How to Write Your Business Description for Your Small Business

If you're in the midst of writing that business plan for your small business, it's helpful to know how to meet the criteria for an effective presentation. The business description section can be a challenging portion of the plan, and it's one area that leaves many entrepreneurs-to-be at a loss for words. If you need some tips and direction in this area, here are just a few tips:

1. Start with a short summary. This will range from 5-8 lines that explain what your business is about, and what the outlook of the industry is in relation to your startup. You'll want to avoid being too general here; use keywords and pertinent information that will attract the eyes of potential investors. You don't need to include any financial information here, so maintain a positive and simple tone.
2. Describe the structure. The next paragraph will outline the basic organization of your business. How many employees will you have? Is this a privately-owned business or will it be funded by a corporation? What type of operation is it; retail, wholesale, online services? You'll need to include the legal structure here too, determining whether the business is an LLC, sole proprietorship, or if it is incorporated. Outlining this with headlines or bolded text will make it simple to understand and read.
3. Describe the products or services. This paragraph will give a brief definition and listing of products and services you plan to begin with. Be specific about what makes these items unique, as this can be a determining factor for investors and potential owners as well. Think about how you want to develop your reputation; what will make you famous?
4. The profit issue. The next paragraph needs to discuss the profitability factor. This will outline why and how your business plans to succeed financially, and including any statistics or history here is a good idea. List the main factors involved in bullet form to make this easy to understand and read. You'll need to research current market prices and trends to get an accurate assessment. Adding a small graph or table showing exactly how your business will stand against your competition can help to illustrate your point effectively.
5. Convey your ultimate message. This will become a part of your purpose and mission statement. Including any details about your vision at the end of the business description will help you tie it all together.

The goal of the business description section of your business plan is to provide a potential investor with specifics and details, but also give the reader to ‘sample' what the business will be like when it comes to life. Using the right words and tone is essential to conveying your message with ease, so be sure to take the time to edit and proofread this section. The business description section can be a few brief paragraphs that span about 2-3 pages at the most. Keep it short, simple, and concise; remember that the remainder of your business plan is still available for additional details, references, and materials!