Company overview and background
This section of your business plan encompasses describing your business entity. Essentially, it addresses key areas such as who you are and where you operate. This section of your business plan needs to be as interesting as possible. Include as many facts about your business and describe it with a reasonable number of adjectives and nouns. In the case of an existing business, provide an account of where you have come from, where you are now and where you are going. The contents of your business description should include the name of your business (include the trading name where applicable), the registration number, date registered, contact details and details pertaining to the business owners.
In addition, state the legal form of ownership of your business. When was it formally established or registered? Is it a Close Corporation, Private Company, Public Company, Trust, Not for profit organization, Sole Proprietorship or Partnership? If you have not yet registered a business, visit this page to get a brief overview on the forms of entities in South Africa – Forms of entities in South Africa .
It is important to include a discussion on the strong unique points or competitive advantages of your business and its core competencies. What is your business philosophy? What background does your business have? What skills, competencies and expertise do you and your key business partners or employees bring to your new business? What plans do you have for the future?
Include key elements with regard to the industry that your business operates in or will operate. This may include the size, profit, growth, growth potential , associated risks and important trends in the industry. You may also include a summary of your market. Who do you intend to sell your products to or render services to. Basically include everything that you would cover in a ten minute interview question pertaining to describing your business.
The business description or overview and background can be coupled with the next section which covers the vision, mission, values or principles, objectives and goals of your business. These form part of your overall business strategy.