Business Ownership Students - Creating Your Company Description

Creating Your Company Description

What is the Company Description Section of a Business Plan?

The company description section of a business plan provides the reader with a brief overview of the business including the business name and other relevant information about the business. The company description section is usually placed near the beginning of the business plan to establish a framework for the reader.

What’s Included in the Company Description?
The Company Description section of a business plan usually includes the following components:
1. The company name
2. A general summary of the business
3. A declaration of a business form of ownership. Will the business be operated as a sole proprietorship, partnership, or corporation?
a. Resource: Selecting The Legal Structure For You Business
4. An industry classification for the business. What NAICS (North American Industry Classification System) code applies to your business? Refer to the North American Industry Classification System (NAICS) Web site (http://www.naics.com/search.htm) for assistance in answering this question.
5. The location of the business. In other words, where will the day-to-day operations of the business take place?
6. The year the business was formed
7. The primary function of the business. What are the main products or services provided by the business?
8. How many employees, if any, will be working for the company? What will their job titles be?
9. Who (if anyone) will be providing advice on legal, insurance, and accounting issues? These people are commonly referred to as “business advisors.”


Sample Company Description

I. Company Name
The legal business name is “Decker’s Digital Desktop.”
II. Business Summary
Decker’s Digital Desktop is a desktop publishing business established to provide local area businesses with desktop publishing services.
III. Form of Ownership
Decker’s Digital Desktop will operate as a sole proprietorship. The proprietor of the business is Shaun Decker, the owner.
IV. Industry Classifi cation
According to the North American Industry Classification System (NAICS), the industry
classification for a desktop publishing business is “Document Preparation Service.” The NAICS code number is 561410.
V. Location
Decker’s Digital Desktop will operate from the owner’s home residing at 123 Prescott
Avenue in Pleasant Landing, NY.
VI. Year Established
Decker’s Digital Desktop was established in 2006.
VII. Primary Function
The primary function of Decker’s Digital Desktop will be to provide area businesses with desktop publishing services in the form of both print and electronic documents.
VIII. Employees
Shaun Decker, the owner, will be the only employee of Decker’s Digital Desktop.
IX. Business Advisors
Jeff and Caroline Decker, the owner’s parents, will serve as business advisors to Decker’s Digital Desktop.