What Is Company Description
The company description is a summary of the most important points of the company: its history, the management team, where it is located, what it does and what it hopes to achieve, the mission statement and the legal structure. It usually appears after the executive summary in the business plan.
The company description of the business plan describes the vision and direction of the company so that potential lenders and partners can develop an accurate impression of the company.
This is usually the shortest chapter in the business plan, but that doesn't reduce its importance. If this plan is being presented to outsiders, this is the opportunity to introduce the company.
When writing this section of the business plan, focus on the highlights: who is the founder and owner, prominent members of the team, product or service, why is it unique. Think of this chapter as the "who, what, when, where and why" of business.
The target audience
Developing a business plan that suits your purposes means tailoring it to your audience. That may mean removing a section that is not applicable to the current project.
If this chapter is written for an internal business plan, an update on the status of the company could be written.
If this plan is for external use or investors, the audience's perspective should be considered. They will not yet know the work team, the facilities or the legal structure.
How do you write a company description?
The description of the company within the business plan includes the sections described below:
Company overview (summary)
This is the meet and greet section of the business plan. If the tone of a speech had to be written eloquently, it could be put in this section. Keep it brief, as what is said here will be expanded upon in the following sections.
Company history
The company history section will start with when the business was founded and who was involved, including a bit of the backstory.
This section will vary depending on who this business plan is presented to and what stage the business is in. If this is an internal plan, historical data may not be essential.
If this is a startup business plan, you will not have a history of the company itself, but you could use the company history section to give a concise description of how the founder (s) decided to start this company. .
To seek financing
In the event that the plan is to seek financing, investors will want to know the background story, and this section will provide a context for the business plan. Include how the company started, how it grew, and the changes made along the way. What led the company to this point?
If it is a business looking for financing to expand or for a new project, the company history section will be quite important. You'll want to make it clear that you have a strong track record of successful projects, getting through tough times, and making good business decisions.
Who did you decide to partner with? Have new products been launched over time? Were improvements made to the facilities or services? Are operations optimized?
Management team
The management team section is the opportunity to paint a picture of the work team and show its best attributes.
Again, for internal use, this may not be applicable, although it could be used to highlight the onboarding of new hires or existing employees who are taking on some new leadership responsibilities .
If you are starting or looking to expand, there may be team members that are known to be missing. In that case, those roles are mentioned and what the plans are to fill those gaps.
People who may currently be assuming multiple responsibilities or sharing duties should be included.
If you plan to present the plan to a bank or other potential investors, this is critical data. Who are the leaders in the company? What qualifies them for their positions and inspires confidence?
Reference can be made to work experience, past successes, MBAs, and other degrees for each person. It should be shown to everyone from the best point of view, remembering that investors invest first in people and then in ideas.
Legal structure and ownership
In relation to the management team, you may want to include a separate section that describes the legal structure and ownership of the organization.
The legal structure of the business is an important piece of information that any source of financing must have. Is it an anonymous company? A limited liability company? A sole proprietor? This will also affect the way taxes are reported.
The ownership structure of the business will be important information to include. Who owns what percentage of the business? Banks and investors will want this information to be clearly explained.
Locations and facilities
This section is used to describe where business is to be done. Are you buying a building for manufacturing? A store? Do you already have a large space?
This section should explain the circumstances of the use of any space mentioned. Include whether it is owned or leased, and what the relevant terms of that contract are, if you have one.
Make it clear what the long-term plan is for any space you have, or what the needs will be for a future installation. Even if you have a home office, that is included as well.
Mission statement
Make your mission statement as concise as possible. What idea can be distilled into one or two sentences that express the main mission of the company?
This could be something you want to create together with your management team, if you have one, to convey a shared long-term vision.
Goals and objectives
The objectives are the long-term plan, where you want the company to be. Goals are the steps that are used to achieve the objectives.
For example, a goal might be to have a healthy and successful company that is a leader in customer service and has a loyal following of followers. Goals can be annual sales targets and some specific measures of customer satisfaction.
Products and services
Products or services are described in detail, including technical specifications, photos, drawings, sales brochures.
What are the competitive advantages or disadvantages of the business? Examples of competitive advantages include unique characteristics or differences in product quality.
It could be explained how the prices, rates or leasing structures for the products or services were arrived at.
Example
Company Description ZTE Corporation
Introduction
ZTE Corporation is a world leader in telecommunications and information technology. Founded in 1985, it is listed on the Hong Kong and Shenzhen Stock Exchanges.
The company is committed to providing integrated innovations to deliver excellence and value to consumers, operators, businesses and public sector customers in more than 160 countries around the world to enable greater connectivity and productivity.
ZTE believes that technological innovation is in the core interest of the company. Of the company's annual revenue, more than 10% is invested in research and development.
The company has established state-of-the-art research and development centers in the US, Canada, Sweden, China, etc., and employs more than 30,000 research professionals in the development of next-generation technologies such as 5G, Internet of Things. things, NFV, SDN, Cloud Computing and Big Data.
ZTE has filed applications for more than 69,000 patents, with more than 30,000 granted.
According to the World Intellectual Property Organization, since 2010 ZTE has been ranked among the top 3 in the world for patent applications, under the Cooperation Treaty field (PCT).
With Corporate Social Responsibility a key priority for the company, ZTE played an active role in relief efforts, following events such as the 2015 earthquake in Nepal.
ZTE also established the ZTE Special Child Care Fund, the largest charitable fund of its kind in China.
goals
Going forward, the company will be committed to becoming a pioneer in the telecommunications industry, leading standardization, technical insight and commercialization, and driving innovations in telecommunications and information technology globally.
Corporate vision
Become a Distinguished World Leader in the Master of Communication and Information Technology era.
Corporate mission
We will spare no effort to provide the world with great, green and open Communication and Information Technology products and experiences. For our partners who share this vision, we will establish a secure, open and collaborative platform to help them achieve their goals.
Product portfolio
ZTE has the most comprehensive line of telecommunications products in the world, covering all vertical sectors of wireless networks, core networks, access and carrier networks, services and terminal markets.
With its independent and creative research and development capabilities, and its market and customer-oriented strategy, ZTE is able to develop and produce first-class, market-leading technologies in wireless, switching, optical transmission, data, telephone software. and telecommunications.
ZTE uses this expertise to provide end-to-end solutions, tailored to the specific needs of customers around the world.
see also finance and business knowledge
