||Description of the Business
Give a description of your business that explains the nature of the business and its
activities. Convey your vision of the business, your mission statement and describe how
it will grow and profit. Describe your product or service, location, hours of operation, size,
square footage, and inventory requirements such as storage space. Also give industry
trends and growth potential.
Identify your target market (your potential customers). Who are you selling to or who
will buy your product or service? What is the size of the group? If there are segments
or divisions of the target market, describe them by geography, demographics and
How will you reach your market? Describe how you will get the customer to purchase
your product or service. State your sales strategy, pricing policy, promotional ideas, and
advertising campaign. How are you reaching your target market? Radio, print, flyers,
TV, etc.? If you plan to offer customer service, explain. This could include guarantees,
warranties, repairs, special services, delivery and installation. Sample promotional material
could be included in this section.
Competitive analysis is necessary to evaluate the business playing field and identify a
niche for your product or service. List your four major competitors by name. Describe their
strengths and weaknesses. How will you compete against established businesses? State
your competitive advantage. Can you deliver a higher or better quality service than your
Discuss the ownership of the business and the legal structure. Include legal agreements
such as articles of incorporation or partnership agreements. List the skills and experience
you bring to the business, especially management experience. Include a resume. Explain
how the business will be managed on a day-to-day basis. Discuss insurance, the lease
or any rental agreements. How will your business records be maintained? How will you
compensate yourself? List business consultants such as a lawyer, CPA and insurance
professional. Explain the personnel needed to run the business. List job titles, duties and
wages. Discuss how you will hire your employees and explain personnel procedures. List
benefits such as group health insurance and the costs.
Too many entrepreneurs try to start and operate a business without enough money.
Request enough financing to cover all anticipated start-up costs, plus enough working
capital to meet all monthly operating expenses, including the loan payment, for the first six
Review the list of start-up costs you made in Financing Your Business. For this section
of your business plan, you should clearly state your loan request and what you are
contributing in money or some other form. List other funding sources if appropriate and
include what you already have or have paid for.
Project income (sales) and expenses by month for one year. Include information explaining
assumptions used and justifications for the figures in the projections.