company description on business plan

Call Us (877) 968-7147

Most popular blog categories

• Accounting Tips
• Payroll Tips
• Accountant Professionals Tips

How to Write a Company Description for a Business Plan

Nobody does what you do better than you, but … what is it that you do again? You might have trouble describing your business in one sentence or find yourself at a loss for words when writing a company description. Knowing how to write a company description for a business plan helps you communicate with lenders, investors, employees, and potential customers.

How to write a company description for a business plan

You put a lot of thought into your original business concept. Now you need to know how to succinctly describe your business.

Where better to describe your business than in the company description business plan?

What is a business plan?

A company description is just one part of your small business plan . The business plan outlines your goals and how to achieve them.

According to the Small Business Administration , a successful business plan should include the following:

• Executive summary
• Company description (Bingo)
• Small business market analysis
• Organization and management details
• Service or product information
• Marketing and sales overview
• Funding request
• Financial projections

Another thing to note about business plans is that you can’t write one and be done. Your business is always changing. And that means your business plan is always changing, too. Be sure to update it regularly.

What is a business description?

A company description provides an overview of key aspects of your business, like what you do and what makes your business unique. Anyone reading your business description should have no problem understanding the scope of your business.

Lenders and investors should see how your business has a place in the market, as well as its benefits to future customers.

Your business’s mission statement is the part of your company description that you want the public to see. And, you should include your vision statement, too.

Regularly update your company description as your business expands or changes.

Writing your company description

You need to know how to pitch to investors and lenders to captivate their interest. Your description should answer who, what, where, when, why, and how right off the bat.

So, do you know how to write a business description? We’ll walk you through the 5 W’s (and 1 H) to consider when drafting your first copy.

Who are you? Who is your business? Verify that the name of your business is clear in the business description section of your business plan. And, include your name (and the names of any other owners) because lenders and investors want to know the entrepreneur behind the business.

Who is your target customer? Who are you selling to? When describing your business, make sure you know who you appeal to. If you don’t know your target customer, there’s a chance that nobody will be interested in your business.

What is your product or service? If lenders and investors can’t understand what you’re selling or how it’s significant, they may pass on your concept. Be clear, narrow, and focused when telling lenders and investors about your business.

What are your goals for your business? Set realistic short-term and long-term goals. For example, if you plan on selling $20,000 worth of products by the end of the second month, include the goal in your description.

Where is your business located? If you are currently operating your business, list the address. Likewise, make sure you state where you want your business to be if you are still looking for office space.

When will you implement your business plan and see results? Include when you want to open your business (or when you opened it).

When do you plan on achieving your goals? Also, talk about the timeline for your main goals (both short-term and long-term).

When do you think you’ll leave your business? Don’t forget to discuss your exit strategy . Whether you plan on retiring in 20 years, selling your company in 15 years, or closing it down in 10 years, be clear about when you plan on parting ways.

Why would potential customers want to buy from you? Explain why you are different from the competition. This is where you can describe your business’s originality. Lenders and investors want to know why consumers would want to make a purchase at your small business instead of a competitor’s.

Why are you in business? Also make sure you include your business’s mission statement . A mission statement defines why you’re in business and what your goals are.

How are you going to structure your business? Which business structure will you form: sole proprietorship, LLC, partnership, or corporation? Explain your structure decision, too. Mention any small business advisor (e.g., business attorney) you work with to help with registration requirements, regulations, and liabilities.

How are you going to achieve the goals you set for your business? Are you going to hire employees to help you, or will you handle all responsibilities on your own? Talk about what steps you’ll take to reach the goals you outline.

How do you picture your company in the future? Include your business’s vision statement in your company description. A vision statement is an internal description that states what you want your business to look like in the future.

Business description example

Still unsure? Take a look at this business description example for more information:

Ann’s Office Hut delivers office supplies to small businesses in Boston, Massachusetts. The business is structured as a sole proprietorship, operating under entrepreneur Ann Smith. Ann’s Office Hut is located in Boston, Massachusetts and will begin operations in February. Ann’s Office Hut recognizes the busy lives of small business owners and wants to bring essential items like printers, cash registers, paper, ink, and envelopes to their doorsteps. Ann’s Office Hut will conveniently provide office supplies to small business owners who are short on time. Other office supply stores cannot match the convenience Ann’s Office Hut will give.

The business hopes to have gross sales of $30,000 by the end of one year and $95,000 by the end of five years. To achieve this goal, Ann’s Office Hut plans on offering referral credit.

Company description business plan: Final tips

Writing the business description portion of your business plan should be fun … even though it may feel more like a chore. But, this is your opportunity to talk about your business idea and get other people (i.e., lenders and investors) on board.

Here are a few final tips to keep in mind when learning how to write a company description:

• Answer the 5 W’s and 1 H
• Keep it short, simple, and easy to read
• Proofread, proofread, proofread
• Determine whether it’s interesting

This article has been updated from its original publication date of December 9, 2016. 

This is not intended as legal advice; for more information, please click here.

Get the latest small business news delivered straight to your inbox!

You may also be interested in:

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write a Company Overview for a Business Plan

Page Grossman is a freelance writer.

Sally Lauckner is an editor on NerdWallet's small-business team. She has over 15 years of experience in print and online journalism. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content and specializing in business financing. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She is based in New York City.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

When you start a company, you ideally want it to grow. If you’re seeking business funding to scale your business or an initial investment to get your business off the ground, you’re going to need a business plan . Putting together a business plan can be an intimidating process that involves a lot of steps and writing — but breaking it down piece by piece can help you accomplish this seemingly insurmountable task.

One small piece of your business plan is the company overview, so let’s take a look at what that is, exactly, check out some company overview examples and go over how to make a company overview of your very own.

ZenBusiness

What is a company overview?

A company overview provides the reader of your business plan with basic background information about your company so they have an understanding of what you do, who the management team is and what customers your business serves.

The company description is the second piece of a business plan, falling right after the executive summary. Similar to the executive summary, your company overview will be short and succinct. Your reader needs to have a grasp on what your business does and who your customers are, even if they have limited time.

Why do I need a company overview?

The company overview is the part of your business plan that gives the basics and background of your business. It’s the foundation on which you will build the rest of your business plan.

If you’re looking to appeal to investors or potential clients, you need a reader to make an informed decision about your company. Before they can do that, they must know what your company does and who your customer is. Lenders in particular need a reason to keep reading, since they see tons of business plans regularly. The company overview provides those answers, and it will help you get a better sense of your business so you can firm up things like your marketing plan.

Compare cards

How much do you need.

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

What should I include in a company overview?

The exact elements that you need in your company overview will depend upon what details of your business are important, but there are some foundational elements that will be included in every company overview.

Once you’ve covered the basics, you can include any other minor details that will benefit a reader who will need to make an informed decision about your business.

Basic company information

Consider the company overview like an introduction for your business. In the opening paragraph of your company overview, you’ll want to include basic company information. That includes:

Your company name: This should be the official name of your business, exactly as it is written when you registered your business with the state.

Business structure: Your reader will want to know what business entity your company comes in: sole proprietorship, LLC, partnership or corporation.

Location(s): Share where your business is headquartered and other locations the business owns.

Ownership and management team

Break down who owns your business and how each owner is involved with the business. What shares of the company belong to whom? If you have a highly involved management team, share their names and key roles with the company as well.

Company history

Part of what makes your company unique is its history. And, even startups have some history. Don’t put too much focus on this section, but do add some personality and interesting details if possible, especially if they relate to your company culture.

Mission statement

Your company’s mission statement should be included in the company overview. If you don’t yet have a company mission statement, that’s okay. Think of a mission statement as the purpose of your company.

If you don’t have one, you can create one with your team. Or you can simply replace the mission statement with a problem statement. Your business idea should exist to solve a problem or pain point faced by your customers. Share what that problem is and what your business does to solve it. That’s essentially your mission statement.

Product/service and customer

This section of the company overview is where you can share the nitty-gritty details of your business. Talk about what product or service you provide and to whom you provide it. You can share some numbers here, but in general, save the numbers for later in your business plan.

The company overview should give the reader a general understanding of your business, your product or service, and your customer. If they’re interested to know more, they’ll reach out to you for a meeting or take the time to read the rest of your business plan. Keep it simple and straightforward here.

Future goals

While concrete details and facts about your business are important to whoever is reading your company overview, it’s also important to share your dreams and your vision. If you’re writing a business plan for a business that’s already in place, it’s very likely you’re looking for business financing to scale or solve a business problem. If you’re just starting out, though, then it’s likely you’re hoping to find startup funding.

The section on your future business goals should include a brief description of your growth goals for your business. Where you are now tells the reader a lot, but they also want to know where you plan to go.

A company overview is comprised of many small parts. Each part shares just a little bit more about your company with your reader.

Tips for writing a company overview

While a company overview is simply the details of your company written out, it might not be easy to write. Break it down into small steps and use these tips to make putting together your company overview just a little bit easier.

Start with the elevator pitch

If your business is already in operation, then you likely have an elevator pitch. Your company overview can start off with your elevator pitch.

The first paragraph of your company overview should include just a few sentences that explain your business and what you do. The shorter and clearer this is, the more likely your reader will understand and keep reading.

Stick to the basics

It’s tempting to pile on all the details when you’re writing a company overview. Remember, many of the details of your company, including the numbers, will be included in later sections of your business plan.

Your company overview should include only the most basic details about your company that the reader needs to know.

Be passionate

When you share the history, mission statement, and vision for the future of your company, it’s okay to show your passion. You wouldn’t be in business if you didn’t love what you do.

Your excitement for your business could spark interest for the reader and keep them engaged with your company overview and business plan.

Keep it succinct

When you’re passionate about something, it’s easy to get carried away. Remember that you’ve got plenty of space for details in your business plan. The company overview should be just the most basic information someone needs to understand your business.

It’s OK if your first draft of your company overview is long. Simply go through and edit it to be shorter, removing unnecessary details and words each time you read through it. Clear, concise descriptions are more likely to be read and to keep the reader reading to other sections of your business plan.

Have structure

Your company overview is just one piece of a multi-tiered business plan. Creating a clear structure for your business plan makes it easier to read. The same is true for your company overview.

Your business plan should have chapters, one of which is the company overview. Then, you can further break down the content for easy skimming and reading by adding sub-chapters. You can denote these breaks in content with bold headers.

While you can break down each section of the company overview with bold headers based on the above suggestions, you can also interweave some information together, such as the company structure and leadership structure. Each section should be only a few sentences long.

Write it later

If you’re struggling to write your company overview, come back to it. Write the rest of your business plan first and then write your company overview.

While this might seem like the opposite way of doing things, knowing what will be contained in the rest of your business plan can help you to focus in on the very most essential details in the company overview and to leave everything else out.

Get a test reader

If you’re struggling to edit down your company overview, get a test reader. Ideally, you’ll want to ask someone who doesn’t know a lot about your business. They’ll help you understand whether or not you’ve clearly communicated your message.

Proofreading is the final step in editing something you’ve written. This type of editing looks for typos, misspellings and grammatical errors that have been missed. Many of these small errors can be difficult to spot in our own writing, so be sure to ask someone who hasn’t seen multiple drafts of your company overview.

Start Your Dream Business

Company overview examples

If you don’t want to shell out for business planning software, but would still like some company overview examples to get you started, there are many places online you can look to for help getting started, like the Small Business Administration and SCORE.

Many successful companies also have some version of their company overview made public as their company profile page online. There are some variations from the company overview steps we’ve listed above, of course, but you can use the language and style of these company overview examples for inspiration:

Starbucks company profile .

Puma company page .

TaskRabbit About page .

Peloton company page .

Nestlé About page .

If you’re still feeling stuck, or want more company overview examples, try searching the websites of your favorite companies for more information. You might be surprised what you find — the Nestlé page, for example, has more information about their strategy and business principles.

On a similar note...

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 .

• Counting Up on Facebook
• Counting Up on Twitter
• Counting Up on LinkedIn

Related Resources

Business insurance from superscript.

We’re partnered with insurance experts, Superscript to provide you with small business insurance.

How to register a company in the UK

There are over five million companies registered in the UK and 500,000 new

How to set up a TikTok shop (2024)

TikTok can be an excellent platform for growing a business, big or small.

Best Side Hustle Ideas To Make Extra Money In 2024 (UK Edition)

Looking to start a new career? Or maybe you’re looking to embrace your

How to throw a launch party for a new business

So your business is all set up, what next? A launch party can

How to set sales goals

Want to make manageable and achievable sales goals for your business? Find out

10 key tips to starting a business in the UK

10 things you need to know before starting a business in the UK

How to set up your business: Sole trader or limited company

If you’ve just started a business, you’ll likely be faced with the early

How to register as a sole trader

Running a small business and considering whether to register as a sole trader? 

How to open a Barclays business account

When starting a new business, one of the first things you need to

6 examples of objectives for a small business plan

Your new company’s business plan is a crucial part of your success, as

How to start a successful business during a recession

Starting a business during a recession may sound like madness, but some big

• Search Search Please fill out this field.
• Building Your Business
• Becoming an Owner
• Business Plans

How to Write a Company Description

Alyssa Gregory is an entrepreneur, writer, and marketer with 20 years of experience in the business world. She is the founder of the Small Business Bonfire, a community for entrepreneurs, and has authored more than 2,500 articles for The Balance and other popular small business websites.

What Is a Company Description?

Parts of a company description, how to write your company description, example company description, the bottom line on writing a company description, frequently asked questions (faqs).

The company description of your business plan describes the vision and direction of the company so potential lenders and partners can develop an accurate impression of who you are. A good company description should succinctly outline key details while conveying your passion for the mission.

Here's what you need to know to write an effective company description for your small business.

Key Takeaways

• A company description is an overview of the company's plan, vision, and relationships.
• These documents typically include the company's name, business structure, mission statement, and an overview of the target market.
• A good company description is clear and concise. You can leave out details that your business plan covers elsewhere.

The company description section of your business plan is typically the second section, coming after the executive summary . The company description outlines vital details about your company, such as where you are located, how large the company is, what you do, and what you hope to accomplish.

The exact elements included in your company description can vary, but some elements are more common than others and most likely should be part of the section:

• Company name : The official name of your business as registered in the state where you do business
• Type of business structure : Sole proprietorship, LLC, partnership, or corporation
• Ownership/ management team : Names of the key people behind the company
• Location : Where is the company headquartered?
• Company history : When was the business started? What inspired you to start the business? What need does your company fulfill?
• Mission statement : A clear statement that represents the purpose of your company
• Products/services and target market : A brief overview of what you plan to sell and to whom
• Objectives : An outline of what you want to accomplish in the immediate future based on the data in the rest of the business plan as well as future growth goals
• Vision statement : A statement about how you envision the future of the company

Once you've organized the key information that you want to include, you need to write the section in a way that will be appealing to readers. Follow five steps to help create a successful company description.

1. Start With an Elevator Pitch

Begin the company description section with a paragraph that captures all of the vital information about your company. Imagine you are giving an elevator pitch about your company and want to express the key characteristics in just a few sentences. Use the same thought process for your introductory paragraph.

2. Stick With High-Level Information

Some of the information in your company description will be included in other sections of your business plan. For these parts, provide only a high-level overview and leave all of the specific details for the related section.

3. Show Your Passion

Let your passion and excitement show in the company description section as you explain why you started the company and what you hope to accomplish. Your excitement should show in the tone of your writing, and your aim should be to get the reader interested in reading the rest of the business plan.

4. Do a Length Check

When you're writing about the passion and excitement that led you to start your company, it can be easy to get carried away and use more words than necessary to get your point across. Once you've drafted your company description, go back and cut out any unnecessary parts or redundant information to make it clear and concise.

5. Have It Proofread

Ask someone who hasn't seen various drafts of the company description to review it for typos, grammatical errors, or flow problems that could hurt the impact it has on the reader.

Below is a sample company description, pulled from Target's annual report.

Target Corporation (Target, the Corporation, or the Company) was incorporated in Minnesota in 1902. Our corporate purpose is to help all families discover the joy of everyday life. We offer to our customers, referred to as "guests," everyday essentials and fashionable, differentiated merchandise at discounted prices. We operate as a single segment designed to enable guests to purchase products seamlessly in stores or through our digital channels. Since 1946, we have given 5 percent of our profit to communities.

The company description is a crucial part of any business plan. You should use it to highlight key details about your company. Writing a good company description for your small business starts with a solid elevator pitch. A general overview of your vision and goals should be supplemented with details about exactly what your company does, where it is located, how it is structured, and other information along these lines.

What should I write in a company description?

Your company description should include all of the basic details about your company. You don't need to go into granular detail in a company description, but you should give an overview of what you do, how your company is structured , and the vision you have for the future.

What is a company summary?

" Company summary " is another way to refer to a company description. The terms can be used interchangeably.

Clute Institute. " Using Business Plans for Teaching Entrepreneurship ," Page 734.

Small Business Administration. " Write Your Business Plan ."

Office of the Comptroller of the Currency. " Business Plan Guidelines ," Page 2.

Target Corporation. " Form 10-K ."

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

Key takeaways

• A business description is a high-level overview of your company that you include in your business plan
• Your business description should entice readers—like lenders and investors—to look through the rest of your business plan to learn more about your company
• Business descriptions should be concise, error-free, and include only pertinent information about your company

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.

Promote your new business

Get a free Yelp Page to help local consumers find you.

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 .

The information above is provided for educational and informational purposes only. It is not intended to be a substitute for professional advice and may not be suitable for your circumstances. Unless stated otherwise, references to third-party links, services, or products do not constitute endorsement by Yelp.

Related stories

How to register your business: a beginner’s guide

When starting a new business, a key question is how to register your business. With this guide, you’ll learn about the steps to take before registering plus the actual registration process.

How to write an effective cleaning services business plan

Discover six key sections you need to include in your cleaning services business plan to set up your cleaning company for success.

Lead generation ideas for small business owners

Use these four lead generation strategies to get contact information for customers most likely to buy from you, then follow up to make the sale.

How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

Featured Partners

ZenBusiness

$0 + State Fees

Varies By State & Package

On ZenBusiness' Website

On LegalZoom's Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's Website

$0 + State Fee

On Formations' Website

Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

• Best VPN Services
• Best Project Management Software
• Best Web Hosting Services
• Best Antivirus Software
• Best LLC Services
• Best POS Systems
• Best Business VOIP Services
• Best Credit Card Processing Companies
• Best CRM Software for Small Business
• Best Fleet Management Software
• Best Business Credit Cards
• Best Business Loans
• Best Business Software
• Best Business Apps
• Best Free Software For Business
• How to Start a Business
• How To Make A Small Business Website
• How To Trademark A Name
• What Is An LLC?
• How To Set Up An LLC In 7 Steps
• What is Project Management?

Best West Virginia Registered Agent Services Of 2024

Best Vermont Registered Agent Services Of 2024

Best Rhode Island Registered Agent Services Of 2024

Best Wisconsin Registered Agent Services Of 2024

Best South Dakota Registered Agent Services Of 2024

B2B Marketing In 2024: The Ultimate Guide

Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Small Business Trends

How to create a business plan: examples & free template.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Table of Contents

How to Write a Business Plan

Executive summary.

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Overview and Business Objectives

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Company Description

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Define Your Target Market

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

Competitive analysis.

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

Organization and Management Team

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Marketing and sales strategy.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Logistics and Operations Plan

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Cash Flow Statement

Tips on Writing a Business Plan

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

What is a Business Plan?

Why you should write a business plan, what are the different types of business plans.

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

Using Business Plan Software

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

Business Plan FAQs

What is a good business plan, what are the 3 main purposes of a business plan, can i write a business plan by myself.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

How long should a business plan be, what is a business plan outline, what are the 5 most common business plan mistakes, what questions should be asked in a business plan.

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

How is business planning for a nonprofit different.

How to Expertly Write the Company Description in Your Business Plan

Written by Dave Lavinsky

A key section of your business plan is the one in which you describe your company. This section comes second in your business plan, after the Executive Summary .

The Company Analysis section of your business plan has three main goals:

• to give a brief description and profile of your company
• to detail your past accomplishments
• to specify your unique qualifications.

Note that a detailed description of your products/services generally does not belong in your company section; rather that will go in the Products/Services section of your marketing plan.

Here’s what to include in your business plan company overview:

1. Company Profile

Start with a detailed profile of your company including your:

• Date of formation
• Legal structure (LLC vs. C-Corp., etc.)
• Office location(s)
• Business stage (start-up vs. undergoing R&D vs. serving customers, etc.)
• Type of business: this is where you’ll give a general description of the type of business (e.g., restaurant, software, etc.) you operate

2. Past Accomplishments

Include a chart (or bullets) of your company’s past accomplishments, including descriptions and dates when:

• Prior funding rounds were received
• Products and services were launched
• Revenue milestones were reached (e.g., date when sales surpassed the million dollar mark)
• Key partnerships were executed
• Key customer contracts were secured
• Key employees were hired

This information is critical to investors as it indicates the company’s ability to execute upon a previous game plan. Attaining milestones is an excellent indicator for potential investors that their money will be used to create value and lead to a liquidity event.

3. Unique Qualifications

Finally, detail why your company is uniquely qualified to succeed.

This is often referred to as the company’s “unfair competitive advantage.”

This advantage could include one or more of the following:

• a world-class management team
• proprietary technology
• proven operational systems
• key partnerships
• long-term contracts with major customers
• other successes-to-date

To learn how to expertly complete the other sections of your business plan, reference the best business plan template .  

Other Resources for Writing Your Business Plan

• How to Write an Executive Summary
• How to Write the Market Analysis Section of a Business Plan
• The Customer Analysis Section of Your Business Plan
• Completing the Competitive Analysis Section of Your Business Plan
• The Management Team Section of Your Business Plan
• Financial Assumptions and Your Business Plan
• How to Create Financial Projections for Your Business Plan
• Everything You Need to Know about the Business Plan Appendix
• Business Plan Conclusion: Summary & Recap

Other Helpful Business Plan Articles & Templates

How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

Free business plan template

Download a free SBA-approved business plan template built for small businesses and startups.

Download Template

One-page plan template

Download a free one-page plan template to write a useful business plan in as little as 30-minutes.

Sample business plan library

Explore over 500 real-world business plan examples from a wide variety of industries.

View Sample Plans

How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

Related Articles

3 Min. Read

What to Include in Your Business Plan Appendix

1 Min. Read

How to Calculate Return on Investment (ROI)

5 Min. Read

How To Write a Business Plan for a Life Coaching Business + Free Example

7 Min. Read

How to Write a Bakery Business Plan + Sample

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Find the best business loan rates (2024)

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.

• About the Author
• Latest Posts

Why Is the Federal Reserve Raising Interest Rates (and What to Expect)?

When Are Small Business Taxes Due?

48 Ecommerce Statistics to Know This Year

13 Best Industries to Invest in for 2024

On a similar note..., you may also like..., explore our most popular tools.

You’re subscribed!

• Design for Business
• Most Recent
• Presentations
• Infographics
• Data Visualizations
• Forms and Surveys
• Video & Animation
• Case Studies
• Digital Marketing
• Design Inspiration
• Visual Thinking
• Product Updates
• Visme Webinars
• Artificial Intelligence

A Quick Guide to How to Write a Company Overview for Your Business Plan

Written by: Unenabasi Ekeruke

If you're planning to start a new business, the one key task on your to-do list should be to create a business plan. Studies have shown that 71% of fast-growing companies credit their success to having a written business plan.

Writing a solid company overview that describes your organization and where you're headed is equally important to win investors' confidence and secure their buy-in,

A company overview gives readers a general idea of your company, product or service and target market by describing your organization and plans. With this information, prospects can make informed decisions about whether or not to partner, invest in or work with your company.

In this article, we'll explore what is a company overview and how to write one for your business. We’ve included insights, tips and ready-made templates to get you started.

Table of Contents

What is a company overview, the importance of a company overview, what to include in a company overview, how to write a company overview.

• Company Overview Templates
• The company overview is part of a business plan that gives a general description of your company.
• It typically includes a company description and its history, legal structure, mission statement, target market, team members, etc.
• The company overview provides a strategic roadmap for your business, establishes a positive first impression about your company, attracts investors attention and persuades them to continue reading.
• Visme has a vast library of templates for creating winning business plans,  presentations, proposals and other business documents.
• Take advantage of  Visme's extensive library of templates, user-friendly editor, data visualizations and design assets to build impressive presentations swiftly and launch your business with style.

A company overview, or business overview, is an informative part of the business plan that provides a snapshot of your company's background and establishes its identity.

It provides a general overview of your company, its products or services and its customers. A business overview helps to introduce and spark the attention of investors, potential partners, clients and other stakeholders by succinctly presenting this crucial information.

It appears right after the executive summary in the business plan. Even though it is the document's shortest chapter, you can't ignore its significance. We’ll look at its importance in the next section.

Your company overview is one of the most crucial elements of your business plan. How you craft this section can make or break your entire business plan.

After all, it is the entry point to grab your readers' and stakeholders' interest. Failing to impress them at this stage might result in missed opportunities you would have otherwise won.

Let's provide more reasons why you should invest your time in making the company overview.

1. Establishes a Positive First Impression

Studies show that you only have a few seconds to make a solid first impression.

The situation is even more critical when presenting your business plan to someone unfamiliar with your organization.

Imagine if the reader had no prior knowledge about your business. What would they be able to glean from your business plan or company overview? What should people remember most about you and your business?

This is where the company overview shines. It can shape readers' initial perceptions and induce them to continue reading.

So by drafting an engaging business overview, you lay the cornerstone for building trust and curiosity. The result? It'll compel the audience to read on and discover your offer's value.

Moreover, using tools like Visme to create charts , graphs , plans , reports and infographics can help you quickly grab your reader’s eyeballs.

2. Helps To Attract Investors

If your business is in the growth or expansion phase, securing funding from potential investors becomes your priority.

Investors show interest in businesses with a clear vision, sound business plan and realistic financial projections.

But they come across numerous opportunities daily and have limited time to evaluate each. So to differentiate your business, you need to present a business overview beyond simply stating the obvious.

You must provide potential investors with information like your USP, market growth and competitive advantages. All this information will help investors assess the viability and attractiveness of your business.

3. Provides a Strategic Roadmap

A meticulous goal-driven plan is the best course of action for any company looking to succeed over the long run.

And to help you achieve those goals, the company overview acts as a strategic road map. That’s because it provides details about your company's vision, values and purpose.

By analyzing the company's operations, goals and strategies, the overview can provide insights into areas that may be vulnerable to risks and areas with the potential for growth and improvement.

The content of your company overview can vary depending on your company's specifics, mode of operation and purpose of the business plan.

But there are certain fundamental elements you should include in your company overview:

Let’s check them out.

Made with Visme Infographic Maker

1. Company Description:

Treat the “About company” section as your elevator pitch. It should provide an in-depth overview of your business. When writing this section, consider including the following pointers:

• The purpose and nature of your company,
• Highlight what sets it apart from competitors,
• Share the guiding principles of your company.

In addition, draw attention to any distinct features of your business, such as creative procedures, in-house developed technology, or unique corporate culture.

Depending on the intricacy of the business plan, a company description's length might vary, but it should always be precise and short. It should typically include 3-4 sentences.

Use the template below to showcase a digestible version of your business overview.

2. Team Members, CEO and Partners

Write a quick introduction for the members of your management team, including their names, roles and backgrounds. Emphasize their industry knowledge, accomplishments (if any) and related experience.

The Meet Our Team page shouldn't just be about the team growing your business and the value and expertise they bring to the table. It should help your audience and stakeholders get familiar with your team.

After writing about the team members, give specific information on the company's founder or CEO.

Outline their mission, vision, values, leadership style and significant contributions to the company. Draw attention to their track record of achievement, prominence in the business or any other unique and notable characteristics

3. Legal Structure

Determine your firm's legal structure, including whether it is a corporation, limited liability company (LLC) , partnership, joint venture, or sole proprietorship. This information makes your company's legal structure and ownership structure clear.

It should also contain details regarding the business's ownership structure, such as the names of the shareholders and the percentages of the company they own.

4. Company History

Describe your company's history, beginning with its inception and moving forward. Mention the date of establishment, the members involved and pivotal moments that have shaped your company.

Talk about any noteworthy accomplishments, industry accolades and growth milestones that show the progress and resiliency of your organization.

5. Mission Statement

The mission statement section should summarize your company's purpose (main motive) and core objectives.

When writing this section, show how your company's values align with those of your potential target audience. Describe the fundamental beliefs and principles that guide your company's activities and decision making.

6. Target Market

Analyze your target market, including your ideal customers' demographic and psychographic profiles. While writing about this element, consider including the following:

• personality traits,
• geographic location,
• size of the target market,
• changes/trends in the market

When writing this section, mention the industry and your target market in which they operate.

And if you’re pivoting or starting a new business in another industry or targeting a new market within the same industry, you should mention it in the company overview.

Detailed information about your target market shows you've done your homework and understand your market like the back of your hand.

This can boost investors' confidence in your business.

7. Product or Service

Give a detailed explanation of your products or services, highlighting their features, benefits and unique characteristics. Show how your products or services address customer problems/pain points or meet their desires.

Highlight any technology breakthroughs, quality certifications, or design characteristics that set your offerings apart. Share notable client success stories, feedback, or case studies demonstrating the worth of your offerings and clients' satisfaction.

8. Objective and Goals

Define your company's short and long term objectives and goals .

These may include financial objectives, market expansion strategies, product development successes and other quantifiable results.

Explain why each goal is important and how accomplishing it will help drive business growth. Additionally, explain the strategies or activities to achieve your goals.

9. Competitive Advantage

Lay out your competitive advantage by showcasing what distinguishes your business from other companies.

You can shed some light on what makes your company unique. It may be anything from novel technology to outstanding customer service, cost management, or exclusive alliances. Remember to highlight how your competitive edge makes investing in your company a great decision and opportunity for investors.

You should include the company's patents, trademarks and other intellectual property rights you’ve acquired here. Even if you’ve applied for a pending patent, feel free to mention it.

A company overview should highlight the USP of the business and convey it to the audience concisely and engagingly. To create a strong USP, businesses must examine the profile of their target customer and market their products in a way that shows how they can solve their problems.

Let's see how you can write the company overview and use it as the foundation of your marketing efforts:

1. Provide Basic Company Information

Consider the company overview as your company's introduction. Give critical details about your business in the first paragraph, such as

Company Name: Mention your company's legal name as it appears on state records.

Management Team: Consider listing the names of the company's owners, founders and individuals who are part of the company.

Business Structure: Identify the type of business, such as a corporation, LLC, partnership, or sole proprietorship.

Location: Share the address of your company's main office and any additional owned sites.

By including these specifics, you provide a succinct description of your firm in the business overview.

2. Include Unique Details

After jotting down the basic information, it’s time to write down the key components. Write down your company history, mission statement and the industry you operate in.

Include a brief summary of the problem your business is trying to address and the proposed solution. Be sure to keep this statement relevant by considering your long-term goals. Other relevant details you can mention here include:

• Any honors or accolades that your business has won
• The business principles and cultures
• Any new or unique aspects (features or benefits) of your product or service
• The commitment of your business to social responsibility

However, below are some common mistakes you should be mindful of while writing:

• Using a dull template,
• Drafting unrealistic goals,
• Over-hyping your business,
• Making the overview complex,
• Poor grammar and punctuation,
• Not defining your target audience

If you need help crafting content for your company overview, you can use Visme's AI writer . It can quickly generate text for your presentation, ensuring the information is clear and concise.

3. Showcase the Passion

When creating a company overview, showcasing your passion and enthusiasm for your business is essential. Injecting humor, storytelling and brand voice can make your overview more engaging.

However, it's also important to remember that 65% of the general population are visual learners. Therefore, creating visually appealing presentations is also crucial to keep your audience engaged, apart from storytelling and humor. Visual aids such as graphs, charts, and images can help convey complex information in an engaging way

To create stunning presentations with top-notch visuals, Visme's thousands of templates can be customized with text, images, and colors. Now you can enhance your content's value and make your slides look more engaging!

4. Define your Product or Services

Next, describe your offerings in more detail, along with your target market.

Your potential customers must first understand the products/service you offer and how they can help if you want them to invest in your company.

Nonetheless, other parts of your business plan, like your market analysis, will go more in-depth about that information.

5. Review with your Team

Writing a business plan is a collaborative activity. Brainstorm with your team to create a compelling narrative for your company summary.

During the session, pick everyone's brain to get unique ideas and then leverage their feedback and fill in the different sections of your company overview.

Visme makes team collaboration super seamless. In Visme, team members can leave tag each other, leave feedback and resolve comments in real-time and on their time. Once done, you can share and publish your work for everyone in your organization. You can easily publish your presentation online in Visme and share it directly with a URL or embed it on your website.

Watch this video to learn how to collaborating using Visme.

Consider your team member's suggestions, as they can help you whether or not you’ve communicated your message to the point.

6. Highlight Your Goals

Outline your objectives and what steps you will take to achieve them in the last section of your business overview.

Recognize that goals can change as your company goes through different stages of development.

For instance, if your business is growing and seeking investors, goals related to scale and growth become more prominent. However, profitability and expansion may become more critical as your business grows.

Emphasize the value of reevaluating and reviewing goals frequently to be responsive to market conditions. This approach ensures your business remains agile and focused on a path to long-term success.

7. Keep it Concise

Remember that your business plan has plenty of room for specifics. The company overview should include the most fundamental details required for someone to understand your business.

You don’t need to worry if your first draft is too long. Simply read it several times and cut out any extraneous elements and phrases to shorten it.

And to make your readers continue reading the whole plan, make sure it’s written clearly and complemented with engaging visuals such as icons , stock photos and videos.

The company overview is just one part of the business plan. We all know how important it is to start your new business on the right foot. And so we're here to help.

Watch the video below to learn how to write a  business plan. This video will help guide you through your financial planning, marketing strategy, unique selling point and more.

8 Company Overview Templates

Visme has many company overview and business plan templates with different design layouts and structures for various industries.

It might initially feel intimidating with all the data and no design experience. But our intuitive editor is foolproof whether you're a novice or a professional.

We have handpicked eight business overview templates to help you get started!

1. Consultancy Business Plan Template

The consulting industry has steadily grown over the past several years. It is expected to reach $343.5 billion by 2025 . So if you’re looking for investors or promoting a consulting agency, then this professional business template is perfect for you.

This template lets you present a business idea or proposal to your clients. It highlights your company's services, key features, strategies, testimonials and more.

Furthermore, you can ensure brand integrity by customizing this template by adding brand assets like colors, fonts and company logos . You can also create a brand kit in Visme to store them across all your designs.

If you don’t want to do it manually, you can also access Visme’s Brand Wizard to generate a complete set of branded templates. You only need to input your website URL; the wizard will pull in brand assets that match your brand style.

2. Software Brand Go-To-Market Strategy Plan Template

Are you looking to launch a new product as a software brand? There's nothing better than this template for a software brand's go-to-market strategy.

With a monochromatic color combination that enhances clarity and understanding, the template is professional and easy to read.

You can use Visme to make an interactive map to complement your go-to-market plan. To visualize geographic data, you can quickly generate color-coded maps using the free map maker and templates. This feature is helpful when envisioning an area where most of your consumers live.

3. Travel Website Business Plan Template

According to a study, an estimated 700 million people will book travel online by 2023. Out of these, 83% of US adults want to book their trips online.

Getting off the ground can be difficult for many travel brands today. But if you want to invoke a sense of adventure in your business and clients, use this travel business plan template to show that you've researched and why you are the ideal fit for them.

Using this template, you can be sure that your business plan includes everything you need, including a mission statement, business objectives, a SWOT analysis of the market, a sales forecast and organizational management.

Tailored to those passionate about travel, you can effortlessly capture everyone’s imagination with photos of idyllic locations pulled from Visme’s library of high-resolution stock images .

And if you don't find anything that catches your fancy, don't sweat it. With Visme's AI image generator, you can generate professional-quality photos, graphics, art, drawings and paintings. The wizard will automatically generate and present options if you simply input an accurate prompt that precisely describes what you want.

4. Consulting Revenue-based Sales Plan Template

Do you want to create a comprehensive sales plan for your consulting business? This template can help you with that.

Consulting revenue-based sales plan template will help your businesses outline the various stages, executable actions, methodologies, outcomes, and goals of the sales process.

If you’re a consultant or a consulting firm, you can use this template to stay on top of your sales plans.

And if you want to include any data outside of Visme, as seen in the 7th slide, you can easily import it into your presentation. Visme allows you to connect and import data from Excel, Google Sheets, Google Analytics and Survey Monkey to create charts and graphs that visualize your data.

After importing the data, increase your presentation's impact by using data visualization tools to transform raw data into visually appealing graphs, charts and infographics. This approach stresses crucial points effortlessly, sparing your audience from grappling with text-heavy content.

5. Nonprofit - Business Plan Template

Creating a business and marketing plan for your nonprofit is essential when starting a business. You need to get the word out to increase donations and awareness for your cause.

This heartwarming business plan template will help you share your vision with potential donors and stakeholders. The stunning visuals capture the essence of your organization's objectives, making a lasting impression on those who support your mission.

Go ahead and edit content and change images, fonts and color themes to suit your unique needs. Add a dose of interactivity and animated features like navigation, pop-ups and icons that can highlight more information when users hover over them. It’ll create an immersive experience for your stakeholders.

However, If you’re short on time and looking for a way to customize and complete this template quickly and easily, try Visme Shortcuts . It’s a simple feature that allows you to find features, elements or assets by typing “/.”

6. Unique Restaurant Business Plan Template

Whether you're seeking to launch a new restaurant, grow or revamp your current business, or evaluate investments in this sector, you can use this vibrant and extensive template.

With soothing colors that will complement your restaurant's theme and beautiful visual elements, this template will add a touch of flair to your presentation. It has well-crafted aesthetic parts, balanced layouts and thoughtfully designed icons that make the presentation appear better.

Get a head start on creating a memorable business plan for your restaurant. If you want to share the business plan with key stakeholders, download it or share a live link.

If you share the live link, you can use Visme analytics to see how many people clicked and viewed your business plan. You can access unique visits, average time, duration, IP address and more analytics.

So wow your audience and unlock the doors to your restaurant's success with this delicious business plan template.

7. Denim Business Plan Template

A study by Technavio revealed that the denim industry will grow at a CAGR of 6.71% between 2022 and 2027. It means the demand is considerably high and the business is profitable. Now, that also implies cutthroat competition in the market.

So, you must create a winning business plan for your denim brand to engrave your audience and stakeholders. This trendy template can help you capture the essence of your creative vision and stay ahead of the curve,

If you want to fit your business or individual preferences, you can easily alter the backgrounds, fonts and colors while editing the template. Use Visme's dynamic fields to speed up the editing process and keep your presentation polished.

With the dynamic field option, you can update texts that repeat across slides. Even if you want to create specific variables for your use cases, you can do so with the Custom Fields option.

8. Real Estate - Marketing Plan Template

A written strategy and projections for your real estate investment are necessary to get funding for a proposed project.

Use this professionally created marketing plan template to increase your real estate sales. It includes pre-designed pages to display your business goals, buyer persona, SWOT analysis and more.

If your goal is lead generation for your real estate business, with Visme forms , you can create customized forms, popups and CTAs to embed on your landing page or website. Get three times more impressions and leave a lasting impression on your audience with no code builder form.

Effortlessly Create Company Overviews & More with Visme

A company overview is your entry point for attracting the interest of partners, investors and other stakeholders.

It takes skill and a deep awareness of your audience, as a business overview is not just a list of numbers and statistics. A well-crafted narrative that showcases your organization's vision, goals, and significant accomplishments is essential.

Nonetheless, creating and sharing a data-driven business plan doesn't have to be tough a nut to crack. You can seamlessly convey your ideas and goals with Visme's easy-to-use editor, professionally created templates, attractive data visualizations and interactive and collaborative features. Additionally, Visme offers millions of premium images, visual aids, and design elements to make your company overview stand out.

It's time to abandon traditional approaches and create a business plan that entices your stakeholders. Sign up for Visme today and start creating!

Create a compelling business plan and company overview with Visme

Trusted by leading brands

Recommended content for you:

Create Stunning Content!

Design visual brand experiences for your business whether you are a seasoned designer or a total novice.

About the Author

Unenabasi is a content expert with many years of experience in digital marketing, business development, and strategy. He loves to help brands tell stories that drive engagement, growth, and competitive advantage. He’s adept at creating compelling content on lifestyle, marketing, business, e-commerce, and technology. When he’s not taking the content world by storm, Unenabasi enjoys playing or watching soccer.

• Search Search Please fill out this field.

What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

• How to Start a Business: A Comprehensive Guide and Essential Steps
• How to Do Market Research, Types, and Example
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills
• Business Plan: What It Is, What's Included, and How to Write One CURRENT ARTICLE
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

• Terms of Service
• Editorial Policy
• Privacy Policy

Business Plan Section 2: Company Description

The company description provides a snapshot of your business. Check out the 11 components to include in this section of your business plan.

Think of the company description section of your business plan as a snapshot of who you are and what your company is all about. What do you do? How are you different from other businesses? What niche does your product or service fill? It doesn’t have to be lengthy, but it should be well-thought out to present you in the best light while being as accurate as possible. Some specifics to include:

1. Company Name

The official legal name of your business.

2. Business Structure

Are you a sole proprietorship, limited liability corporation, partnership or corporation?

3. Ownership or Management Team

Who are the key players? What makes them (or you) qualified to run your business?

4. Location

Where are you headquartered?

5. Company History

When and where were you founded? What inspired you to come up with the idea for your business?

6. Mission Statement

What is the purpose of your company? What need does your product or service fill?

7. Products or Services

What are you making or selling, or what service are you providing?

8. Target Market

Who are you selling to? Who are the customers, organizations, or other businesses that your company will serve?

9. Competitive Advantages

What separates you from the competition? What is it about you that will make your business a success? Why will people want to do business with you?

10. Objectives

What would you like to accomplish in the immediate future, and what are your longer-term goals?

11. Vision Statement

What does the future of your company look like? How will you craft your vision statement?

Now that you have some ideas of the substance, think about the style. Even though the purpose of the company description is to give basic information about your business, it’s an opportunity to promote yourself and explain why you’re worth loaning money to or being involved with.

If you had just a few moments with a potential customer or investor, what would you tell them about your business? Start with an elevator pitch-a quick, few sentence description that captures all the important information about your company, along with your passion for what you’re doing.

Some of what you’ll want to say about the company will be covered in other sections of the business plan, so keep this part more of an overview.

Let your passion shine. When you share the story about why you started your company and what keeps you motivated, it helps you stand out from the crowd and gives your plan a personal touch. Be professional, but don’t be afraid to let your excitement show and draw the reader in. Make them look forward to reading the rest of the plan.

That said, don’t get carried away. It may be hard to find the balance between brevity and excitement about all you are doing and all you have planned, but it’s important to do so. Get an editor that you trust to make sure you’ve kept a professional tone yet conveyed the essence of what differentiates your business from others.

Editing is important. You may tackle the company description first when writing your plan, then find you cover a lot of the information in greater depth as you go along. Definitely plan to read and re-read what you’ve written, and cut out any unnecessary or duplicate information.

If possible, proofreading is even more important than editing! Few things will have someone take you less seriously than typos, misspellings, and grammatical errors. This advice covers more than just the company description portion of your business plan, of course. Make sure your business plan presents you in the best light, not just as far as content is concerned, but how it’s written, as well.

To sum up, the company description is the basic introduction to your business. If someone reads only this part of your plan, they should be able to get what you’re trying to accomplish.

NEXT ARTICLE > Business Plan Section 3: Organization and Management

Apply for a loan, get started.

Loans from $5,000 - $100,000 with transparent terms and no prepayment penalty. Tell us a little about yourself, your business and receive your quote in minutes without impacting your credit score.

Thanks for applying!

Loans are originated and funded through our lending arm, Accion Opportunity Fund Community Development. By clicking “Continue to Application,” you consent to, Accion Opportunity Fund Community Development’s Terms of Use and Privacy Policy ; and to receive emails, calls and texts , potentially for marketing purposes, including autodialed or pre-recorded calls. You may opt out of receiving certain communications as provided in our Privacy Policy .

Everything You Need to Know About Business Description

A business description is included in a small business plan. It outlines objectives and how to achieve them. 3 min read updated on February 01, 2023

A business description is included in a small business plan. It outlines objectives and how to achieve them. The Small Business Administration states an effective business plan will generally include:

• Executive summary
• Company description
• Service or product
• Organization and management
• Small business market analysis
• Marketing and sales
• Funding request
• Financial projections

What is a Business Description?

In most business plans, the company description is included in the section that directly follows the executive summary. The business description is meant to provide an overview of the business, including what the business does and how the company is unique from others in the same industry. This description provides extensive details outlining the business. In addition to outlining goals and how the goals are going to be met, it includes where the company is located and how many people are going to be employed.

It also gives a detailed overview of the vision and direction of the business ; this helps lenders and stakeholders develop a realistic picture of who and what the business are. A business description varies from one company to the next. Generally, though, it will need to look similar to the following:

• The official name of the business
• Where the business' operations are going to be conducted
• Type of structure (sole proprietorship, LLC, partnership, or corporation)
• Names of the people who own the company and any senior-level employees
• The address of the company's headquarters
• Date the business was started
• How the company came to be
• Goals the company needs to meet
• Mission statement; this outlines the purpose of the business
• What is being sold and the market segment being targeted
• Future goals (both short- and long-term)
• Vision statement; what is your vision of the company's future

Questions to Ask and Answer When Creating a Business Description

You can ask and answer the following questions to help you create a detailed business description:

• Why should consumers purchase my product?
• Who am I targeting?
• What avenues of communication are in place for me to communicate with customers?
• What services and products am I going to sell? Are there certain products and services that I don't sell that my targeted audience may expect me to sell?
• Where is my business going to be located?
• Where am I going to source the products/services I am selling?
• What will my hours of operation be? Is anyone going to be working for me? If so, who are they and how will I pay them?
• Who is going to handle core operational tasks, like accounting, advertising, and shipping?
• What forms of marketing am I going to use to promote my company?
• Who are my competitors? What are their strengths and weaknesses?
• What is it about the business that makes it unique from the competition? (this question needs to be answered from the viewpoint of a customer)

What Goes Into the First Paragraph of a Business Description?

The first paragraph of a business description needs to be extensively detailed, capturing pertinent information about the business. It's in this paragraph that you want to ensure the name of the company is clearly stated. In addition, make sure to outline the present outlook of the company as well as its future potentials.

It is also helpful to include information and data on the markets you intend to offer your products/services in. Furthermore, you should detail any products or developments that are expected to hit the market that could have an impact on your company, whether it be a positive or adverse impact.

The Importance of Citing Your Sources

All of the observations you make should be made using reliable data; include sources to this data in footnotes. You will need to provide these footnotes if you are seeking funding for the company . The investor will want your sources to ensure you are not making projections based on assumptions. Your goal is to captivate their attention and entice them to invest in the company. As you are creating the business description, make sure to outline its structure. Are you a retail company? A manufacturing business? Accounting firm? Are you service-oriented?

Proofreading the Business Description

You should always have your business description proofread. This proofreading should take place by a person who has not been part of creating the business plan ; this allows a fresh set of eyes to examine the description for any typos and grammatical errors.

If you have questions about creating a business description or if you need help developing one, post your legal need on the UpCounsel marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• Parts of Business Plan and Definition
• General Business Description Examples
• Service Business Plan
• Details of a Business Plan
• Business Plan
• How to Make a Business Plan Format
• Business Description Outline
• How to Start a Business: A Comprehensive Guide for Entrepreneurs
• IT Company Business Plan
• Creating a Business Plan

• Sources of Business Finance
• Small Business Loans
• Small Business Grants
• Crowdfunding Sites
• How to Get a Business Loan
• Small Business Insurance Providers
• Best Factoring Companies
• Types of Bank Accounts
• Best Banks for Small Business
• Best Business Bank Accounts
• Open a Business Bank Account
• Bank Accounts for Small Businesses
• Free Business Checking Accounts
• Best Business Credit Cards
• Get a Business Credit Card
• Business Credit Cards for Bad Credit
• Build Business Credit Fast
• Business Loan Eligibility Criteria
• Small-Business Bookkeeping Basics
• How to Set Financial Goals
• Business Loan Calculators
• How to Calculate ROI
• Calculate Net Income
• Calculate Working Capital
• Calculate Operating Income
• Calculate Net Present Value (NPV)
• Calculate Payroll Tax

12 Key Elements of a Business Plan (Top Components Explained)

Starting and running a successful business requires proper planning and execution of effective business tactics and strategies .

You need to prepare many essential business documents when starting a business for maximum success; the business plan is one such document.

When creating a business, you want to achieve business objectives and financial goals like productivity, profitability, and business growth. You need an effective business plan to help you get to your desired business destination.

Even if you are already running a business, the proper understanding and review of the key elements of a business plan help you navigate potential crises and obstacles.

This article will teach you why the business document is at the core of any successful business and its key elements you can not avoid.

Let’s get started.

Why Are Business Plans Important?

Business plans are practical steps or guidelines that usually outline what companies need to do to reach their goals. They are essential documents for any business wanting to grow and thrive in a highly-competitive business environment .

1. Proves Your Business Viability

A business plan gives companies an idea of how viable they are and what actions they need to take to grow and reach their financial targets. With a well-written and clearly defined business plan, your business is better positioned to meet its goals.

2. Guides You Throughout the Business Cycle

A business plan is not just important at the start of a business. As a business owner, you must draw up a business plan to remain relevant throughout the business cycle .

During the starting phase of your business, a business plan helps bring your ideas into reality. A solid business plan can secure funding from lenders and investors.

After successfully setting up your business, the next phase is management. Your business plan still has a role to play in this phase, as it assists in communicating your business vision to employees and external partners.

Essentially, your business plan needs to be flexible enough to adapt to changes in the needs of your business.

3. Helps You Make Better Business Decisions

As a business owner, you are involved in an endless decision-making cycle. Your business plan helps you find answers to your most crucial business decisions.

A robust business plan helps you settle your major business components before you launch your product, such as your marketing and sales strategy and competitive advantage.

4. Eliminates Big Mistakes

Many small businesses fail within their first five years for several reasons: lack of financing, stiff competition, low market need, inadequate teams, and inefficient pricing strategy.

Creating an effective plan helps you eliminate these big mistakes that lead to businesses' decline. Every business plan element is crucial for helping you avoid potential mistakes before they happen.

5. Secures Financing and Attracts Top Talents

Having an effective plan increases your chances of securing business loans. One of the essential requirements many lenders ask for to grant your loan request is your business plan.

A business plan helps investors feel confident that your business can attract a significant return on investments ( ROI ).

You can attract and retain top-quality talents with a clear business plan. It inspires your employees and keeps them aligned to achieve your strategic business goals.

Key Elements of Business Plan

Starting and running a successful business requires well-laid actions and supporting documents that better position a company to achieve its business goals and maximize success.

A business plan is a written document with relevant information detailing business objectives and how it intends to achieve its goals.

With an effective business plan, investors, lenders, and potential partners understand your organizational structure and goals, usually around profitability, productivity, and growth.

Every successful business plan is made up of key components that help solidify the efficacy of the business plan in delivering on what it was created to do.

Here are some of the components of an effective business plan.

1. Executive Summary

One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

In the overall business plan document, the executive summary should be at the forefront of the business plan. It helps set the tone for readers on what to expect from the business plan.

A well-written executive summary includes all vital information about the organization's operations, making it easy for a reader to understand.

The key points that need to be acted upon are highlighted in the executive summary. They should be well spelled out to make decisions easy for the management team.

A good and compelling executive summary points out a company's mission statement and a brief description of its products and services.

An executive summary summarizes a business's expected value proposition to distinct customer segments. It highlights the other key elements to be discussed during the rest of the business plan.

Including your prior experiences as an entrepreneur is a good idea in drawing up an executive summary for your business. A brief but detailed explanation of why you decided to start the business in the first place is essential.

Adding your company's mission statement in your executive summary cannot be overemphasized. It creates a culture that defines how employees and all individuals associated with your company abide when carrying out its related processes and operations.

Your executive summary should be brief and detailed to catch readers' attention and encourage them to learn more about your company.

Components of an Executive Summary

Here are some of the information that makes up an executive summary:

• The name and location of your company
• Products and services offered by your company
• Mission and vision statements
• Success factors of your business plan

2. Business Description

Your business description needs to be exciting and captivating as it is the formal introduction a reader gets about your company.

What your company aims to provide, its products and services, goals and objectives, target audience , and potential customers it plans to serve need to be highlighted in your business description.

A company description helps point out notable qualities that make your company stand out from other businesses in the industry. It details its unique strengths and the competitive advantages that give it an edge to succeed over its direct and indirect competitors.

Spell out how your business aims to deliver on the particular needs and wants of identified customers in your company description, as well as the particular industry and target market of the particular focus of the company.

Include trends and significant competitors within your particular industry in your company description. Your business description should contain what sets your company apart from other businesses and provides it with the needed competitive advantage.

In essence, if there is any area in your business plan where you need to brag about your business, your company description provides that unique opportunity as readers look to get a high-level overview.

Components of a Business Description

Your business description needs to contain these categories of information.

• Business location
• The legal structure of your business
• Summary of your business’s short and long-term goals

3. Market Analysis

The market analysis section should be solely based on analytical research as it details trends particular to the market you want to penetrate.

Graphs, spreadsheets, and histograms are handy data and statistical tools you need to utilize in your market analysis. They make it easy to understand the relationship between your current ideas and the future goals you have for the business.

All details about the target customers you plan to sell products or services should be in the market analysis section. It helps readers with a helpful overview of the market.

In your market analysis, you provide the needed data and statistics about industry and market share, the identified strengths in your company description, and compare them against other businesses in the same industry.

The market analysis section aims to define your target audience and estimate how your product or service would fare with these identified audiences.

Market analysis helps visualize a target market by researching and identifying the primary target audience of your company and detailing steps and plans based on your audience location.

Obtaining this information through market research is essential as it helps shape how your business achieves its short-term and long-term goals.

Market Analysis Factors

Here are some of the factors to be included in your market analysis.

• The geographical location of your target market
• Needs of your target market and how your products and services can meet those needs
• Demographics of your target audience

Components of the Market Analysis Section

Here is some of the information to be included in your market analysis.

• Industry description and statistics
• Demographics and profile of target customers
• Marketing data for your products and services
• Detailed evaluation of your competitors

4. Marketing Plan

A marketing plan defines how your business aims to reach its target customers, generate sales leads, and, ultimately, make sales.

Promotion is at the center of any successful marketing plan. It is a series of steps to pitch a product or service to a larger audience to generate engagement. Note that the marketing strategy for a business should not be stagnant and must evolve depending on its outcome.

Include the budgetary requirement for successfully implementing your marketing plan in this section to make it easy for readers to measure your marketing plan's impact in terms of numbers.

The information to include in your marketing plan includes marketing and promotion strategies, pricing plans and strategies , and sales proposals. You need to include how you intend to get customers to return and make repeat purchases in your business plan.

5. Sales Strategy

Sales strategy defines how you intend to get your product or service to your target customers and works hand in hand with your business marketing strategy.

Your sales strategy approach should not be complex. Break it down into simple and understandable steps to promote your product or service to target customers.

Apart from the steps to promote your product or service, define the budget you need to implement your sales strategies and the number of sales reps needed to help the business assist in direct sales.

Your sales strategy should be specific on what you need and how you intend to deliver on your sales targets, where numbers are reflected to make it easier for readers to understand and relate better.

6. Competitive Analysis

Providing transparent and honest information, even with direct and indirect competitors, defines a good business plan. Provide the reader with a clear picture of your rank against major competitors.

Identifying your competitors' weaknesses and strengths is useful in drawing up a market analysis. It is one information investors look out for when assessing business plans.

The competitive analysis section clearly defines the notable differences between your company and your competitors as measured against their strengths and weaknesses.

This section should define the following:

• Your competitors' identified advantages in the market
• How do you plan to set up your company to challenge your competitors’ advantage and gain grounds from them?
• The standout qualities that distinguish you from other companies
• Potential bottlenecks you have identified that have plagued competitors in the same industry and how you intend to overcome these bottlenecks

In your business plan, you need to prove your industry knowledge to anyone who reads your business plan. The competitive analysis section is designed for that purpose.

7. Management and Organization

Management and organization are key components of a business plan. They define its structure and how it is positioned to run.

Whether you intend to run a sole proprietorship, general or limited partnership, or corporation, the legal structure of your business needs to be clearly defined in your business plan.

Use an organizational chart that illustrates the hierarchy of operations of your company and spells out separate departments and their roles and functions in this business plan section.

The management and organization section includes profiles of advisors, board of directors, and executive team members and their roles and responsibilities in guaranteeing the company's success.

Apparent factors that influence your company's corporate culture, such as human resources requirements and legal structure, should be well defined in the management and organization section.

Defining the business's chain of command if you are not a sole proprietor is necessary. It leaves room for little or no confusion about who is in charge or responsible during business operations.

This section provides relevant information on how the management team intends to help employees maximize their strengths and address their identified weaknesses to help all quarters improve for the business's success.

8. Products and Services

This business plan section describes what a company has to offer regarding products and services to the maximum benefit and satisfaction of its target market.

Boldly spell out pending patents or copyright products and intellectual property in this section alongside costs, expected sales revenue, research and development, and competitors' advantage as an overview.

At this stage of your business plan, the reader needs to know what your business plans to produce and sell and the benefits these products offer in meeting customers' needs.

The supply network of your business product, production costs, and how you intend to sell the products are crucial components of the products and services section.

Investors are always keen on this information to help them reach a balanced assessment of if investing in your business is risky or offer benefits to them.

You need to create a link in this section on how your products or services are designed to meet the market's needs and how you intend to keep those customers and carve out a market share for your company.

Repeat purchases are the backing that a successful business relies on and measure how much customers are into what your company is offering.

This section is more like an expansion of the executive summary section. You need to analyze each product or service under the business.

9. Operating Plan

An operations plan describes how you plan to carry out your business operations and processes.

The operating plan for your business should include:

• Information about how your company plans to carry out its operations.
• The base location from which your company intends to operate.
• The number of employees to be utilized and other information about your company's operations.
• Key business processes.

This section should highlight how your organization is set up to run. You can also introduce your company's management team in this section, alongside their skills, roles, and responsibilities in the company.

The best way to introduce the company team is by drawing up an organizational chart that effectively maps out an organization's rank and chain of command.

What should be spelled out to readers when they come across this business plan section is how the business plans to operate day-in and day-out successfully.

10. Financial Projections and Assumptions

Bringing your great business ideas into reality is why business plans are important. They help create a sustainable and viable business.

The financial section of your business plan offers significant value. A business uses a financial plan to solve all its financial concerns, which usually involves startup costs, labor expenses, financial projections, and funding and investor pitches.

All key assumptions about the business finances need to be listed alongside the business financial projection, and changes to be made on the assumptions side until it balances with the projection for the business.

The financial plan should also include how the business plans to generate income and the capital expenditure budgets that tend to eat into the budget to arrive at an accurate cash flow projection for the business.

Base your financial goals and expectations on extensive market research backed with relevant financial statements for the relevant period.

Examples of financial statements you can include in the financial projections and assumptions section of your business plan include:

• Projected income statements
• Cash flow statements
• Balance sheets
• Income statements

Revealing the financial goals and potentials of the business is what the financial projection and assumption section of your business plan is all about. It needs to be purely based on facts that can be measurable and attainable.

11. Request For Funding

The request for funding section focuses on the amount of money needed to set up your business and underlying plans for raising the money required. This section includes plans for utilizing the funds for your business's operational and manufacturing processes.

When seeking funding, a reasonable timeline is required alongside it. If the need arises for additional funding to complete other business-related projects, you are not left scampering and desperate for funds.

If you do not have the funds to start up your business, then you should devote a whole section of your business plan to explaining the amount of money you need and how you plan to utilize every penny of the funds. You need to explain it in detail for a future funding request.

When an investor picks up your business plan to analyze it, with all your plans for the funds well spelled out, they are motivated to invest as they have gotten a backing guarantee from your funding request section.

Include timelines and plans for how you intend to repay the loans received in your funding request section. This addition keeps investors assured that they could recoup their investment in the business.

12. Exhibits and Appendices

Exhibits and appendices comprise the final section of your business plan and contain all supporting documents for other sections of the business plan.

Some of the documents that comprise the exhibits and appendices section includes:

• Legal documents
• Licenses and permits
• Credit histories
• Customer lists

The choice of what additional document to include in your business plan to support your statements depends mainly on the intended audience of your business plan. Hence, it is better to play it safe and not leave anything out when drawing up the appendix and exhibit section.

Supporting documentation is particularly helpful when you need funding or support for your business. This section provides investors with a clearer understanding of the research that backs the claims made in your business plan.

There are key points to include in the appendix and exhibits section of your business plan.

• The management team and other stakeholders resume
• Marketing research
• Permits and relevant legal documents
• Financial documents

Was This Article Helpful?

Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

Microsoft's ex-HR VP says to leave your company ASAP if you're put on a PIP: 'Surviving it is like a sign on your back'

• Chris Williams was the VP of HR at Microsoft and is now an advisor and consultant.
• He writes that performance-improvement plans rarely help people recover.
• Williams advises getting a fresh start in a new position.

If you find yourself on a performance-improvement plan, you need to be thinking about your next steps. Even if you complete the plan, your best next step is probably not in your current job.

As a former vice president of human resources at Microsoft, I've seen more than a few people on PIPs. I saw that recovery was hard. True success in the aftermath is next to impossible. Here's why.

What is a PIP?

People are put on PIPs because of significant issues meeting the job requirements. They're unable or unwilling to get the results the job requires.

They almost always have been given repeated warnings about their performance. This usually includes counseling, training, and support to improve their performance. Despite efforts by both the employee and the manager, they still fall short, and a PIP is the result.

Occasionally, you could be put on a PIP for reasons less in your control. Perhaps you had personal issues that caused a performance problem. Or your manager was unable or unwilling to support you as you struggled in your role. This is an unfortunate situation that happens all too often.

Related stories

Whatever the reasons, a PIP is nominally a plan to help you recover. These plans usually include formal steps such as training and support to help you reach the required performance. Key to the plan is a set of metrics you need to meet in a given time period. If you do that, you can recover, escape the plan, and resume less monitored work.

PIP results

The vast majority of people do not meet those metrics. Though sometimes marginally improved, the issues that caused the performance gap remain. Departure from the company results.

For those who do leave, it is a wrenching experience. But many find that an opportunity for a clean start elsewhere is a net benefit. They can start over in a different role, perhaps more suited to their skills. Or in an environment more compatible with their temperament. Though painful, the process of PIP followed by escape and renewal works to many people's longer-term advantage.

For those very few who manage to work their way up and out of a PIP, this chance for renewal is lacking. They return to their role having escaped a near-death experience. Both they and their manager are cautious and look for every sign indicating further struggles.

Surviving it is like a sign on your back that warns management you may be a poor performer. Regardless of where you travel within the company, there will always be the specter of the PIP. Even if you manage to excel and become a star, the shadow of the PIP will be a weight on your success.

PIP next steps

That's why I recommend that anyone placed on a PIP immediately begin planning their next steps: updating their résumé, connecting within their network, and researching other opportunities, not within their company but outside, where the shadow of the PIP will never loom.

Because if you've been put on a PIP, it will remain a part of your history with that company. Any hiring manager in the firm will be well aware of your struggles. And that's likely to loom large in any decision they may make about you.

So turn your attention elsewhere, somewhere where you can gain a fresh start and a more positive outcome. It will be better for your attitude and outlook. Find positions where you feel confident you can perform, and apply for those.

When you interview for those positions, be prepared to answer the question, "Why did you leave your previous role?" I would suggest you say, "It was a situation where I was unable to excel." Resist the temptation to go into details or to disparage your former manager or company.

Simply move on promptly to your excitement for the role you are interviewing for, excitement that will be genuine as you look to the future, not the past.

Shaking the long shadow of a PIP is hard. It's best to start in a new environment with a clean slate and put the past of the PIP well behind you.

Chris Williams  is the former VP of HR at Microsoft. He's an executive-level advisor and consultant with more than 40 years of experience leading and building teams.

Watch: How to get your employees to reveal their true motives

• Main content

Walgreens plans store closures as CEO says consumers 'stunned' by prices

Walgreens is planning potentially sweeping store closures as it faces what its CEO called a “challenging” environment for pharmacies and U.S. consumers.

The pharmacy chain on Thursday morning announced quarterly earnings that fell short of Wall Street expectations. Walgreens' stock price was down about 25% as of midday.

In an interview with CNBC , CEO Tim Wentworth said the company now forecasts weaker consumer spending for the rest of the year.

″We assumed...in the second half that the consumer would get somewhat stronger” but “that is not the case," Wentworth said. 

"The consumer is absolutely stunned by the absolute prices of things, and the fact that some of them may not be inflating doesn’t actually change their resistance to the current pricing," he added. "So we’ve had to get really keen, particularly in discretionary things."

Last month, Walgreens, following Target's lead , announced plans to slash prices on some 1,300 items in response to better serve customers it said were increasingly under "financial strain."

Wentworth didn't state an exact number of closures, but implied it could be as much as 25% of the chain's approximately 8,600 stores.

“75% of our stores drive 100% of our profitability today,” Wentworth said. “What that means is the others we take a hard look at, we are going to finalize a number that we will close.”

Walgreens has contended with difficulties for years.

The company's share price has seen steady declines for about a decade, dropping from a peak of more than $95 a share in 2015 to less than $15 today. It's reported reduced revenues from prescription drugs, and its retail offerings remain under pressure from both big-box chains and Amazon.com. And it already announced a plan to close 150 U.S. stores last summer.

Today, Walgreens is about one-third the size of chief rival, CVS , which has also been under pressure over the past two years.

Since the Covid 19 pandemic, Walgreens has seen a period of executive leadership turmoil: Wentworth was named CEO in October after his predecessor, Starbucks and Walmart veteran Rosalind Brewer, unexpectedly announced her departure from the role less than three years into the job.

A bright spot was its health-care segment, which topped revenue estimates. Walgreens views on-site medical services and specialty pharmacy offerings as critical to its ongoing push to transform from a major drugstore chain into a large health-care company. 

Rob Wile is a breaking business news reporter for NBC News Digital.

Annika Kim Constantino covers the biotech and pharmaceutical industry for CNBC Digital.