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Business Description

The business description tells your users of the business plan all about the business.It informs them of the nature, purpose and scope of the business. This is very important to the user's of the business plan because if gives them complete detail of the business.

A good discription should contain the purpose of the business.You business purpose should state what your business want to achieve, beyond making a profit.

Objectives

While purpose is general, objectives should be SMART:

* Specific

* Measurable

* Actionable

* Realistic

* Timed

You should be able to state your business SMART objectives.

The business description provides important answer to some of the following questions:

What is the exact business of the firm?

You want to take your time to tell your suppose readers the exact business the firm or company engaged in. If the firm is a marketing or production company you have to mention this here.

What product or services does it engaged in?

It is your duty to let your reader have complete information about the product your company produce or the services it renders. These information builds up together to let your reader have a complete picture of your firm.

Who are the target market for the product or service?

You want to tell your users who the target market is. Is the product made for a specific group of the society? Are you targeting the people that made up the upper class of the economy? Is your product made for a special group of people? You have to explain this in your description.

Who will manage and lead the business?

The person responsible for managing the business is also very important. Do you have a management team that can perform? Do they have good track record? These are some of the factors that can make an investor or supplier have confidence on your firm.

What is the business past and current financial position?

You should be able to let the business plan users know the business past financial position. Has the business been making profit in the past? If so how much profit does it make?The present financial position of the business should also be made known to the plan users.

Why will the firm be successful?

You dont want to invest your money in a business that will not succeed? You have to convince the users of your business plan or your supposed investors that your business will not fail. They must know that the business will succeed before they can invest in it.

The reason why the answer to these questions in important is that it helps investors makes investment decissions regarding your firm or business. The best place investors can get these answer is in your business description.