Suggestions for writing this section:
1. The following sections are where you elaborate and explain the information provided in the
Executive Summary. Be sure to cover in more depth everything you raise in the Executive
Summary.
2. Accuracy and realism are important here.
* Do you know where your company and your product/service stand? Describe the
areas that are rock solid and those that are shakey.
3. Write this section of the business plan first. Use it to remind yourself of where you’ve done
well and what didn't work.
* Your initial draft should be thorough, no detail left unmentioned.
* Once you've written this, then review and edit.
4. Emphasize the accomplishment of significant objectives.
* You want the business to be attractive but not "too good to be true."
5. But don't forget it is also important to reveal any key negatives, problems, or failures.
* Every investor knows there is a downside.
* Be honest about yours. It will build trust.
* It shows a realistic approach to doing business.
6. It is very important that this section shows how your company is different from others.
* It is also critical that you demonstrate to your investors that you have substantial evidence
to support your claims.
7. If you provide a service, be certain your reader understands what that service is and how it is
used by your customers.
8. Be succinct. The industry portion provides background for later portions of the plan.
* Clarify market attractiveness.
* Describe key success factors.
* Leave elaboration for later.
Resources Needed to Write this Section
1. A history of your company including why and how you started. Note key events.
* Show key events and dates.
* Consider putting it into chart form.
2. Your charter, tax papers, or incorporation papers that show the legal form you’ve chosen.
3. Have a product specification sheet or FAB (features, advantages, benefits) sheet on the
product/service.
4. Be able to state your competitive advantage in a paragraph or less. If you can do it in a
sentence, that's even better.
5. A list of your objectives, preferably in quantified terms.
6. list of key success factors, such as: price, quality, durability, dependability, technology, etc.
* Be sure to identify key factors as they pertain to your product/service. A generic list is a
warning flag to investors.
7. An assessment of your intangible assets.
Your Company
1. A history of operation. (Even for a startup, you have some 'history.')
* The legal form of the company.
* Why does your company exist?
* Describe in some detail what your company does and how it satisfies customer
needs.
* How did you choose the product or service you sell?
* What significant successes have you had? What significant failures or losses have
you experienced?
* Concentrate on the successful accomplishment of past objectives, but be honest
about the risk.
2. Highlight significant financial and operational events.
* When did they happen?
* Why were they significant?
3. Intangible assets.
* Goodwill.
* Established name/reputation.
The Industry
1. Explain the nature of the industry.
* Overview the historical development of the industry.
* Note any special events, governmental action, or economic events that have altered the
industry in the last ten years. Don't make a laundry list; note the most important events
only.
* Provide industry data such as market size, growth trends, and competitive strength of
major firms in the industry.
* Are there seasonal fluctuations in demand?
* Address the importance and impact of strategic issues such as: ease of entry and
exit, ability to achieve economies of scale, cyclical nature of the economy or sales cycle,
etc.
* What are industry trends regarding the use of technology?
* How does the future look for the entire industry?
* Are there any international issues? Are companies moving offshore? Are international
competitors coming into the industry?
2. Who could compete with you by offering either a competitive product or by offering a
substitute for your product?
3. What is the current state of the art in the industry?
* How does your product/service reflect this current state or exceed it?
* What do you need: what will you do to succeed in your chosen market?
* What are the current applications of your product/service?
* What are the potential applications of your product/service?