In our previous article, we summarized how to write a business plan. In this article, you will learn how to write a good general company description for your business plan.
Professional general company descriptions should introduce readers to what your company entails. A good rule of thumb is to keep your general company description brief but informative, i.e., around two pages.
Here are the 4 main topics your general company description should expound on;
- Context of your business
- Profile of your business
- Profile of your specific market
- Anticipated challenges and planned responses
In this article, we will dive into each category, explaining the dynamics, and how to craft each section with expertise.
#1. Context of your business
In this section, you will provide a big-picture perspective of the industry to which your enterprise belongs. Prepare the reader to better understand how your business fits into this picture. In your writing, you should include:
- Industry background – Your business is definitely in a larger category of niches. Describe this category and list other segments within the category that houses your enterprise
- Growth potential – Describe how your company projects growth and the future expectations of your business.
- New products and developments – What new developments have come about in the recent past that make your products or services more desirable to your consumers? List them in this section.
- Economic trends – Give evidence that consumers are willing to spend on your product or service.
- Industry outlook and forecasts – Describe the future of the industry according to leading experts, industry leaders, economists, and the government.
#2. Profile of your business
As you continue writing your business plan, make sure you acknowledge that the business will face both positive and negative factors. Consequently, it is your duty to convince the reader that your business will still shine despite the obstacles that you’ve pointed out. To achieve this, you will need to ask yourself some very important questions;
- What is the precise nature of your business?
- How have you developed your products and services?
- What are the economic trends? Give evidence that spending trends are favourable to the industry
- What are the factors that influence your business? Be sure to include:
- Local economic factors
- Dependence on special vendors and suppliers
- What are your plans for research and development?
- Do you have contracts and agreements? If so, include them in the appendix
- What are your operational procedures?
#3. Profile of your specific market
In this section, you will need to define your specific market by stating precisely who the consumers of your products or services are.
Make sure to include their geographical scope, including size and population.
Evaluate your business’s ability to satisfy the market’s demand and know how your business plan will help you attract the right customers while retaining the ones you already have.
#4. Anticipated challenges and planned responses
In this section, you will list your contingencies in case of any anticipated obstacles and challenges that may arise as you run your enterprise. Here are some examples of challenges the business may face while in operation:
- Competition – Assess the strengths and weaknesses of your competitors, and establish your unique selling proposition. Give insight into how your competition will try to block you from the operation and how you will respond.
- The vulnerability that may be caused by;
- Product obsolescence.
- Cheaper products from competitors.
- Possible economic depression in the future.
- Turnover of key employees.
- Seasonality of your products and services.
- Legal factors. Consider;
- License requirements must be maintained.
- Regulations under which your business must operate in.
- Future changes in legal governmental policies and your anticipated response.
- Any governmental agencies with whom you must register.
- Protection issues:
- Patents, copyrights, trademarks etc.
- Steps to assure business secrets are preserved.
- The key man contingency. It involves;
- The depth of your management team.
- Management procedures to ensure the continuity of leadership.
- Plans for responding to the loss of important personnel.
- Staffing and policies at the workplace.