Business Plan Part-02: Company Description
In this section, provide detailed information about your company. A company description is an essential component of a business plan or a company profile. It provides detailed information about the nature of the business, its history, mission and vision, organizational structure, products or services offered, target market, and competitive advantages. A well-crafted company description helps stakeholders, investors, customers, and employees understand the essence of the business and its goals. Let’s delve into the key elements of a comprehensive company description.
Nature of the Business: Begin by introducing the type of business your company is engaged in. This could include manufacturing, retail, services, technology, healthcare, etc. Explain the industry your business operates in and provide an overview of the products or services you offer.
History: Share a brief history of your company, including its founding date, major milestones, and significant achievements. Highlight any noteworthy growth, expansions, or changes that have occurred over the years. This gives context to your company’s journey and establishes credibility.
Legal Structure and Organizational Plan: Provide details about the organizational structure of your company. This includes information about the ownership (e.g., sole proprietorship, partnership, corporation), the management team, key personnel, and their roles and responsibilities. Explain how decision-making processes are structured within the organization.
Write answers to some of the following questions-
What will be your business type?
How many partners will there be?
Will the license be a proprietorship or a partnership?
Will it be private or public limited?
Who will have how much share?
Who will have what responsibilities and powers?
The organizational plan should be arranged to answer these various questions.
Make this part very important by taking time, reviewing and researching various topics. Remember, if this part is made by your emotions, it will be a big mistake. So make this part not with emotion, but make it with conscience or intelligence. Then you can take your business to success.
Business Location: Whether your business is offline or online, also mention here. Specify your business’s physical or virtual location and any additional locations if applicable.
Mission and Vision: Clearly state your company’s mission statement and vision for the future.
The vision is basically set with the larger thought of the customer as well as the society in mind. This is the ultimate goal of the company. It can be called the peak of Everest, to which the company takes one activity after another to reach the peak.
Clearly state your company’s mission and vision statements. The mission statement outlines the purpose of your business, its core values, and the primary goals it aims to achieve. On the other hand, the vision statement paints a picture of where the company aspires to be in the future.
Such a crazy dream is a vision that seems impossible to ordinary people. Entrepreneurs start where ordinary people stop. Vision is the long-term purpose.
Where you want to reach, where you want to see the company after 10 years – this is the vision.
Amazon’s Vision: To be Earth’s most customer-centric company where customers can find & discover anything they might want to buy. Here Amazon focuses on global spread, customer priority, and availability of many products. Mission, on the other hand, essentially answers the why: Why does your company exist?
For example: Google’s mission is- “Organizing the world’s information.”
Again the mission of Amazon is– “We strive to offer our customers the lowest prices, the best available selection & the utmost convenience.”
Facebook Mission: “To give people the power to share and make the world more open and connected.”
Values: Values set a company’s core beliefs, ethics, behavior and culture. Core values will tell what is right or wrong, dos and don’ts. Outline your core values and principles that guide your business decisions and operations.
Core values are the guiding principles that dictate human behavior and action.
According to Jim Collins in his book Built to Last, the core value set Company performance is increased 6 times. The decision-making process becomes easier when the company has a set of values. These values do not mean creating value for the product to the customer: it is about setting values by thinking about the company’s policy direction.
Products or Services: Offer a comprehensive overview of the products or services your company provides. Highlight key features, unique selling points, and any proprietary technologies or methodologies used. Discuss how your offerings meet the needs of your target market and differentiate your company from competitors.
Target Market: Define your target market segment(s) in terms of demographics, psychographics, geographic location, industry, or any other relevant criteria. Explain why this target market is attractive and how your company plans to reach and engage with these customers effectively.
Competitive Advantages: Identify and articulate the competitive advantages that set your company apart from competitors. This could include factors such as innovative technology, superior quality, cost leadership, strong brand reputation, customer service excellence, or strategic partnerships.
Market Position: Discuss your company’s current position in the market, including market share, industry rankings, customer perception, and brand awareness. Evaluate the competitive landscape and highlight opportunities for growth or potential threats.
Financial Overview: Provide a high-level overview of your company’s financial health. This may include revenue figures, profit margins, growth trends, funding sources, and any significant financial achievements or challenges.
In summary, a comprehensive company description serves as a roadmap that guides stakeholders in understanding the essence of your business, its value proposition, market positioning, and growth trajectory. It should be clear, concise, and compelling, showcasing the strengths and capabilities that make your company unique and promising in the marketplace.
