In recent weeks we have had the opportunity to introduce a rather important and recurring theme in the entrepreneurial initiatives of all our readers: the drafting of the Business Plan, an essential document to be able to present businesses, products, services, mission, philosophy, objectives, financial sustainability and all the other specific features that stakeholders expect to read.
And so, after introducing what a Business Plan is , and having understood how to start on the right foot with the preparation of the Executive Summary , we just have to take another step forward and understand how to write a good description of your company.
What is the description of the enterprise?
After the Executive Summary that we had the opportunity to examine in the previous part of our in-depth analysis on the Business Plan, we come to deal with the description of the company which, as can be guessed, is the area of the Business Plan dedicated to a more in-depth overview of your company , with the aim of accurately illustrating the nature of the company and describing its fundamental characteristics.
Within this section the mission must therefore find reference (attention: it is certainly not to make money!), Long-term objectives, short and medium ones (which obviously must be integrated with larger targets), strengths and weaknesses, success factors, and so on.
An introductory part, albeit a rather concise schematic one, can then be used in relation to general information such as, for example, the type of company, the date of incorporation, past changes in the legal form, those expected, investors, directors, l organization chart, leading figures, and so on.
Even without going into excessive levels of analytical depth, a good Business Plan will have to include the name of the company, the legal form, what it does, what its reference market is, where it is located within the same market, what is the offer of goods and services that it wants to achieve or is already realizing, what is its territorial horizon, what level of development has it already reached. Everything must then be integrated with the objectives that the company intends to achieve, which of course must be realistic, achievable and monitor able, and presumably must be able to attract the interest and attention of potential lenders and capital investors.
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5 elements that must guide the company’s description
At this point, in order to be able to guide you more clearly towards the satisfaction of the requirements that a correct and fair descriptive area should include, we want to summarize below the 5 elements that should never be missing in this area of the Business Plan.
Let’s see them together, point by point.
Market and sector
It is essential to provide readers of the Business Plan with a clear idea of the market and sector in which your initiative operates. So, once you have briefly described the characteristics of your company, concentrate on positioning it precisely in its market / sector combination.
In this way you will help the reader of the Business Plan to understand in which competitive scenario the company operates.
Another element that cannot be missing in your Business Plan is the indication of the objectives, which must be reported clearly and explicitly, including financial, economic, commercial targets, reference indicators, and so on.
Naturally take care to indicate the most relevant objectives (it is not necessary to go too deep at this stage) and focus on the most relevant indicators for the market / sector in which the company operates.
A really important aspect of your effort to create an appropriate descriptive section of the company can only be represented by the list of results already achieved, especially if they are positive and worthy of particular note.
Therefore, take care to indicate your elements of past success: you will strengthen the impression of excellent specific skills, and give the reader the assessment of reliability on your skills.
The strengths are the determinants that you believe can be a critical element of success, the driving force that will allow you to achieve the business objectives. Already in the section dedicated to the description of the company you must take care to indicate them at least in summary form.
For example, it could be the characteristics of the management or of the company organization, or even some characteristics of the products and services, particular proposal methods, and so on.
Points of weakness
Just as you should place the right emphasis on listing the strengths, you should be sufficiently capable of managing the weaknesses, or the elements of difficulty that could threaten the success of the company registration and the achievement of the targets. Focus on the main ones, indicating how you think they can be contained or deleted.