive healthcare services to families and individuals. Our mission is to provide high-quality, compassionate healthcare that meets the diverse needs of our community. Our vision is to be the preferred healthcare provider in the region. We offer a wide range of services including general practice, pediatrics, women’s health, and mental health services. Our unique selling proposition is our holistic approach to healthcare, combining advanced medical treatments with personalized care. Our target market includes families, children, and individuals seeking comprehensive and compassionate healthcare services. We address their needs by offering a full spectrum of medical services in one convenient location. Our competitive advantage lies in our team of highly skilled healthcare professionals and our commitment to patient-centered care. We are recognized for our excellent patient outcomes, advanced medical technology, and compassionate approach to healthcare. Our management team includes experienced healthcare administrators and medical professionals dedicated to providing the highest standard of care. Our medical director, Dr. Jane Smith, has over 25 years of experience in family medicine and leads a team of dedicated healthcare providers. Financially, we are stable with a growing patient base and positive community impact.

Examples of Business Description for Food

Crafting a compelling business description for a food-related business requires highlighting your unique offerings, the quality of your products, and your commitment to customer satisfaction. Here’s an example:

Heavenly Bites Bakery Heavenly Bites Bakery is a family-owned bakery located in the heart of San Francisco, dedicated to creating delicious, freshly baked goods using the finest ingredients. Our mission is to bring joy and satisfaction to our customers with every bite, offering a wide range of bakery products that cater to various tastes and dietary preferences. Our vision is to be the go-to bakery in San Francisco, known for our exceptional quality and customer service. We offer an extensive menu that includes artisan breads, pastries, cakes, cookies, and gluten-free options. Our unique selling proposition is our commitment to using only organic, locally-sourced ingredients and our dedication to traditional baking methods. Each product is handcrafted with love and care, ensuring a homemade taste that sets us apart from mass-produced bakery goods. Our target market includes food enthusiasts, families, and individuals who appreciate high-quality, fresh bakery products. We cater to their needs by providing a welcoming atmosphere and a diverse menu that includes options for various dietary requirements, including gluten-free and vegan choices. Our competitive advantage lies in our use of organic ingredients, our commitment to sustainability, and our exceptional customer service. We are known for our creative, beautifully decorated cakes and our ability to customize orders to meet the specific needs of our customers. Our management team comprises experienced bakers and passionate food lovers. Our head baker, Mary Johnson, has over 15 years of experience in the culinary arts and is renowned for her innovative recipes and artistic cake designs. Financially, we have seen steady growth, with a loyal customer base and a strong presence in the local community.

Example of Business Description for Clothing

Creating a compelling business description for a clothing company involves emphasizing your unique style, quality, and commitment to customer satisfaction. Here’s an example:

Chic Couture Chic Couture is a trendy clothing boutique based in New York City, specializing in contemporary women’s fashion. Our mission is to empower women through stylish, high-quality clothing that reflects their individuality and confidence. Our vision is to become a leading fashion destination for women who seek unique and sophisticated apparel. We offer a wide range of products including dresses, tops, bottoms, outerwear, and accessories. Our unique selling proposition is our commitment to curating exclusive collections that blend modern trends with timeless elegance. Each piece is carefully selected to ensure it meets our high standards of quality and style. Our target market includes fashion-forward women aged 18-35 who appreciate the latest trends and high-quality craftsmanship. We cater to their needs by offering an ever-evolving selection of stylish clothing that allows them to express their personal style. Our competitive advantage lies in our exclusive partnerships with emerging designers and our dedication to personalized customer service. We are recognized for our curated collections, exceptional quality, and the ability to offer unique pieces that are not available in mass-market stores. Our management team consists of experienced fashion industry professionals who are passionate about style and customer satisfaction. Our founder, Emma Blake, has over 20 years of experience in the fashion industry and has a keen eye for identifying the latest trends. Financially, Chic Couture has seen consistent growth, driven by a loyal customer base and strong online presence.

Example of Business Description for Coffee Shop

Crafting an engaging business description for a coffee shop involves highlighting the unique qualities of your coffee, the ambiance of your shop, and your commitment to customer satisfaction. Here’s an example:

Brewed Bliss Café Brewed Bliss Café is a cozy coffee shop located in the vibrant neighborhood of Brooklyn, New York. Our mission is to create a welcoming community space where coffee lovers can enjoy expertly brewed beverages and delicious, locally-sourced treats. Our vision is to become the neighborhood’s favorite spot for coffee, conversation, and relaxation. We offer a wide range of coffee beverages, including espresso, cappuccino, latte, cold brew, and specialty seasonal drinks. In addition, we serve a variety of pastries, sandwiches, and snacks made from organic, locally-sourced ingredients. Our unique selling proposition is our commitment to quality and sustainability, reflected in our use of fair-trade coffee beans and eco-friendly practices. Our target market includes local residents, students, professionals, and tourists who appreciate high-quality coffee and a warm, inviting atmosphere. We cater to their needs by providing free Wi-Fi, comfortable seating, and a selection of books and board games to enjoy while they sip their coffee. Our competitive advantage lies in our dedication to exceptional customer service and creating a unique, welcoming ambiance. We are known for our barista expertise, friendly staff, and the perfect blend of coffee and community. Our management team comprises experienced coffee enthusiasts and hospitality professionals. Our head barista, Alex Rodriguez, has over 10 years of experience in the coffee industry and is passionate about crafting the perfect cup of coffee. Financially, Brewed Bliss Café has experienced steady growth, supported by a loyal customer base and positive word-of-mouth.

Example of Business Description for Bakery

A compelling business description for a bakery should highlight the quality of your baked goods, the unique aspects of your bakery, and your commitment to customer satisfaction. Here’s an example:

Heavenly Delights Bakery Heavenly Delights Bakery is a family-owned bakery located in the heart of Chicago, dedicated to creating mouth-watering, freshly baked goods using the finest ingredients. Our mission is to bring joy to our customers with every bite, offering a wide range of artisanal baked products that cater to various tastes and dietary preferences. Our vision is to become the most beloved bakery in Chicago, known for our exceptional quality and friendly service. We offer an extensive menu that includes artisan breads, pastries, cakes, cookies, and gluten-free options. Our unique selling proposition is our commitment to using only organic, locally-sourced ingredients and our dedication to traditional baking methods. Each product is handcrafted with love and care, ensuring a homemade taste that sets us apart from mass-produced bakery goods. Our target market includes food enthusiasts, families, and individuals who appreciate high-quality, fresh bakery products. We cater to their needs by providing a welcoming atmosphere and a diverse menu that includes options for various dietary requirements, including gluten-free and vegan choices. Our competitive advantage lies in our use of organic ingredients, our commitment to sustainability, and our exceptional customer service. We are known for our creative, beautifully decorated cakes and our ability to customize orders to meet the specific needs of our customers. Our management team comprises experienced bakers and passionate food lovers. Our head baker, Mary Johnson, has over 15 years of experience in the culinary arts and is renowned for her innovative recipes and artistic cake designs. Financially, we have seen steady growth, with a loyal customer base and a strong presence in the local community.

Example of Business Description for Restaurant

Creating a compelling business description for a restaurant involves highlighting the unique aspects of your cuisine, ambiance, and commitment to customer satisfaction. Here’s an example:

Savory Haven Savory Haven is a gourmet restaurant located in the heart of downtown Los Angeles, dedicated to providing an exceptional dining experience through innovative cuisine and impeccable service. Our mission is to delight our guests with a fusion of flavors from around the world, prepared with the freshest, locally-sourced ingredients. Our vision is to be recognized as a culinary destination for food enthusiasts seeking a memorable dining experience. We offer a diverse menu that features a blend of international and contemporary dishes, including signature entrees, seasonal specials, and exquisite desserts. Our unique selling proposition is our commitment to culinary excellence and creativity, as well as our dedication to sustainability. We partner with local farmers and suppliers to ensure that our ingredients are of the highest quality and responsibly sourced. Our target market includes food enthusiasts, couples seeking a romantic dining experience, business professionals, and tourists looking for a remarkable meal. We cater to their needs by providing an elegant and inviting atmosphere, perfect for any occasion, whether it’s a casual lunch, a business meeting, or a special celebration. Our competitive advantage lies in our innovative menu, exceptional service, and luxurious ambiance. We are known for our chef’s signature dishes, attention to detail, and the ability to provide a personalized dining experience. Our wine list features a curated selection of fine wines from around the world, enhancing the dining experience. Our management team comprises experienced restaurateurs and culinary experts. Our executive chef, John Williams, has over 20 years of experience in the culinary industry and is renowned for his creative approach to international cuisine. Financially, Savory Haven has experienced steady growth, supported by a loyal customer base and rave reviews from food critics.

Example of Business Description for Jewelry

Creating a compelling business description for a jewelry business involves highlighting the quality of your products, the uniqueness of your designs, and your commitment to customer satisfaction. Here’s an example:

Eternal Elegance Jewelry Eternal Elegance Jewelry is a luxury jewelry boutique located in the heart of Manhattan, New York City, dedicated to crafting exquisite, timeless pieces that capture the essence of elegance and sophistication. Our mission is to provide our customers with high-quality, unique jewelry that celebrates life’s most precious moments. Our vision is to be the premier destination for discerning clients seeking extraordinary jewelry and exceptional service. We offer an extensive collection of jewelry, including engagement rings, wedding bands, necklaces, bracelets, and earrings. Our unique selling proposition is our commitment to craftsmanship and design excellence. Each piece is meticulously handcrafted by our skilled artisans using the finest materials, including ethically sourced diamonds and gemstones, and precious metals. Our target market includes individuals seeking luxury jewelry for special occasions, such as engagements, weddings, anniversaries, and other significant life events. We also cater to collectors and fashion-conscious clients who appreciate the artistry and quality of fine jewelry. Our competitive advantage lies in our exclusive designs, personalized service, and ethical sourcing practices. We are known for our bespoke jewelry services, allowing customers to create custom pieces that reflect their personal style and story. Our commitment to ethical sourcing ensures that our diamonds and gemstones are conflict-free and responsibly obtained. Our management team comprises experienced jewelry designers and industry professionals. Our founder and head designer, Sarah Thompson, has over 15 years of experience in the jewelry industry and is renowned for her innovative and timeless designs. Financially, Eternal Elegance Jewelry has seen consistent growth, supported by a loyal customer base and strong word-of-mouth recommendations.

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Importance of Business Description

A well-crafted business description is vital for any organization. It provides a clear and concise overview of the business, its objective , and its operational methods. Here are the key reasons why a business description is important:

1. Clarity and Focus

A business description helps define the mission and vision of the company. It articulates what the business does, its target audience, and its unique selling propositions. This clarity helps in maintaining a focused approach towards achieving business goals.

2. Attracting Investors

Investors need to understand the essence of a business before committing their resources. A comprehensive business description outlines the market needs the business addresses, its operational strategies, and its growth potential, making it easier to attract and convince potential investors.

3. Guiding Strategic Decisions

A detailed business description acts as a reference point for strategic decision-making. It provides insights into the company’s strengths, weaknesses, opportunities, and threats, guiding management in making informed decisions that align with the company’s core objectives.

4. Marketing and Branding

An effective business description enhances marketing and branding efforts. It communicates the company’s value proposition, helping to create a strong brand identity. This, in turn, attracts customers and differentiates the business from competitors.

5. Building Credibility

A well-written business description establishes credibility with stakeholders, including customers, employees, and partners. It showcases the business’s expertise, its commitment to quality, and its market position, fostering trust and confidence.

6. Legal and Regulatory Compliance

For legal and regulatory purposes, a business description is often required. It ensures that the business complies with industry standards and governmental regulations, providing necessary documentation for licensing and other legal formalities.

7. Employee Alignment and Engagement

A clear business description helps in aligning employees with the company’s mission and vision. It serves as a guide for the company culture, values, and expected behaviors, fostering a sense of purpose and engagement among the workforce.

8. Operational Efficiency

By detailing the business processes, products, and services, a business description helps streamline operations. It provides a blueprint for the business model, ensuring that all activities are aligned towards achieving the company’s goals efficiently.

Components of an Effective Business Description

An effective business description provides a comprehensive overview of a business, its operations, and its objectives. Here are the key components that make a business description effective:

1. Company Overview

• Business Name : Clearly state the official name of the business.
• Location : Provide the physical address and locations served.
• Nature of Business : Explain what the business does in simple terms.

2. Mission Statement

• Purpose : Describe the core purpose of the business.
• Vision : Outline the long-term goals and aspirations.
• Values : Highlight the principles and ethics guiding the business.

3. Products and Services

• Offerings : List the main products and services provided.
• Features and Benefits : Explain the key features and benefits of each offering.
• Unique Selling Proposition (USP) : Describe what makes the products/services unique.

4. Market Analysis

• Target Market : Identify the primary customers and market segments.
• Customer Needs : Explain the needs and problems the business addresses.
• Competitive Landscape : Provide an overview of main competitors and market position.

5. Business Model

• Revenue Streams : Describe how the business generates income.
• Pricing Strategy : Outline the pricing models used for products/services.
• Sales Channels : Mention the channels through which products/services are sold (e.g., online, retail).

6. Operational Plan

• Processes : Explain the key operational processes and workflows.
• Suppliers and Partners : Identify key suppliers and business partners.
• Technology and Equipment : Describe any significant technology or equipment used.

7. Management Team

• Key Personnel : Provide information about the leadership team and their roles.
• Experience and Expertise : Highlight the qualifications and experience of key team members.
• Organizational Structure : Explain the hierarchy and structure of the organization.

8. Financial Projections

• Income Statements : Include projected income statements showing expected revenue and expenses.
• Cash Flow Statements : Provide cash flow projections to show liquidity.
• Balance Sheets : Include projected balance sheets for financial health assessment.

9. SWOT Analysis

• Strengths : Identify internal strengths of the business.
• Weaknesses : Highlight internal weaknesses or areas for improvement.
• Opportunities : Describe external opportunities for growth and expansion.
• Threats : Outline potential external threats and risks.

10. Legal Structure and Compliance

• Business Structure : Specify the legal structure (e.g., LLC, corporation, sole proprietorship).
• Licenses and Permits : List necessary licenses and permits for operation.
• Regulatory Compliance : Ensure all regulatory requirements are met.

Common Mistakes to Avoid in Business Description

Creating an effective business description is crucial for communicating your company’s purpose and value. Avoiding common mistakes can ensure your description is clear, comprehensive, and compelling. Here are six common mistakes to avoid:

1. Lack of Clarity and Specificity

• Avoid Vague Language : Use clear and precise language to explain what your business does. Avoid using terms that are too broad or ambiguous.
• Skip the Jargon : Don’t use overly technical terms that might confuse readers. Instead, use simple language that anyone can understand.

2. Incomplete Information

• Include All Key Components : Make sure to cover all essential elements, such as your mission statement, products or services, market analysis, and financial projections.
• Provide Enough Detail : Offer enough information to give a complete picture of your business, but avoid overwhelming readers with too much detail.

3. Neglecting the Audience

• Know Your Audience : Tailor your business description to the needs and interests of your target audience, whether they are investors, customers, or partners.
• Highlight the Benefits : Focus on how your business meets the needs of your audience and the benefits they will gain from your products or services.

4. Lack of Differentiation

• Avoid Generic Statements : Don’t use generic statements that could apply to any business. Be specific about what makes your business unique.
• Define Your Unique Selling Proposition (USP) : Clearly explain what sets your business apart from competitors and why customers should choose you.

5. Ignoring Market and Competitive Analysis

• Include a Market Analysis : Provide an overview of your target market and customer needs. Show that you understand the market you are entering.
• Address Competitors : Mention your main competitors and explain how your business stands out from them.

6. Unrealistic Financial Projections

• Be Realistic : Provide financial projections that are based on credible data and realistic assumptions.
• Support Your Forecasts : Ensure your financial projections are backed by evidence, such as market research and historical data.

Tips for Writing a Compelling Business Description

A compelling business description can effectively communicate your business’s purpose, values, and uniqueness to potential customers, investors, and partners. Here are some essential tips for writing a captivating business description:

1. Be Clear and Concise

• Use Simple Language : Avoid jargon and overly technical terms. Ensure that anyone reading your description can easily understand what your business does.
• Keep It Short : Aim for brevity while covering all important points. A concise description is more likely to keep the reader’s attention.

2. Highlight Your Unique Selling Proposition (USP)

• Differentiate Your Business : Clearly state what sets your business apart from competitors. Focus on unique features, services, or aspects that make your business special.
• Focus on Benefits : Emphasize the benefits customers will receive by choosing your business over others.

3. Include Essential Information

• Business Name and Location : Start with the name of your business and its physical or online location.
• Products and Services : Provide a brief overview of what you offer, including key products or services.
• Mission and Vision : Articulate your business’s mission (what you aim to achieve) and vision (long-term goals).

4. Know Your Audience

• Tailor to Your Audience : Understand who will be reading your business description and tailor it to their interests and needs. Whether it’s potential customers, investors, or partners, make sure your description speaks directly to them.
• Address Their Needs : Highlight how your business solves specific problems or meets the needs of your target audience.

5. Provide a Market Context

• Market Overview : Briefly describe the market you operate in and your position within it.
• Competitive Edge : Explain why your business is well-suited to succeed in this market, mentioning any competitive advantages you have.

6. Use an Engaging Tone

• Write with Enthusiasm : Show passion and enthusiasm for what you do. An engaging tone can make your business description more appealing.
• Be Authentic : Authenticity helps build trust. Write in a way that genuinely reflects your business’s personality and values.

7. Include Relevant Keywords

• SEO-Friendly : Incorporate relevant keywords that potential customers might use to search for businesses like yours. This can help improve your visibility online.
• Natural Integration : Ensure that keywords fit naturally within the text and do not disrupt the flow of your description.

8. Update Regularly

• Keep It Current : Regularly review and update your business description to reflect any changes in your business, market conditions, or new offerings.
• Stay Relevant : Ensure that your description remains relevant and accurate as your business evolves.

How to write a good Business Description?

Writing a good business description involves clearly communicating your business’s purpose, value, and unique qualities. Here are six steps to help you craft a compelling business description:

1. Start with Basic Information

• Business Name and Location : Begin with your business name and where it is located.
• Nature of Business : Clearly state what your business does in a simple and direct manner.

2. Define Your Mission and Vision

• Mission Statement : Describe your business’s core purpose and primary objectives.
• Vision Statement : Outline your long-term goals and what you aim to achieve in the future.

3. Describe Your Products or Services

• Key Offerings : Provide a concise overview of your main products or services.
• Unique Features and Benefits : Highlight what makes your offerings unique and the benefits they provide to customers.

4. Identify Your Target Market

• Customer Segments : Describe the main customer groups your business serves.
• Market Needs : Explain the specific needs or problems your business addresses for these customers.

5. Highlight Your Competitive Advantage

• Unique Selling Proposition (USP) : Clearly state what sets your business apart from competitors.
• Market Position and Competitive Edge : Provide context on your business’s position within the market and why it stands out.

6. Introduce Your Management Team and Financial Highlights

• Key Personnel : Include brief profiles of your key team members, highlighting their experience and roles.
• Basic Financials and Growth Projections : Provide a snapshot of your financial health, such as revenue figures and future growth projections.

Why is a business description important?

A business description provides a clear overview of what your company does, helping attract customers, investors, and partners by conveying your value proposition and unique qualities.

What should a business description include?

It should include your business name, location, mission, vision, products/services, target market, competitive advantage, management team, and financial highlights.

How long should a business description be?

A business description should be concise, typically ranging from one to two paragraphs, but can be longer if needed to cover all essential aspects.

Who is the target audience for a business description?

The target audience includes potential customers, investors, partners, and stakeholders interested in understanding your business’s purpose and offerings.

How often should a business description be updated?

It should be reviewed and updated regularly, at least annually, or whenever significant changes occur in your business operations, offerings, or market conditions.

What makes a business description compelling?

Clear, concise language, a strong value proposition, unique selling points, and an engaging tone make a business description compelling and effective.

Can a business description improve SEO?

Yes, including relevant keywords and phrases naturally within your business description can help improve your online visibility and search engine ranking.

How do you highlight a competitive advantage in a business description?

Clearly state what sets your business apart from competitors, such as unique products, superior customer service, or innovative processes.

What common mistakes should be avoided in a business description?

Avoid vague language, excessive jargon, incomplete information, ignoring the target audience, and unrealistic claims in your business description.

How detailed should the financial highlights be in a business description?

Provide a brief snapshot of your financial health, such as revenue figures, growth rates, or funding received, to give a sense of stability and potential.

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How to write a company description for a business plan

Table of Contents

What is a company description?

What to include in your company description , where , company description example, tips for getting your company description right , stay on top of your new business finances with countingup.

A business plan is essential to setting your business up for success and determining what you want it to look like. One major part of that business plan is the company description. But if you’re unsure how to write a company description for a business plan, we can help.  

This guide will cover how to write a company description for a business plan, including: 

• What a company description is 
• What to include in your company description (with example)
• Tips for getting your company description right

The company description is part of your business plan outlining what your business does and why. It touches on your market and products or services. But it also explains what differentiates you from similar companies.

On top of this, it outlines your company’s mission and vision. Your mission statement specifies your business’s values, ethics, goals, and overall culture. Meanwhile, your vision statement defines where you want your business to go in the future. 

Your business plan will guide you as you start your business, but it’s also essential to gaining external funding. So, the stronger and clearer your company description, the more prepared you’ll look. It shows that you have a detailed understanding of what you do and how you’ll earn money. 

Knowing how to write a company description for a business plan requires some key elements, which we’ll outline below. We’ll also give a brief company description example.  

Start by outlining who you are, including the owner and business name. On top of this, include your business’s market and target audience . You can gain this important knowledge through market research , which will help you understand demand, competition, and your customer base. 

You’ll also need to explain where you’ll run your business. For example, you may explain where you’ll open a shop and why that location will be beneficial. If you plan to run the business from home, discuss how this will work. 

Next, outline the products or services, what problems they’ll solve, and the demand of that market. Aside from what you’ll sell, discuss your short, medium, and long term goals . Clear goals show how you see your business growing over time. Be sure to make these goals realistic and achievable, with ways to measure their success. 

Also, provide an estimated opening date for your business. Then, create a timeline for when you’ll reach profitability . In addition to this, discuss the timeframe for your goals. You may also need to touch upon an exit strategy, such as when you plan to retire or potentially sell. 

Your company description should also clearly describe why you want to start this business. What gave you this idea, and what is your main motivation? Why should customers buy from you? What will you be able to offer them that other businesses can’t? 

Finally, summarise how you’ll operate your business and achieve your goals. How will you structure your business ? This section is crucial for detailing your operations and how you’ll solve potential challenges. So, try to be specific here to show you’ll make your business happen. 

Molly’s Muffins, founded by classically trained baker Molly Smith, aims to redefine the baking market by creating delicious gluten-free and healthy muffins. The shop will cater to a gluten-free audience and target a younger to middle-aged health-conscious demographic. 

Molly’s Muffins will sell in a shop with a fitted kitchen in the higher-income Marchmont neighbourhood of Edinburgh city centre, United Kingdom. The business will serve a variety of gluten-free muffins baked daily in the shop, low in fats and sugars. 

In the short term, Molly Muffin’s aims to develop a loyal customer base in the area and beyond through social media marketing, paid advertising and a rewards program. The medium-term goals of the business include developing an online shop and catering service. In the long term, the business plans to open further locations. 

Molly’s Muffins will register as a limited company to prepare for future growth. With a Bachelors in Bakery and Patisserie science and five years of experience working in and managing a bakery, Molly Smith is prepared to turn her muffin-making passion into a profitable business. 

Molly’s Muffins will open its doors in April of 2022, with a timeline of ten months to reach profitability. The business aims to reach short term goals in three months, medium-term goals in a year, and long term goals in five years. 

Mission statement : Molly’s Muffins mission is to normalise and improve the reputation of gluten-free and healthy food products by making them delicious for all. It prioritises kindness, equality, and a healthy lifestyle.

Now that you know how to write a company description for a business plan, make it clear, detailed, and brief. If your plan is vague, it will be difficult to convince investors of. But, a description with too much detail will be difficult to get through. A clear and grammatically correct description will look more professional.

After writing your company description, be sure to check and update it regularly as it needs to  change with your growing business.

As you start your small business, you’ll need to organise your finances for success. But financial management can be stressful and time-consuming when you run your own business. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With the app’s many features, you can better stick to and achieve your business plan. For example, the app generates cash flow insights and year-round tax estimates to avoid surprises and track your performance.  

Plus, with automatic expense categorisation and the receipt capture tools, you can stay on top of how much you spend for your business. The app will label each transaction with HMRC approved categories. It will also remind you to snap a picture of your receipt when you make a purchase. This will help you stick to your budget and maintain your bookkeeping to work towards success and profitability. 

Start your three-month free trial today. 

Find out more here .

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How to write a business description that makes your business plan shine

Most successful businesses have one thing in common—they all have a buttoned-up business plan . It lays out the goals of the company, how a company will reach those goals, and when these goals will be realized. And while there are many sections of a business plan, a well-written business description is one of the most important parts.

However, some small business owners may not know how to write an effective business description. Luckily, there’s an easy formula to follow along with a few tips for writing an impactful business description.

What is a business description?

Also called a company description , your business description summarizes what your company does, its purpose, and what makes it unique. It’s a critical component of your business plan and immediately follows your executive summary . Since it’s one of the first pieces of information a reader will see, it must make a great first impression.

The goal of your business description is to inform readers—like lenders, investors, potential partners, and even employees—how your business benefits consumers and what place your business has in the market. Your business description should give readers a clear understanding of your business and its functions.

Why is a business description important?

A business description is important because it gives readers a single place to learn the details about your company. A well-crafted business description can intrigue readers and encourage them to read the rest of your business plan.

Investors or lenders will have one major thing on their minds—return on investment. They want to know if your business has the potential to be successful and whether it’s worthy of their investment dollars.

Your business description is your first opportunity to wow these investors or lenders and show them why your business will be profitable. It can pique their interest and push them to dig into the rest of your business plan .

What to include in a business description

An effective business description should include information that tells readers exactly what your company does, who is in charge of operations, and what will make your company successful. It should also tell readers what makes you different from competitors and why customers will come knocking at your door with their business.

Below, we’ve outlined every piece of information you should include in your business description . We’ve also created a hypothetical scenario for a hamburger restaurant and added a business description example for each step .

Business name

List the official name of your business as it’s registered with your state. Also include the names of the owner(s) and other key members of your management team .

Example: Jay’s Organic Burger Joint, owned and operated by Jacob Doe

Business goals

Detail the purpose of your business and what you’re aiming to achieve with your venture. These should be realistic short- and long-term goals.

Example: Jay’s aims to grow local brand awareness by 20% and forge partnerships with four additional local suppliers in the next year. The company also intends to expand operations to an additional location in the Chicago area and is seeking an investment of $200,000 in exchange for equity in the company.

Target customers

Have a thorough understanding of who your target market is. Explain who you’re selling to and why they will buy your product or service. Dig deeper into their needs and motivations so you can predict their purchase behaviors. Identifying the demographics of your target market, such as age group, income, and interests, can give you a competitive edge and attract loyal customers.

Example: Jay’s understands that its customers are health-conscious but have busy lives with little time for preparing healthy meals.

Competitive advantages

Describe what makes your business unique from your competitors. Readers should understand why your company will succeed and make you a front-runner in the market.

Example: Unlike its competitors, the restaurant alleviates the target audience’ s pain points by providing quick and easy meals that are also healthy for the entire family.

Business location and opening date

Include where your company is headquartered and where you will be conducting business. Also, share when you opened your business or when you plan on opening if you haven’t already.

Example: Jay’s Organic Burger Joint is headquartered in Chicago, Illinois and opened operations in April 2019.

Mission statement

Your mission statement tells readers why your business exists. It should highlight the motivations for starting your business and summarize your product or service, target consumers, and why you’re unique.

Example: Jay’s Organic Burger Joint is a fast-casual restaurant that serves the highest quality hamburgers to hungry and health-conscious customers in Chicago, Illinois.

Products or services

Highlight what products or services you’re offering customers. Also, discuss the benefits your products or services provide and what makes them different from competitors.

Example: The menu focuses on healthy meals using only organic ingredients and grass-fed beef.

Business structure

List what type of business you’re operating. For example, this could be a sole proprietorship , partnership, limited liability company (LLC), or another type of corporation.

Example: The business is a limited liability company owned by Jacob Doe.

Once you’ve included all of these details in your business description , it should look something like this:

Jay’s Organic Burger Joint is a fast-casual restaurant that serves the highest quality hamburgers to hungry and health-conscious customers in Chicago, Illinois. Jay’s understands that its customers are health-conscious but have busy lives with little time for preparing healthy meals.

Unlike its competitors, the restaurant alleviates target customers’ pain points by providing quick and easy meals that are also healthy for the entire family. Jay’s uses local ingredients sourced from farmers in the greater Chicago area. The menu focuses on healthy meals using only organic ingredients and grass-fed beef.

The business is a limited liability company owned by Jacob Doe. Jay’s Organic Burger Joint is headquartered in Chicago, Illinois, and opened operations in April of 2019.

Jay’s aims to grow local brand awareness by 20% and forge partnerships with four additional local suppliers in the next year. The company also intends to expand operations to an additional location in the Chicago area and is seeking an investment of $200,000 in exchange for equity in the company.

Learn how to reach new customers, cultivate customer loyalty, and elevate your brand with this guide on online marketing for small business .

How to write a business description

Not all business descriptions are made the same. There are a few tips to consider if you want your business description to stand out and wow your readers.

Have an elevator pitch

Your business description should kick off with an elevator pitch . An elevator pitch is typically spoken, but it helps to quickly summarize your company at the start of your business description. This pitch quickly covers the key aspects of your business and should be brief and persuasive. You should get straight to the point and immediately give readers your value proposition.

For example, Jay’s Organic Burger Joint could write something like “We serve the highest quality hamburgers and provide a convenient alternative for health-conscious customers who are always on the go.”

Keep it high level

Although you want your business description to be informative, you want to limit the amount of information you include in this section of your business plan. Keep it high-level and avoid going into too much detail. The subsequent sections of your business plan will cover the finer details. Remember, the goal is to give just enough information to entice readers to go through the rest of your business plan .

Show your excitement

This is your opportunity to show your excitement and give your business plan a human touch. Your business plan isn’t only selling your product or service to investors—it’s also selling you. Let your passion shine through as you explain why you started the company and what you aim to achieve.

Keep it short and concise

It can be easy to get carried away and make your business description too long. Avoid being too wordy, which can overwhelm the reader.

Business descriptions should only be a few paragraphs long for most types of companies. Remember, you’re trying to intrigue the reader and encourage them to read the rest of your business plan . If it’s too long, you’ll lose the reader’s attention.

Proofread for errors

Grammatical errors and misspellings can tarnish your company description . Even if you include all the right information, you won’t impress readers if it’s riddled with errors.

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Engage readers with your business description

A fine-tuned business description will kick off your business plan on a high note. Whether you’re launching a startup or already have your business up and running, knowing how to write a business description will provide a high-level overview of your company and can help you secure investment dollars from potential investors or lenders .