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idea will work. A business without vision is a business that will not know what it is doing! The description should include: 1) 2) 4) 3) 5)

An overview of the industry the business will be in. A description of the company. The company's positioning. Descriptions of the company's products or services. The company's pricing strategy.

The Industry Overview Begin the business description with a brief overview of the field the company will be competing in. This is not a discussion of your competition. One is providing an overview of the industry where it and other companies like it will vie. Describe trends in the industry, some history and projections. Do not rely on "best guesses," but use actual industry data from trade associations, government reports and trade journals to support the descriptions. Do not just report the positive side of the industry, include the negative too! For example a discussion of an Internet Services business may include problems anticipated with the number of telephone lines available, or other infrastructure problems with the phone companies involved. Show that all conceivable aspects have been considered. The Company Description Begin with your mission statement - a one or two sentence description of the purpose of the business and to whom the product or service is targeted. It is vital that an entrepreneur know what business they are in. Not being clear in the mission statement indicates that one is not clear about the purpose of one's company. It can also indicate that a business is not prepared for the market. When the railroads failed to recognize that they where in the transportation industry, and not the "train" business, they lost out to trucking and airlines for market share. A business person should pay very close attention to this statement, as all else hinges on it. If during the building of the rest of the plan one discovers that the plan is not correlating to the mission statement, then the mission statement or the plan must be modified. Describe the business. Give a brief history and include information like whether it is a corporation, a retail, or service business. Be complete as to ownership status, location of operations and other pertinent information. When discussing the company's principals, one doesn't need to provide a complete resume. The resumes are included in another section. You can however point out interesting qualities of the principals. For example, if one of the owners of a research firm has been recognized for discoveries in his field and it relates to the business, then one may include a statement like "Biochemist John Blow, who discovered the X factor in 1994, will head up the research team." The company's Products or Services Describe each of the products or services. Go into as much detail as necessary for the reader to get an understanding for what the enterprise will be. Make it interesting. It is important to point out how your particular enterprise is different


Business Plan  

How to write a business plan.

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