Continued from The Market Analysis: Business Plan Part Two.
Company Description: As the title suggest, this section describes the business. In the Company Description, the San Diego business owner summarizes the nature of the business, how the business is organized, the needs of the marketplace and the reasons why your business will succeed. The information in the Company Description may be repetitive of other sections. Be careful not to copy exact language from the Market Analysis or the Organization and Management sections. Instead, use the information in these sections to help paint a broad picture of the company and how each of these factors interrelate with each other within that broad picture.
Organization & Management: The next section in a typical business plan is Organization & Management. It sets forth in detail the company’s organizational structure, ownership and management structure and identifies the owners, management team and/or board of directors and their qualifications. This section tells the reader whether the company is a California corporation, limited liability company, partnership or sole proprietorship. It then identifies the owners, their percentage interest in the company, the role each will play in the company’s operations and describes their respective experience levels in the industry and exactly how that experience will benefit the company. It is often helpful to provide the reader with an organizational chart that covers all aspects of the company’s operation and tells them who does what.
The Organization & Management section also describes the qualifications of key management personal and corporate officers, and the salaries and benefits offered to keep them. It shows the reader that the company is in good hands, and intends to maintain that level of quality over time. It’s important to set forth the details of the owners and management team’s qualifications, including their names, percentage and type of ownership (if owners), position and description of their primary job duties and responsibilities, unique experience and skills, employment history and track record with other companies and recognition in the industry. What are their achievements? In short, prospective investors want a resume for each person that will have influence over the success of your business.
Continued in Marketing Your Product or Service: Business Plan Part Four.