Description of the Business

In this section, provide a detailed description of your business. An excellent question to ask yourself is: "What business am I in?" In answering this question include your products, market and services as well as a thorough description of what makes your business unique from the other businesses competing in the same market.

When describing your business, generally you should explain:

1. Legalities - business form: proprietorship, partnership, S corporation. The licenses or permits you will need.
2. Business type: merchandising, manufacturing or service.
3. What your product or service is.
4. Is it a new independent business, a takeover, an expansion, a franchise?
5. Why your business will be profitable. What are the growth opportunities?
6. When your business will be open (days, hours)?
7. What you have learned about your kind of business from outside sources (trade suppliers, bankers, other franchise owners, franchiser, publications).

Product or Service Considerations

Try to describe the benefits of your goods and services from your customers' perspective. Successful business owners know or at least have an idea of what their customers want or expect from them. This type of anticipation can be helpful in building customer satisfaction and loyalty. And, it certainly is a good strategy for beating the competition or retaining your competitiveness. Describe:

1. What you are selling.
2. How your product or service will benefit the customer.
3. Which products/services are in demand; if there will be a steady flow of cash.
4. What is different about the product or service your business is offering.

Location Considerations

The location of your business can play a decisive role in its success or failure. Your location should be built around your customers, it should be accessible and it should provide a sense of security. Consider these questions when writing this section of your business plan:

1. What are your location needs?
2. What kind of space will you need?
3. Why is the area desirable?
4. Why is the building desirable?
5. Are market shifts or demographic shifts occurring?

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