When crafting an effective business plan, it’s essential to articulate a clear and compelling Business Description. This section serves as a fundamental element whether you’re pursuing an SBA loan, seeking investor funding, or preparing for your company’s launch. Below, we detail the essential components to include in your business description, each serving as a cornerstone in presenting your business to potential lenders and investors.
Entity Details
The Entity Details provide a snapshot of your company’s legal structure and are crucial for anyone reviewing your business plan. Include the following information:
- Company Name: The registered name under which your company operates. If you have a DBA, make sure to include it here.
- Effective Date: The date your company was legally established.
- Ownership: Details about the ownership structure.
- Principal Address: The main operating address of your business.
- Corporate Status: Your business’s legal standing (e.g., LLC, Corporation, Partnership).
If you don’t know all of this information, looking on your state’s Secretary of State website will have this key information. Here is a link for all the Secretary of State websites.
Owner Details
This section highlights the credentials of the business owner(s) and is a strategic place to demonstrate to lenders and investors why they should invest in you and your team. Essential details include:
- Background: Educational and professional history of each founder.
- Skills and Experience: Specific skills and industry experience that contribute to the potential success of the business.
- Vision for the Business: Personal motivations and aspirations for creating the business.
Company Details
The next section of the Business Description is the Company History. Key questions to ask yourself within this section include:
- How did the company come about?
- Why did you and your cofounders want to pursue the creating the company?
- What is the lasting legacy that you would like to make through your company?
Mission and Vision
The next section of the Business Description is the company’s mission and vision.
As defined by Hubspot, the mission of a company defines why your company exists. What impact or legacy would you like to leave on your clients, team, community and perhaps the world, through your company? A mission statement sets the tone for the company, and empowers the organization to prioritize various activities.
Next, is the vision. The vision is the ultimate destination for your company. When we work with clients at The Exceptional Plan, we tell them to think of a vision that is divided into three parts. These three parts include:
- People: What type of culture would you like to create through the creation of your company?
- Revenue: What is the revenue goal that you would like to achieve within 10 years of the start of your company?
- Impact: How many people would you like to impact through the work that you do?
Core Values
These should reflect the foundational beliefs and guiding principles important to your business operations. For example:
- Integrity: Conducting business with honesty and transparency.
- Innovation: Pioneering new solutions and embracing change.
- Customer Focus: Commitment to customer satisfaction and excellence in service.
- Community Impact: Striving to make a positive difference in the community.
Partnering with The Exceptional Plan to develop your business plan ensures you create a document that not only meets the requirements for an SBA or investor business plan but also effectively communicates your vision and strategy. Our expertise in how to write a business plan empowers you to present a polished and professional overview to potential lenders and investors, increasing your opportunities for funding and successful business execution.
By following these guidelines and leveraging professional support, your business plan will serve as a robust foundation for your entrepreneurial journey, paving the way for funding success and long-term business growth.
Contact us today to work with us to live the life you’ve dreamed of.