Business Solutions

If thinking well is wise, and it is, planning well with a clear vision is even wiser, but making the vision reality is the wisest and greatest of all.

The company description section is most reader’s first experience with learning about your business, and should outline your company’s basic background information, along with the business concept. You should explain in broad terms about yourself and what it is that you do. The description also needs to cover the history of your company, how you were able to reach the point where you are, in addition to the direction you intend to go in the future. There are several areas to consider including in your company description.

The Legal Description includes details about the formation of the business, such as where and when it was incorporated if so, a brief description of what line of business or industry it is in, along with a short overview the products or services your company has to offer. If there is significance to the physical location, briefly explain any advantages and benefits to your reader.

History of the company should be wide-ranging and succinct overview of the history of your business. Details should be organized into a timeline or narrative format, and be sure to include any achievements and noteworthy milestones. Include a good explanation of the reason for starting the business, with the main influential force behind its launch, and a brief look at your product/service mix and any changes over time. It can also be good to include historical data such as sales, profits, units sold, number of employees, and any other key facts to build a rationale for your business.

Current Status provides a “snapshot” view of the position of your company today. The view may include locations, products or services being sold now, the number of employees currently, and the level of success the business presently enjoys.  Focus attention on your current strengths, as well as your weaknesses in an honest and candid way.  Clearly understand investors know that every business has weak points, and by acknowledging your weaknesses and outlining steps to combat them, you demonstrate essential business maturity.

Future Goals provides your reader an idea of the directional heading your company is on. Accomplishments targeted over the next 1, 3, 5 or even 10 years, and how they are related goals to the investment you seek. Any investor needs to understand not only why you need their money, but what you intend to do with it as well. Also, the tone of explaining  the  complete  or inclusive approach  to  achieve  growth  and  realize profit  goals  should be presented with language that is not only optimistic, but realistic at the same time. It’s always quite easy to make projections about the future of your company while looking through rose colored glasses, but it’s much more difficult to make them even close to being believable.

So think of the company description as the “who, what, why, where, when and how” of your company, with the focus always on the most important highlights of your business.

You should avoid common mistakes that we find in the company section including:

Far too much detailed information included about your business. Remember, to hit only the most important facts to paint an accurate picture of the company.

Any narrative you include in the description that would lead an investor to consider it your “personal opinion.” Always be sure to stay with the facts and keep narrative that may be interpreted as your personal opinion out of any plan language.

Any appearance that visually indicates you have no business history or business purpose is never a good thing. Both history and business purpose are vital signs and representative of the character and experience of the business. This is not a time to be exceedingly humble about your company, so don’t leave anything out or shortchange your business.

Leaving out important business and legal details is never good. The accomplishment of certain legal steps and information in the life of a business is important to show the level of understanding an investor wants to see before reaching a positive investment decision.

Writing the section in an unorganized or confusing manner should be avoided. Preparing anything in an unorganized and confused manner results in an unorganized and confused mess, and can be avoided by being properly prepared right from the start of the planning process.