Write a Company and Purpose Description for Your Business
Your company description is the component of your business plan that states what kind of business you’re in and what you look like as a company. The company description tells exactly what your business intends to do, how it intends to do it, and what is going to make it unique and successful.
As you describe your company, communicate the most important aspects of your business, including the kinds of customers you serve, the products and services you offer, and the capabilities that will underpin your success.
The reason this description is so important usually boils down to one word: money. Most small companies have to take out business loans, enlist the help of outside investors, or arrange for lines of credit to cover bills that need to be paid before revenues roll in.
The first thing investors want to know is what your business does, and the best way to persuade them that your business idea is sound is to describe it concisely and convincingly. In the aftermath of the recession, both business loan managers and investors have become particularly tough when it comes to handing out money, which means you’ll have to work harder to convince them that your business plan is a winner.