A well-crafted business description is the cornerstone of any successful business plan. Whether you’re seeking funding, attracting partners, or simply clarifying your vision, your business description needs to tell a compelling story that captures attention and communicates value.
Start With Your Mission
Begin your business description with a clear, concise mission statement that explains why your business exists and what makes it unique. For example, rather than simply stating, “We sell coffee,” a better mission statement might be, “We provide busy professionals with premium, ethically sourced coffee beverages in a welcoming environment designed for both productivity and relaxation.”
Paint the Big Picture
After your mission statement, provide an overview of your business model and industry. According to the U.S. Small Business Administration, this section should address whether you’re a service provider, retailer, manufacturer, or wholesaler. Explain your legal structure (LLC, corporation, etc.) and outline your industry’s current state and growth potential.
Highlight Your Unique Value Proposition
What sets your business apart from competitors? Perhaps you’ve developed innovative technology, have a superior location, or offer exceptional customer service. Use specific examples to illustrate your competitive advantage. For instance, a local gym might emphasize its 24/7 access and personalized training programs that larger chains don’t offer.
Describe Your Products or Services
Detail what you sell or provide, but focus on benefits rather than features. Instead of listing technical specifications, explain how your offerings solve customers’ problems or improve their lives. A meal delivery service might emphasize how it helps busy families eat healthy, home-style meals together without the stress of grocery shopping and cooking.
Include Growth Plans
Paint a picture of where your business is headed. Outline realistic growth objectives and explain how you’ll achieve them. If you plan to expand to new locations, launch new products, or enter different markets, describe these plans while keeping them grounded in reality.
Keep It Professional Yet Engaging
While your business description should be professional, it shouldn’t be dry. Use clear, engaging language that maintains reader interest. Avoid industry jargon unless absolutely necessary, and when you do use technical terms, briefly explain them.
Common Pitfalls to Avoid
Don’t make the mistake of being too vague or using hyperbole. Statements like “we’ll be the best in the industry” or “we have no competition” lack credibility. Instead, provide specific, factual information about your business’s potential and competitive landscape.
The Length Sweet Spot
Aim for a business description that’s between one to two pages long. It should be comprehensive enough to give readers a clear understanding of your business but concise enough to maintain their attention. Think of it as an elevator pitch expanded into a short story.
Remember Your Audience
Consider who will be reading your business description and tailor it accordingly. A potential investor will want different information than a potential partner or employee. However, always maintain consistency in your core message regardless of the audience.
A strong business description serves as the foundation for the rest of your business plan. Take the time to craft it carefully, and don’t hesitate to revise it as your business evolves. The clearer and more compelling your business description, the better positioned you’ll be to achieve your business goals.