Business Plan In A Day. Rhonda Abrams
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Company Description
The Company Description provides the basic details about your business. While your Executive Summary creates a compelling case for why your business will succeed, the Company Description fills in the necessary specifics.
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Missing Info?
If you’re just starting your business, don’t worry if you lack some of the information necessary to complete each part of this step. For example, if you haven’t yet legally incorporated, indicate your intention to do so and in which state or province.
While much of this information seems—and is—mundane, providing these facts is the foundation of the picture you paint of your company. Completing this section should not be particularly time consuming or cumbersome; the goal is to quickly provide background information about your company’s structure, ownership, and developments to date.
This section also provides a glimpse of what’s going on in your industry. Offering an overview of your industry is especially important if it is going through significant changes or facing economic difficulties. You’ll need to show you understand the challenges your business, as part of that industry, faces. Of course, if your industry is healthy and growing, you’ll want to point out those positive trends.
In the introductory section of your company description, include the basic details you’d put on any business application or form.
To begin, provide all the names associated with your company. In many cases, the name of your company or corporation is not the same as the name(s) you use when doing business with the public. You may actually have a number of different names associated with your business, including:
Your own name
If incorporated, the corporation name
A DBA—or “doing business as”—also known as a “fictitious business name”
Brand name(s)
The name of your website
Subsidiary companies
For instance, a restaurant called “Carla’s Trattoria” might be legally owned by a corporation named C & J Food Enterprises. “Carla’s Trattoria” is the DBA of the company, and both names should be listed in the business plan. If the restaurant’s owners also bottle and sell spaghetti sauce, the name of the brand of their bottled foods (“Carla’s Special Sauces”) should also be listed.
List the location of your company’s main place of business, any branch locations, and any other locations, such as warehouses. If you operate more than two or three branches, you can list the total number of locations here, but include a complete list of addresses in your business plan’s Appendix.
Company Name and Location
ComputerEase, Inc., is an Indiana-based company providing computer software training services—both on-premises in the greater Vespucci, Indiana, area, and online—to business customers. It operates under the name “ComputerEase.”
Name(s) of business
Corporate headquarters and the company’s software training classroom are located at 987 South Main Street, Vespucci, Indiana. ComputerEase also offers software training classes at its corporate clients’ offices.
Company address and location where they conduct business
What are the names associated with your company? (List all company names, including the legal name of the corporation, “DBA,” brand or product names, names of subsidiaries, and domain names.)
Where is the company’s main place of business? (Give the specific address, if known, or the general area or city if a location is yet to be selected.)
Do you have more than one location? (If so, list the address of each. If the company has many locations, list the total number and addresses or areas where they’re located.)
Who owns your company? If yours is a one-person business, the answer may be simple: you do. But if you have gone into business with others, spell out the ownership division.
It’s also important to specify the legal form of your business. Funders want to know what type of entity they’re doing business with. Many businesses often start out as one form of business (such as sole proprietor) and incorporate later.
Other legal considerations to note here include:
Licensing and distribution agreements
Trademarks, copyrights, and patents
Other legal protections you have secured to protect your proprietary business assets
Other legal issues having a major impact on your business
What’s Your Legal Status?
Sole Proprietorship: The company is not incorporated and is owned and managed by one person.
Partnership: Two or more people own the company, sharing profits, losses, and, usually, management. A legal partnership can exist even if you haven’t drawn up legal partnership documents.
C Corporation: A corporate form that allows a large number and diversity of shareholders. Corporate income is taxed before profits or losses are distributed to shareholders.
Subchapter S Corporation: A small corporation limited in the number and type of shareholders. It provides the liability protection of a C Corporation, but profits and losses are “passed through” to the owners’ personal tax returns.
Limited Liability Company (LLC) or Limited Liability Partnership (LLP): A legal form of business offering benefits similar to those of a Subchapter S Corporation but often with less cost and paperwork.
B Corporation: A type of corporation, allowed for in a few states, that is organized for the public benefit as well as for the benefit of the shareholders.
Not-for-Profit: An organization, agency, institution, charity, or company with charitable, educational, or other public benefit goals, that has been certified as tax exempt by the IRS.
Ownership and Legal Status
ComputerEase was incorporated in the state of Indiana one year ago. Ten thousand shares in the company have been issued: 6,000 are owned by President and CEO Scott E. Connors; 1,000 are owned by Vice President of Marketing Susan Alexander; and 3,000 shares have been retained by the company for future distribution.
Status as a corporate entity
Indicates percent of ownership by each owner
The company was granted the trademark “ComputerEase” by the U.S. Patent and Trademark Office.
Another important legal consideration