Business Description Writing Tips for Every Plan

Key Takeaways

• A business description outlines your business’s purpose, structure, mission, products/services, and market positioning.
• Strong descriptions use clear language, target the ideal customer, and highlight what sets the business apart.
• Business descriptions should include both current business operations and long-term vision.
• Including industry keywords and storytelling helps engage readers and investors.
• Templates and examples can guide effective formatting and content.

A business description is included in a small business plan. It outlines objectives and how to achieve them. The Small Business Administration states an effective business plan will generally include:

• Executive summary
• Company description
• Service or product
• Organization and management
• Small business market analysis
• Marketing and sales
• Funding request
• Financial projections

What is a Business Description?

In most business plans, the company description is included in the section that directly follows the executive summary. The business description is meant to provide an overview of the business, including what the business does and how the company is unique from others in the same industry. This description provides extensive details outlining the business. In addition to outlining goals and how the goals are going to be met, it includes where the company is located and how many people are going to be employed.

It also gives a detailed overview of the vision and direction of the business; this helps lenders and stakeholders develop a realistic picture of who and what the business are. A business description varies from one company to the next. Generally, though, it will need to look similar to the following:

• The official name of the business
• Where the business' operations are going to be conducted
• Type of structure (sole proprietorship, LLC, partnership, or corporation)
• Names of the people who own the company and any senior-level employees
• The address of the company's headquarters
• Date the business was started
• How the company came to be
• Goals the company needs to meet
• Mission statement; this outlines the purpose of the business
• What is being sold and the market segment being targeted
• Future goals (both short- and long-term)
• Vision statement; what is your vision of the company's future

Questions to Ask and Answer When Creating a Business Description

You can ask and answer the following questions to help you create a detailed business description:

• Why should consumers purchase my product?
• Who am I targeting?
• What avenues of communication are in place for me to communicate with customers?
• What services and products am I going to sell? Are there certain products and services that I don't sell that my targeted audience may expect me to sell?
• Where is my business going to be located?
• Where am I going to source the products/services I am selling?
• What will my hours of operation be? Is anyone going to be working for me? If so, who are they and how will I pay them?
• Who is going to handle core operational tasks, like accounting, advertising, and shipping?
• What forms of marketing am I going to use to promote my company?
• Who are my competitors? What are their strengths and weaknesses?
• What is it about the business that makes it unique from the competition? (this question needs to be answered from the viewpoint of a customer)

What Goes Into the First Paragraph of a Business Description?

The first paragraph of a business description needs to be extensively detailed, capturing pertinent information about the business. It's in this paragraph that you want to ensure the name of the company is clearly stated. In addition, make sure to outline the present outlook of the company as well as its future potentials.

It is also helpful to include information and data on the markets you intend to offer your products/services in. Furthermore, you should detail any products or developments that are expected to hit the market that could have an impact on your company, whether it be a positive or adverse impact.

Tips for Writing an Effective Business Description

Crafting a compelling business description requires both clarity and strategy. A well-written business description should:

• Be clear and concise: Avoid jargon and use language that is easily understood by your target audience.
• Focus on your unique value: Emphasize what sets your business apart—your competitive edge, innovative approach, or customer experience.
• Incorporate your mission and vision: Integrate purpose-driven language that reflects your business's long-term aspirations.
• Use keywords strategically: For SEO and audience alignment, include industry-specific terms and phrases that help describe what you offer.
• Be customer-focused: Frame the narrative around how your business benefits or solves problems for customers.
• Include quantifiable metrics: Where appropriate, mention growth statistics, customer numbers, or service reach to establish credibility.
• Tell a brief story: Adding a sentence about your “why” or your founding journey can make your description more memorable.

The Importance of Citing Your Sources

All of the observations you make should be made using reliable data; include sources to this data in footnotes. You will need to provide these footnotes if you are seeking funding for the company. The investor will want your sources to ensure you are not making projections based on assumptions. Your goal is to captivate their attention and entice them to invest in the company. As you are creating the business description, make sure to outline its structure. Are you a retail company? A manufacturing business? Accounting firm? Are you service-oriented?

Common Mistakes to Avoid in a Business Description

When writing a business description, avoiding these pitfalls can improve clarity and professionalism:

• Being too vague: Avoid generic statements like “we offer great service.” Be specific about what you do and how you do it better.
• Overloading with jargon: Industry buzzwords may alienate readers unfamiliar with technical terms.
• Neglecting the audience: Tailor your tone and details to investors, partners, or customers depending on who will read the plan.
• Missing critical information: Always include essentials such as business structure, target market, location, and founding date.
• Inconsistent tone or style: Maintain a consistent voice throughout the business plan for better readability.

Proofreading the Business Description

You should always have your business description proofread. This proofreading should take place by a person who has not been part of creating the business plan; this allows a fresh set of eyes to examine the description for any typos and grammatical errors.

Business Description Template

Use the following template to help structure your business description:

[Business Name] is a [business structure, e.g., LLC, sole proprietorship] founded in [year] and based in [location]. We specialize in [product/service offering] for [target audience/market]. Our mission is to [mission statement]. What makes us unique is [competitive advantage or key differentiator]. As we grow, our vision is to [future goals or aspirations].

This format ensures you cover all essential points while allowing room for brand personality.

Examples of Strong Business Descriptions

Here are two brief examples to guide you in writing a strong business description:

• Retail Example:
  “Urban Bloom is a boutique floral shop based in Denver, Colorado, specializing in sustainable, locally sourced flower arrangements. Since 2018, we’ve served weddings, events, and everyday moments with curated floral experiences. Our commitment to eco-friendly packaging and personalized customer service sets us apart in the floral industry.”
• Tech Startup Example:
  “TaskMind is an AI-powered productivity platform designed for remote teams. Launched in 2022, the platform offers intelligent task tracking, team collaboration tools, and productivity analytics to streamline workflow. Our mission is to help distributed teams work smarter, not harder.”

These examples showcase purpose, target market, unique value, and scope of operations—all key elements of an effective business description.

Frequently Asked Questions

1. What is the purpose of a business description?
   It introduces your company to stakeholders by outlining what your business does, who it serves, and what sets it apart.
2. How long should a business description be?
   A few concise paragraphs are sufficient, ideally between 150 and 300 words depending on the complexity of your business.
3. Where does the business description go in a business plan?
   Typically, it appears after the executive summary as part of the company overview section.
4. What should I avoid in a business description?
   Avoid vague language, jargon, and leaving out essential details such as your business structure, mission, or market focus.
5. Can I use a business description for my website or marketing?
   Yes, with minor tweaks, your business description can be repurposed for online listings, social profiles, brochures, and pitch decks.

If you have questions about creating a business description or if you need help developing one, post your legal need on the UpCounsel marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.