A business description should communicate a company’s purpose and what makes it unique and successful.
Let’s go through the elements of a company description, how to write a business description for a business plan and check out company description examples to help you craft a compelling description of your own.
What Is the Use of a Business Description?
The business description of a business plan is an overview of what your company does and why, how it successfully meets its customers’ needs, along with its values and goals for growth. It should pose your value proposition in a way that piques interest and entices readers to review the rest of your business plan.
Keep in mind that readers of your business description may include customers, employees, potential lenders and investors.
What to Include in a Perfect Business Description
When writing the company description for your business plan, it’s important to be concise yet thorough.
This brief description of your business should include the following:
- Business name
- Business owners, founders or current leadership
- Business location
- Business legal structure
- Product or service offerings
- Target audience
- Methods for satisfying customer needs
- Company mission
- Competitive differentiators
- Business goals
Business Description Examples
In your business plan company description, highlight what makes your business different from your competition and how your customers can share that experience. Review these business description examples for inspiration in writing your unique description.
Example 1: Existing LLC
Whether you’re a java junkie or an herbal tea aficionado, Bean Feast offers a satisfying cafe experience for the good people of Chicago and the surrounding region. Co-founded in 2015 by best friends and entrepreneurs Faye Dunway and Rita Harewirth, Bean Feast, LLC, has grown from a single coffee shop in Chicago, Illinois, to a full-service cafe with 3 additional locations in Chesterton, Woodstock and Fort Atkinson, Wisconsin.
Bean Feast’s owners and staff pride themselves on fulfilling their mission to provide quality drinks and food in an atmosphere that welcomes a diverse customer base. What sets Bean Fest apart is its ethically grown and sourced coffee, specialty espresso drinks and delicious baked goods, including cookies, cupcakes and breads.
Additionally, while some cafes like to market themselves as cool and exclusive, Bean Feast welcomes everyone, no matter who you are or where you are in life.
Current annual revenue is $645,000, and with a menu expansion and marketing campaign, it’s expected to grow to $720,000 by the end of this fiscal year.
Now let’s break down this brief description of the business to demonstrate how it meets the requirements for a company description for your business plan.
Business name: Bean Feast
Business owners: Faye Dunway and Rita Harewirth
Business locations: Chicago, Illinois, a full-service cafe with 3 additional locations in Chesterton, Woodstock and Fort Atkinson, Wisconsin
Business legal structure: Limited liability company (LLC)
Product or service offerings: Coffee, espresso drinks, teas and baked goods
Target audience: Coffee and tea aficionados in Chicago and the surrounding area
Methods for satisfying customer needs: Bean Feast provides high-quality specialty drinks and delicious baked goods in a full-service, inclusive and welcoming environment.
Company mission: Bean Feast owners and staff pride themselves on fulfilling their mission to provide quality drinks and food in an atmosphere that welcomes a diverse customer base.
Competitive differentiators: What sets Bean Feast apart is its ethically grown and sourced coffee, specialty espresso drinks and delicious baked goods, including cookies, cupcakes and breads.
Business goals for future growth: With a menu expansion and marketing campaign, revenue is expected to grow to $720,000 by the end of this fiscal year.
Example 2: Existing S-Corporation
Geoffrey’s Limo Service, co-owned by Geoffrey and Valerie Smith, has been offering luxury chauffeured transportation throughout Greater Philadelphia, Delaware and New Jersey since 2018. Limousines, party buses, vans, luxury sedans and SUVs are available to rent for weddings, proms, corporate events, airport transportation and more.
Geoffrey’s goal is to ensure the ultimate guest experience that naturally drives repeat and referral business. No detail is overlooked: From ensuring vehicles are readied with a client’s favorite food, drinks and music to having aromatherapy diffusers emit a client’s preferred scent to greet their senses as soon as they step foot into their lavish vehicle. Additionally, where space allows, butlers and bodyguards can be available to serve as complements to the client experience, setting Geoffrey’s apart from the competition.
This S-corporation has current annual revenue of $750,000, which is expected to grow to $875,000 by the end of the company’s fifth year in operation.
Business name: Geoffrey’s Limo Service
Business owners: Geoffrey and Valerie Smith
Business locations: Greater Philadelphia, Delaware and New Jersey
Business legal structure: S-corporation
Product or service offering: Limousine and luxury ground transportation
Target audience: Businesses and individuals in need of high-quality transportation in Greater Philadelphia, Delaware and New Jersey
Methods for satisfying customer needs: Geoffrey’s provides lavish chauffeured travel services, ensuring no detail is overlooked.
Company mission: Geoffrey’s goal is to ensure the ultimate guest experience that naturally drives repeat and referral business.
Competitive differentiators: Vehicles are readied with a client’s favorite food, drinks and music. Aromatherapy diffusers emit a client’s preferred scent. Butlers and bodyguards are available to serve as complements to the client experience.
Business goals: Current annual revenue of $750,000 is expected to grow to $875,000 by the end of the company’s fifth year in operation.
Example 3: Startup Sole Proprietorship
Whole Health Caterers will offer paleo and keto-friendly, low-carb food preparation services for meal delivery as well as special events throughout Miami, Fort Lauderdale and Palm Beach. Headquartered in Miami Beach, FL, the company is set to open in May 2023. It is structured as a sole proprietorship, operated by owner John Fish, who holds a master’s degree in nutritional science and a diploma in culinary arts.
Whole Health Caterers sets itself apart by serving a local niche market of clientele who seek convenience but don’t want to sacrifice flavor when they’re looking to meet their specialized dietary needs.
The business is projected to have annual revenue of $100,000 by the end of the first year. By the fifth year, $350,000 is expected. To achieve its revenue goals, Whole Health Caterers will advertise to health and fitness enthusiasts as well as network with health-conscious organizations, industry leaders and influencers. Whole Health Caterers will also promote referral credits to existing clients and offer discounts to new meal plan subscribers to further build its customer base.
Business name: Whole Health Caterers
Business owner: John Fish
Business locations: Miami, Fort Lauderdale and Palm Beach
Business legal structure: Sole proprietorship
Product or service offering: Paleo and keto-friendly, low-carb food preparation services
Target audience: Health and fitness enthusiasts as well as network with health-conscious organizations, industry leaders and influencers in South Florida
Methods for satisfying customer needs: Using the skills obtained from a master’s degree program in nutritional science and a diploma program in culinary arts, the owner of Whole Health Caterers crafts healthful, dietary-specific meals.
Company mission: Whole Health Caterers will offer paleo and keto-friendly, low-carb food preparation services for meal delivery as well as special events throughout Miami, Fort Lauderdale and Palm Beach.
Competitive differentiators: Whole Health Caterers sets itself apart by serving a local niche market of clientele who seek convenience but don’t want to sacrifice flavor when they’re looking to meet their specialized dietary needs.
Business goals: The business is projected to have annual revenue of $100,000 by the end of the first year. By the fifth year, $350,000 is expected.
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Business Description Templates
If you need additional guidance regarding how to write a company description in a business plan, working with a business description template could help you through the process.
The following resources on the web offer downloadable documents that can help you frame your company description for your business plan:
Tips for Writing Your Business Description
Now that you’ve seen a few business description examples and understand what the company description is all about, here are a few tips to help you fine-tune your writing.
Don’t Get Carried Away
Think of your business description as the elevator pitch of your business plan – it says the most about what people should expect from your business in a succinct way. Keep in mind that you’ll have your entire business plan to expound on your company, so be brief in this section and limit yourself to a few paragraphs. Hit the main points, but keep things high level.
Write for People
Remember, you want people to read your business plan company description, so demonstrate this enthusiasm in your writing. You’re selling yourself as well as your products and services, so be sure to engage your readers and show what sets your company apart.
Proofread
As a small business owner, you’re likely writing your business description and don’t have an editing team at your disposal. That said, read over your finished product to ensure there are no errors and your dates, data points and figures are correct. Consider having a colleague or trusted professional read over your business description as well.
