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C H A P T E R 5
Conveying the Basics of Your Business
Before you can discuss the more complex aspects of your
business and the
meatier sections of your business plan, such as marketing
strategy or new
technology, you must first inform the reader of the basic details
of your busi-
ness. The object of this section is to convey information such as
your legal
status, ownership, products or services, company mission, and
milestones
achieved to date.
The Company Description may be relatively simple to complete,
espe-
cially if you have been in business for some time. However, the
simplicity
may be deceptive, particularly if yours is a new company. Many
of these
basic issues require a lot of thought and planning. For instance,
you may
find yourself spending a great deal of time trying to choose a
business name
or deciding on which legal form your company should take.
If yours is a start-up company, you may feel you don’t have the
infor-
mation to complete each category. As an example, you may not
yet have
rented an office or legally incorporated. In that case, write
down what you
intend to do. You might include information about your current
situation
as well. Thus, you might say, “Rocket Science Technology will
be head-
quartered in Austin, Texas, with a manufacturing facility in
Luckenbach,
Texas. Currently, the company’s address is 1234 Bruce
Springsteen Street,
San Antonio, TX 78216.”
The most challenging aspect of the Company Description
section is
likely to be developing a “Mission Statement,” which concisely
describes
the goals, objectives, and underlying principles of your
company. A Mission
Statement enables you and readers of your business plan to get a
better
Company Description
The reason most businesses fail is that they
don’t understand the business they are in.
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picture of where you intend to go with your business, and it
helps you more
clearly articulate exactly what business you are in.
The following topics should be addressed in the Company
Description
section of your business plan.
Company name
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:
n Your own name
n The legal corporate or company name
n A “dba”(“doing business as”)
n Brand name(s)
n Model name(s)
n Subsidiary company name(s)
n Domain name(s)
The number and types of names you need depend on the kind of
busi-
ness you are in, how you interact with the public, whether you
are incorpo-
rated, what kinds of and how many products/services you have,
and your
own personal taste.
For instance, a company might list its legal name as AAA,
Incorporated,
doing business as Arnie’s Diner, operating the subsidiary
business Rosie’s
Catering Service, selling products under the trade name
“Arnie’s Atomic,”
and operating the website www.arniesatomic.com.
If yours is a new business, and you have not yet chosen a name,
consider
one that meets your current needs but also gives you flexibility
over the
years. If you plan a company where most customers will do
business with
you because they know of you or your reputation, you may have
no better
name than your own. Many consultants, service providers, and
designers,
use just their own name. You can also combine your name with
words that
describe what you do, such as Erin’s Editing Services.
However, using your own name or a business name that is very
narrowly
descriptive may limit your ability to grow, change focus, or sell
the company
in the future. Al’s Airplane Repair is more confining than Take-
off Aviation
Services, or even Take-Off Transportation Services.
Having the legal rights to a memorable website or “domain”
name may
be a competitive business advantage, and if you have been able
to secure the
rights to such a name, you may want to highlight this fact in
your business
plan. The mere fact of having the rights to a catchy domain
name, though, is
not a business in and of itself.
In your business plan, include the legal name of your company
and any
brand or trade names, dba’s, subsidiary company name, and
domain name.
“[Our mission is] To continually provide our members with
quality goods and services at the
lowest possible prices. In order
to achieve our mission we will
conduct our business with the
following five responsibilities in
mind: obey the law, take care of
our members, take care of our
employees, respect our vendors,
reward our shareholders.”
Mission statement of Costco
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Company’s Objectives/statement of Mission
Many, if not most, successful large companies describe the main
goal of their
internal planning process as articulating and clarifying their
“philosophy” or
“mission.” The best, most effective Mission Statements are not
mere empty
words, but principles and objectives that guide all other aspects
and activities
of the business.
You should be able to sum up the basic objectives and
philosophy of
your company in just a few sentences. One statement should
encapsulate the
nature of your business, your business principles, your financial
goals, your
“corporate culture,” and how you expect to have your company
viewed in
the marketplace.
A Statement of Mission provides focus for your company and
should
be the defining concept of your business for at least the next
few years. It
should be the result of a meaningful examination of the
foundations of your
company, and virtually every word should be important.
A finished Mission Statement might be: “AAA, Inc., is a
spunky, imagi-
native food products and service company aimed at offering
high-quality,
moderately priced, occasionally unusual foods using only
natural ingredi-
ents. We view ourselves as partners with our customers, our
employees, our
community, and our environment, and we take personal
responsibility in
our actions toward each. We aim to become a regionally
recognized brand
name, capitalizing on the sustained interest in Southwestern and
Mexican
food. Our goal is moderate growth, annual profitability, and
maintaining
our sense of humor.”
The Statement of Mission worksheet on pages 70–71 helps you
outline
your company’s objectives.
legal issues
In forming a business, you must address many critical legal
issues. One of
the first is which type of legal entity to choose for your
company. Businesses
often start as a sole proprietorship or a partnership. This has the
advantage of
being easy, since there may be no papers to file with the state.
Being incorpo-
rated, on the other hand, provides you and your investors with
much greater
protection from personal liability. Most investors (and some
lenders) are
usually more comfortable dealing with an incorporated entity.
If you choose to incorporate, you will still have many decisions.
What
form of corporation will you choose? In what state will you
incorporate?
How many shares in your corporation will be issued, and to
whom? Legal
concerns and agreements will have a profound impact on the
future of your
company.
In addition to the legal form of your business, there are many
other legal
considerations and issues to address in your business plan. Have
you entered
into licensing or distribution agreements? Have you secured
trademarks,
patents, copyrights, or other legal instruments that may protect
your propri-
etary business assets?
“I had to rework my whole business plan a year or so in,
because it was simply not a
sustainable model. You have
to realize when things aren’t
working, and change them
quickly, to succeed.”
pauline lewis
Owner, oovoo design
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statement of Mission
Describe your company’s philosophy in terms of the areas listed
below.
Range/nature of Products or services offered:
_____________________________________________________
___
Quality:
_____________________________________________________
__________________________________
Price:
_____________________________________________________
____________________________________
service:
_____________________________________________________
__________________________________
overall Relationship to Customer:
_____________________________________________________
______________
management style/Relationship to Employees:
_____________________________________________________
___
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statement of Mission (continued)
nature of Work Environment:
_____________________________________________________
_________________
Relationship to Rest of industry:
_____________________________________________________
_______________
incorporation of new Technology/other new developments:
_____________________________________________
growth/Profitability goals:
_____________________________________________________
___________________
Relationship to Community/Environment/other social
Responsibility goals: __________________________________
other Personal/management goals:
_____________________________________________________
____________
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Here is an example of how to handle the legal description of a
business:
“AAA, Inc., is incorporated in the state of California, licensed
to do business
in Jackson County, California. The three shareholders — Arnie
Matthews,
Brendan Muir, and Aaron Joshua — each own 33 1/3% of the
total shares
in the company. The company has secured U.S. trademarks to
the name
“Arnie’s Atomic Foods,” which is used on its food product line,
and to the
Triple A Shooting Star logo. AAA, Inc., has entered into a
three-year, exclu-
sive distribution agreement with BBB Distributors, the largest
distributors of
Mexican and Southwestern foods in the Southwest.”
The worksheet, Legal Issues, is included on pages 73–74 to help
you
identify key legal concerns.
If you plan to work globally—either selling your products or
services inter-
nationally, importing or exporting products or supplies, or
signing agreements
with international companies to handle aspects of your business
like distribu-
tion, support, or software development—you’ll need to educate
yourself about
the legal requirements and issues that can affect your business.
For example, if you are selling products that entail significant
intellectual
property—also referred to as “IP” (such as software,
electronics, new prod-
ucts)—you’ll want to make certain that the countries where
you’ll sell your
products provide adequate legal protection against piracy. If
you are entering
into international contracts, you’ll want to understand typical
contractual
terms, but even more importantly, you’ll want to determine
where any
disputes/lawsuits will be settled.
Be on the lookout for some countries’ limits on the activities
and owner-
ship rights of foreign companies. Many countries, for instance,
require com-
panies in some industries to be at least majority-owned by
locals. They may
also limit foreign ownership of land or assess tariffs on imports.
Be certain to
understand those limits before entering an international market.
Use the worksheet on page 75 to capture your findings relating
to the
legal issues you need to consider when working internationally.
products and services
This part of your business plan can be relatively short, or it can
be an entire
section of its own. If your products or services are particularly
technical,
complicated, innovative, or proprietary, you will want to spend
considerable
time describing them. This is especially true if you are seeking
funding for a
new product or service and potential funders are likely to be
motivated by
the specifics.
In this part of your plan, clearly identify and describe the nature
of the
products or services you provide. Be fairly specific, but if you
have a large
line of products or services, you do not need to list each one, as
long as you
indicate the general categories. Also indicate future products or
services
planned by your company and when you expect to introduce
them.
If you are developing an innovative product or service,
particularly a tech-
nology product, you must walk a fine line in describing its
details. While you
must provide sufficient detail both to give a clear idea of what
your product
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legal issues
legal fOrM
What is the legal form of your company currently?
Limited Liability Company
no legal entity/status
other,
describe:__________________________
C Corporation
______________________________________
What is the intended legal form if different from above?
Limited Liability Company
no legal entity/status
other,
describe:__________________________
C Corporation
______________________________________
Ownership
if a sole proprietor or partnership, list the owners:
_____________________________________________________
_
if incorporated, how many shares of stock have been issued?
_____________________________________________
Who owns the stock and in what amounts?
_____________________________________________________
______
in which state(s), province(s), country(s), etc. are you legally
incorporated or registered to do business? List dates and
specifics:
_____________________________________________________
_________________________________
Have you secured written agreements between/with:
Key employees/management
Customers
strategic partners
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legal issues (continued)
List which of the following you have secured; include dates and
specifics:
Trademarks:__________________________________________
__________________________________________
Copyrights:
_____________________________________________________
_______________________________
Patents:
_____________________________________________________
__________________________________
domain names:
_____________________________________________________
____________________________
List investments to date, including dates and terms:
_____________________________________________________
List loans or any other debts, including dates and terms:
_________________________________________________
List property leases, purchase agreements, etc., including dates
and terms: __________________________________
List equipment leases, purchase agreements, etc., including
dates and terms: ________________________________
List any distribution or licensing agreements, etc., including
dates and terms: ________________________________
List other strategic partnerships, arrangements, etc., including
dates and terms: ______________________________
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globalization: legal issues
For each country in which you plan to do business, research and
list the legal issues that may have an impact on
you and your company.
COuntrY
_____________________________________________________
_______
Contracts/jurisdiction:
_____________________________________________________
_______
_____________________________________________________
_______
import/export licenses:
_____________________________________________________
_______
_____________________________________________________
_______
intellectual property protections:
_____________________________________________________
_______
_____________________________________________________
_______
global distribution agreements:
_____________________________________________________
_______
_____________________________________________________
_______
Partnership agreements:
_____________________________________________________
_______
_____________________________________________________
_______
other licenses or regulations:
_____________________________________________________
_______
_____________________________________________________
_______
Tax incentives/advantages:
_____________________________________________________
_______
_____________________________________________________
_______
Corporate ownership:
_____________________________________________________
_______
_____________________________________________________
_______
Trade agreements:
_____________________________________________________
_______
_____________________________________________________
_______
Facilities and property ownership/leases:
_____________________________________________________
_______
_____________________________________________________
_______
other legal issues:
_____________________________________________________
_______
_____________________________________________________
_______
_____________________________________________________
_______
_____________________________________________________
_______
_____________________________________________________
_______
_____________________________________________________
_______
_____________________________________________________
_______
_____________________________________________________
_______
_____________________________________________________
_______
_____________________________________________________
_______
_____________________________________________________
_______
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does and to inspire confidence that it actually achieves its
intended purpose,
you do not want to disclose sensitive information. Even if a
reader of your
business plan has signed a Non-Disclosure Agreement (see
Chapter 18), be
extremely cautious of putting highly proprietary or technical
details in your
written document. These can be disclosed at a later stage of
discussions.
Once again using the fictional AAA, Inc., the
“Products/Services” section
might read: “Arnie’s Diner is a full-service restaurant
specializing in Mexican
and Southwestern cuisine. Rosie’s Catering Services provides
catering for
both business and personal occasions. The Arnie’s Atomic food
line currently
consists of seven shelf-stable chili and salsa products. We
anticipate releasing
a line of four packaged Southwestern spice mixtures in the next
six months.
In the second year of this plan, we anticipate introducing a line
of tortilla
chips.”
Management/leadership
Next, include the name of the chairperson of the Board of
Directors,
president, and/or chief executive officer. If there are other key
members of
management, especially those that might be known to potential
investors,
list their names here. Also, if you have a Board of Directors,
Advisory Board,
or other governing entity, indicate how many people serve on
that body and
how frequently it meets. If the membership of these bodies is
particularly
impressive, include their names; otherwise, it is not necessary
to do so.
Business location
List the location of your company’s headquarters, main place of
business
(if different), and any branch locations. If you have more than
one or two
branches, you can list just the total number (although you might
want to
include a complete list in your plan’s appendix). If you have not
yet secured
a location but intend to do so, indicate the general whereabouts
of your
intended operation. Also, it is very important to describe the
geographical
area your company serves.
For instance, state: “The corporate offices of AAA, Inc., are
located at
123 Amelia Earhart Drive, Jackson, California. Arnie’s Diner is
located
at 456 Lincoln Street in Jackson. Rosie’s Catering Services
operates from the
diner and serves the entire Jackson County area. Arnie’s Atomic
food prod-
ucts will be produced at a plant to be leased in Jackson and will
be sold in
five Southwestern states.”
Development stage and Milestones achieved to Date
Someone reading your business plan should be able to get a
clear sense of
how far along your company is in its development, and what
progress you
have made in building the company.
Even start-up companies often have a record of
accomplishments. You may
have already developed technology, raised seed funding, lined
up strategic part-
nerships, or secured indications of interest from key customers.
Showing the
progress you’ve achieved to date inspires confidence in your
ability to develop
your company further and indicates the level of commitment
you have made
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to your business. You will want to clearly indicate any positive
milestones
you’ve achieved.
Begin by stating when the company was founded. Next, indicate
your
phase of development: a seed company (with a business concept
but
without a product or service finalized); a start-up (in early
stages of opera-
tion); expansion (adding new products, services, or branches);
retrenchment
(consolidating or repositioning product lines); or established
(maintaining
market share and product positioning).
Indicate how far along your plans have progressed. Has the
product been
developed or tested? Have orders been placed or the product
shipped? Are
leases signed or suppliers secured? What have been the past
milestones and
successes of current operations? If you earlier set specific goals
with target
dates, indicate if you met those objectives.
A Milestones Achieved worksheet is included in Chapter 15,
and
you may wish to take highlights from that worksheet to include
in your
Company Description section of your business plan.
Using the above example of AAA, Inc., this section might read:
“Arnie’s
Diner opened in 2006, and the company began packaging food
products
used in the restaurant in 2008. These were initially sold in
grocery stores
on a local basis. In January 2009, the company set an annual
sales goal of
$60,000 for the ‘Arnie’s Atomic’ line of packaged food and
exceeded that
goal, achieving $103,000 in gross sales in 2009. In 2010, sales
of packaged
food products rose to $237,000. A leading distributor has been
secured to
sell ‘Arnie’s Atomic’ products to grocery and specialty stores in
five South-
western states. The first orders have been received, placed, and
renewed, and
the company now plans to expand its production facilities to
accommodate
increased sales and develop new products.”
financial status
You also want to give a brief idea of the status of your company
in financial
and personnel terms. For example, readers will want to know
how you have
been funded to date and any major financial obligations. You
should also
indicate any loans or investments you have received and on
what terms. If
you are seeking funding, briefly indicate how much money you
seek and
for what purpose. You will expand on your financial obligations
and use of
funds sought in the Financials section of your plan.
Thus, this section might read: “AAA, Inc., has maintained
overall profit-
ability through slow, careful expansion of its component
companies. Total
gross revenue for the previous year was approximately
$1,247,000. Rosie’s
Catering is presently the most profitable, last year showing a
profit of
$128,000 on sales of $525,000; Arnie’s Diner showed a profit of
$81,000
on sales of $485,000; Arnie’s Atomic Foods projects a current
year loss of
$77,000 on sales of $237,000. Currently the total workforce is
five full-time
employees and seven part-time employees. We are now seeking
to expand
the production facilities, add employees, and increase our sales
and market-
ing efforts. To do so, we are seeking an additional $500,000 in
capital.”
“Some potential milestones a business plan could indicate
include product completion,
product testing, first customer
shipment, unit volume goals,
company infrastructure develop-
ments, core agreements reached,
and second product shipping.”
ann winblad
Venture Capitalist
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Chapter summary
Your plan’s Company Description communicates the basic
details of your
business in a brief form. From this section, a reader gets a clear
idea of what
your company does, its legal status, types of products and
services, your
management and leadership, the business location, and how far
you have
developed. The Statement of Mission shows that you understand
the focus
of your company and can articulate your objectives concisely.
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Company Description plan preparation form
List facts about your business according to the categories
below.
naMes
Legal/Corporate name:
_____________________________________________________
______________________
doing Business As:
_____________________________________________________
_________________________
Brand/Trade/domain names:
_____________________________________________________
_________________
subsidiary Companies:
_____________________________________________________
______________________
legal fOrM
Legal Form of Business:
_____________________________________________________
_____________________
state in Which incorporated (if incorporated):
_____________________________________________________
____
County in Which Business is Licensed:
_____________________________________________________
__________
owner(s) of Company or major shareholders:
_____________________________________________________
____
ManageMent/leaDership
Chairperson of the Board:
_____________________________________________________
____________________
President:
_____________________________________________________
________________________________
Chief Executive officer:
_____________________________________________________
______________________
other Key management members:
_____________________________________________________
_____________
governing/Advisory Bodies:
_____________________________________________________
__________________
number of members:
_____________________________________________________
_______________________
lOCatiOn
Company Headquarters:
_____________________________________________________
_____________________
Place of Business:
_____________________________________________________
__________________________
Branches:
_____________________________________________________
________________________________
geographic Area served:
_____________________________________________________
____________________
DeVelOpMental stage
When Company Was Founded:
_____________________________________________________
________________
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Company Description plan preparation form (continued)
stage of Formation or immediate goals:
_____________________________________________________
_________
When Product or service Was introduced:
_____________________________________________________
______
Progress of Current Plans and milestones Reached:
____________________________________________________
other developmental indicators:
_____________________________________________________
_______________
finanCial status
Last year’s Total sales:
_____________________________________________________
______________________
Last year’s Pretax Profit:
_____________________________________________________
_____________________
sales and Profitability by division or Product Line:
_____________________________________________________
_
Current number of Employees:
_____________________________________________________
________________
Amount of Funds sought:
_____________________________________________________
____________________
Basic Use of Funds
sought:_______________________________________________
_________________________
Previous Funding and major Financial
obligations:___________________________________________
___________
prODuCts anD serViCes
general Product/service description:
_____________________________________________________
___________
number and Type of Lines:
_____________________________________________________
___________________
number of Products or services in Each Line:
_____________________________________________________
____
patents anD liCenses
Patents Held/Pending:
_____________________________________________________
_______________________
Trademarks Held/Pending:
_____________________________________________________
___________________
Licenses Held/Pending:
_____________________________________________________
______________________
Copyrights Held/Pending:
_____________________________________________________
____________________
Use this information as the basis of your plan’s Company
Description section.
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saMple plan: ComPAny dEsCRiPTion
COMpanY DesCriptiOn
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.”
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.
the Company’s Mission
ComputerEase views its mission as increasing the corporate
community’s productivity
by helping them realize the maximum benefit from their
personnel and computers
through software training. ComputerEase is dedicated to
building long-term relation-
ships with customers through quality training and support, to
being known as the
premier software training company in the Greater Vespucci
area, and to expanding
online course offerings globally to English-speaking countries
throughout the world.
The goal is steady expansion, becoming profitable by the third
year of operations.
ComputerEase also is dedicated to contributing back to the
Vespucci community by
providing free computer training programs for inner-city youth,
low-income residents,
and “welfare-to-work” program participants.
services
ComputerEase offers training classes for users of all leading
business software
programs. The company also devises customer training
programs for corporate clients.
ComputerEase’s classes are targeted primarily to the corporate
market. Training classes
can be taken online, or on-site at the customers’ offices or at
ComputerEase’s Training
Center in downtown Vespucci. To fully leverage the company’s
investment in hard-
ware and software, the company offers online training courses
to corporate clients in
markets throughout the U.S.
Prior to opening the Training Center and developing online
courses, the company
was limited in the services it could offer potential clients. The
most lucrative business,
continuing corporate contracts, was severely restricted, and no
public seminars could
be offered. Nevertheless, in the first nine months of operation,
the company conducted
184 training programs, and secured ongoing training contracts
with 11 primary
target corporate customers in its local geographic area. And
despite investing very
little in marketing its online programs during the first two
months of offering them,
ComputerEase acquired three national accounts. This produced
revenues of $171,000
through August 2010.
The company projects deficits for the first two years of
operation, with income rein-
vested for expansion. We anticipate that the company will be
profitable by the third
year. In these three years, our goal is to become the premier
software training company
in the Greater Vespucci area, and to increase our market share
of the online training
services sector. Trends in training, however, are toward
nationally known providers, so
the company anticipates either joining or starting a national
franchise by year three.
The company owns the trademark to the name ComputerEase,
under which it does
business, and to the slogan “We Speak Your Language.”
Tells company
basics: incorpo-
ration, location,
services.
States how the
company intends to
distinguish itself
to customers.
Shows how the
company has
grown and estab-
lished revenues.
Provides specific
financial develop-
ment data.
067-082_SBP5_Ch05_FINAL.indd 81 7/25/10 3:39 PM
s u C C e s s f u l B u s i n e s s p l a n s E C R E T s & s T
R AT E g i E s82
saMple plan: ComPAny dEsCRiPTion (continued)
Development to Date
Founded in January 2010 by Scott E. Connors, ComputerEase
began operation by
providing software training at corporate customers’ offices.
In March 2010, Susan Alexander became Vice President for
Marketing. Ms. Alexander
immediately began an extensive sales campaign, targeting 200
large companies in the
Vespucci area.
In August 2010, ComputerEase opened its software training
center at its present loca-
tion in downtown Vespucci, enabling the company to
significantly expand its offerings.
Also in August 2010, ComputerEase released its first online
training classes, accessible
over the company’s website. Site licenses were offered to larger
corporations with more
extensive ongoing training needs.
In its first nine months of operation, the company conducted
184 training programs,
and secured ongoing training contracts with 11 primary target
corporate customers
in its local geographic area. And despite investing very little in
marketing its online
programs during the first two months of offering them,
ComputerEase acquired three
national accounts.
legal status and Ownership
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.
The company was granted the trademark “ComputerEase” by the
U.S. Patent and
Trademark Office.
Funding of the company to date has come from the personal
savings of Mr. Connors.
This has amounted to a $60,000 investment and $40,000 in
loans. In addition, the
company has received a $30,000 loan from Mr. Connors’ family
members. All other
funding has come from the income generated by sales.
The company is now seeking $160,000 from outside investors.
These funds will
be used to open an additional Training Center, hire trainers, add
staff, and expand
marketing activities, especially for online courses.
Gives clear picture
of current owner-
ship and equity
available.
067-082_SBP5_Ch05_FINAL.indd 82 7/25/10 3:39 PM
Business: Women Only Fitness Center
This is a continuation of assignment 1. Please include a short
conclusion in the paper (3-4 sentences).
Week 2 Assignment: Company Description
Complete the Company Description Plan Preparation Form at
the end of Chapter 5. Compile the information into the
Company Description section of your business plan. At a
minimum, our description should include the following:
· Part 1
· Business name
· Legal Form
· Management/Leadership
· Location
· Part 2
· Development stage
· Financial status
· Part 3
· Products and services
· Patents and licenses
Minimum 2 pages
Business Professional Format
Do not submit an entire business plan
Do not submit the worksheets as your company description
section
67C H A P T E R  5Conveying the Basics of Your Busines.docx

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67C H A P T E R 5Conveying the Basics of Your Busines.docx

  • 1. 67 C H A P T E R 5 Conveying the Basics of Your Business Before you can discuss the more complex aspects of your business and the meatier sections of your business plan, such as marketing strategy or new technology, you must first inform the reader of the basic details of your busi- ness. The object of this section is to convey information such as your legal status, ownership, products or services, company mission, and milestones achieved to date. The Company Description may be relatively simple to complete, espe- cially if you have been in business for some time. However, the simplicity may be deceptive, particularly if yours is a new company. Many of these basic issues require a lot of thought and planning. For instance, you may find yourself spending a great deal of time trying to choose a business name or deciding on which legal form your company should take. If yours is a start-up company, you may feel you don’t have the infor- mation to complete each category. As an example, you may not
  • 2. yet have rented an office or legally incorporated. In that case, write down what you intend to do. You might include information about your current situation as well. Thus, you might say, “Rocket Science Technology will be head- quartered in Austin, Texas, with a manufacturing facility in Luckenbach, Texas. Currently, the company’s address is 1234 Bruce Springsteen Street, San Antonio, TX 78216.” The most challenging aspect of the Company Description section is likely to be developing a “Mission Statement,” which concisely describes the goals, objectives, and underlying principles of your company. A Mission Statement enables you and readers of your business plan to get a better Company Description The reason most businesses fail is that they don’t understand the business they are in. 067-082_SBP5_Ch05_FINAL.indd 67 7/25/10 3:39 PM s u C C e s s f u l B u s i n e s s p l a n s E C R E T s & s T R AT E g i E s68 picture of where you intend to go with your business, and it helps you more
  • 3. clearly articulate exactly what business you are in. The following topics should be addressed in the Company Description section of your business plan. Company name 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: n Your own name n The legal corporate or company name n A “dba”(“doing business as”) n Brand name(s) n Model name(s) n Subsidiary company name(s) n Domain name(s) The number and types of names you need depend on the kind of busi- ness you are in, how you interact with the public, whether you are incorpo- rated, what kinds of and how many products/services you have, and your own personal taste.
  • 4. For instance, a company might list its legal name as AAA, Incorporated, doing business as Arnie’s Diner, operating the subsidiary business Rosie’s Catering Service, selling products under the trade name “Arnie’s Atomic,” and operating the website www.arniesatomic.com. If yours is a new business, and you have not yet chosen a name, consider one that meets your current needs but also gives you flexibility over the years. If you plan a company where most customers will do business with you because they know of you or your reputation, you may have no better name than your own. Many consultants, service providers, and designers, use just their own name. You can also combine your name with words that describe what you do, such as Erin’s Editing Services. However, using your own name or a business name that is very narrowly descriptive may limit your ability to grow, change focus, or sell the company in the future. Al’s Airplane Repair is more confining than Take- off Aviation Services, or even Take-Off Transportation Services. Having the legal rights to a memorable website or “domain” name may be a competitive business advantage, and if you have been able to secure the rights to such a name, you may want to highlight this fact in your business
  • 5. plan. The mere fact of having the rights to a catchy domain name, though, is not a business in and of itself. In your business plan, include the legal name of your company and any brand or trade names, dba’s, subsidiary company name, and domain name. “[Our mission is] To continually provide our members with quality goods and services at the lowest possible prices. In order to achieve our mission we will conduct our business with the following five responsibilities in mind: obey the law, take care of our members, take care of our employees, respect our vendors, reward our shareholders.” Mission statement of Costco 067-082_SBP5_Ch05_FINAL.indd 68 7/25/10 3:39 PM 69 C h a p t e r 5 : C o m PA n y d E s C R i P T i o n Company’s Objectives/statement of Mission Many, if not most, successful large companies describe the main goal of their internal planning process as articulating and clarifying their “philosophy” or “mission.” The best, most effective Mission Statements are not mere empty words, but principles and objectives that guide all other aspects and activities
  • 6. of the business. You should be able to sum up the basic objectives and philosophy of your company in just a few sentences. One statement should encapsulate the nature of your business, your business principles, your financial goals, your “corporate culture,” and how you expect to have your company viewed in the marketplace. A Statement of Mission provides focus for your company and should be the defining concept of your business for at least the next few years. It should be the result of a meaningful examination of the foundations of your company, and virtually every word should be important. A finished Mission Statement might be: “AAA, Inc., is a spunky, imagi- native food products and service company aimed at offering high-quality, moderately priced, occasionally unusual foods using only natural ingredi- ents. We view ourselves as partners with our customers, our employees, our community, and our environment, and we take personal responsibility in our actions toward each. We aim to become a regionally recognized brand name, capitalizing on the sustained interest in Southwestern and Mexican food. Our goal is moderate growth, annual profitability, and maintaining
  • 7. our sense of humor.” The Statement of Mission worksheet on pages 70–71 helps you outline your company’s objectives. legal issues In forming a business, you must address many critical legal issues. One of the first is which type of legal entity to choose for your company. Businesses often start as a sole proprietorship or a partnership. This has the advantage of being easy, since there may be no papers to file with the state. Being incorpo- rated, on the other hand, provides you and your investors with much greater protection from personal liability. Most investors (and some lenders) are usually more comfortable dealing with an incorporated entity. If you choose to incorporate, you will still have many decisions. What form of corporation will you choose? In what state will you incorporate? How many shares in your corporation will be issued, and to whom? Legal concerns and agreements will have a profound impact on the future of your company. In addition to the legal form of your business, there are many other legal considerations and issues to address in your business plan. Have you entered into licensing or distribution agreements? Have you secured
  • 8. trademarks, patents, copyrights, or other legal instruments that may protect your propri- etary business assets? “I had to rework my whole business plan a year or so in, because it was simply not a sustainable model. You have to realize when things aren’t working, and change them quickly, to succeed.” pauline lewis Owner, oovoo design 067-082_SBP5_Ch05_FINAL.indd 69 7/25/10 3:39 PM s u C C e s s f u l B u s i n e s s p l a n s E C R E T s & s T R AT E g i E s70 statement of Mission Describe your company’s philosophy in terms of the areas listed below. Range/nature of Products or services offered: _____________________________________________________ ___ Quality: _____________________________________________________ __________________________________ Price: _____________________________________________________
  • 9. ____________________________________ service: _____________________________________________________ __________________________________ overall Relationship to Customer: _____________________________________________________ ______________ management style/Relationship to Employees: _____________________________________________________ ___ 067-082_SBP5_Ch05_FINAL.indd 70 7/25/10 3:39 PM 71 C h a p t e r 5 : C o m PA n y d E s C R i P T i o n statement of Mission (continued) nature of Work Environment: _____________________________________________________ _________________ Relationship to Rest of industry: _____________________________________________________ _______________ incorporation of new Technology/other new developments: _____________________________________________ growth/Profitability goals:
  • 10. _____________________________________________________ ___________________ Relationship to Community/Environment/other social Responsibility goals: __________________________________ other Personal/management goals: _____________________________________________________ ____________ 067-082_SBP5_Ch05_FINAL.indd 71 7/25/10 3:39 PM s u C C e s s f u l B u s i n e s s p l a n s E C R E T s & s T R AT E g i E s72 Here is an example of how to handle the legal description of a business: “AAA, Inc., is incorporated in the state of California, licensed to do business in Jackson County, California. The three shareholders — Arnie Matthews, Brendan Muir, and Aaron Joshua — each own 33 1/3% of the total shares in the company. The company has secured U.S. trademarks to the name “Arnie’s Atomic Foods,” which is used on its food product line, and to the Triple A Shooting Star logo. AAA, Inc., has entered into a three-year, exclu- sive distribution agreement with BBB Distributors, the largest distributors of
  • 11. Mexican and Southwestern foods in the Southwest.” The worksheet, Legal Issues, is included on pages 73–74 to help you identify key legal concerns. If you plan to work globally—either selling your products or services inter- nationally, importing or exporting products or supplies, or signing agreements with international companies to handle aspects of your business like distribu- tion, support, or software development—you’ll need to educate yourself about the legal requirements and issues that can affect your business. For example, if you are selling products that entail significant intellectual property—also referred to as “IP” (such as software, electronics, new prod- ucts)—you’ll want to make certain that the countries where you’ll sell your products provide adequate legal protection against piracy. If you are entering into international contracts, you’ll want to understand typical contractual terms, but even more importantly, you’ll want to determine where any disputes/lawsuits will be settled. Be on the lookout for some countries’ limits on the activities and owner- ship rights of foreign companies. Many countries, for instance, require com- panies in some industries to be at least majority-owned by locals. They may
  • 12. also limit foreign ownership of land or assess tariffs on imports. Be certain to understand those limits before entering an international market. Use the worksheet on page 75 to capture your findings relating to the legal issues you need to consider when working internationally. products and services This part of your business plan can be relatively short, or it can be an entire section of its own. If your products or services are particularly technical, complicated, innovative, or proprietary, you will want to spend considerable time describing them. This is especially true if you are seeking funding for a new product or service and potential funders are likely to be motivated by the specifics. In this part of your plan, clearly identify and describe the nature of the products or services you provide. Be fairly specific, but if you have a large line of products or services, you do not need to list each one, as long as you indicate the general categories. Also indicate future products or services planned by your company and when you expect to introduce them. If you are developing an innovative product or service, particularly a tech- nology product, you must walk a fine line in describing its details. While you
  • 13. must provide sufficient detail both to give a clear idea of what your product 067-082_SBP5_Ch05_FINAL.indd 72 7/25/10 3:39 PM 73 C h a p t e r 5 : C o m PA n y d E s C R i P T i o n legal issues legal fOrM What is the legal form of your company currently? Limited Liability Company no legal entity/status other, describe:__________________________ C Corporation ______________________________________ What is the intended legal form if different from above? Limited Liability Company no legal entity/status other, describe:__________________________ C Corporation ______________________________________
  • 14. Ownership if a sole proprietor or partnership, list the owners: _____________________________________________________ _ if incorporated, how many shares of stock have been issued? _____________________________________________ Who owns the stock and in what amounts? _____________________________________________________ ______ in which state(s), province(s), country(s), etc. are you legally incorporated or registered to do business? List dates and specifics: _____________________________________________________ _________________________________ Have you secured written agreements between/with: Key employees/management Customers strategic partners 067-082_SBP5_Ch05_FINAL.indd 73 7/25/10 3:39 PM
  • 15. s u C C e s s f u l B u s i n e s s p l a n s E C R E T s & s T R AT E g i E s74 legal issues (continued) List which of the following you have secured; include dates and specifics: Trademarks:__________________________________________ __________________________________________ Copyrights: _____________________________________________________ _______________________________ Patents: _____________________________________________________ __________________________________ domain names: _____________________________________________________ ____________________________ List investments to date, including dates and terms: _____________________________________________________ List loans or any other debts, including dates and terms: _________________________________________________ List property leases, purchase agreements, etc., including dates and terms: __________________________________ List equipment leases, purchase agreements, etc., including dates and terms: ________________________________ List any distribution or licensing agreements, etc., including
  • 16. dates and terms: ________________________________ List other strategic partnerships, arrangements, etc., including dates and terms: ______________________________ 067-082_SBP5_Ch05_FINAL.indd 74 7/25/10 3:39 PM 75 C h a p t e r 5 : C o m PA n y d E s C R i P T i o n globalization: legal issues For each country in which you plan to do business, research and list the legal issues that may have an impact on you and your company. COuntrY _____________________________________________________ _______ Contracts/jurisdiction: _____________________________________________________ _______ _____________________________________________________ _______ import/export licenses: _____________________________________________________ _______ _____________________________________________________
  • 17. _______ intellectual property protections: _____________________________________________________ _______ _____________________________________________________ _______ global distribution agreements: _____________________________________________________ _______ _____________________________________________________ _______ Partnership agreements: _____________________________________________________ _______ _____________________________________________________ _______ other licenses or regulations: _____________________________________________________ _______ _____________________________________________________ _______ Tax incentives/advantages: _____________________________________________________
  • 18. _______ _____________________________________________________ _______ Corporate ownership: _____________________________________________________ _______ _____________________________________________________ _______ Trade agreements: _____________________________________________________ _______ _____________________________________________________ _______ Facilities and property ownership/leases: _____________________________________________________ _______ _____________________________________________________ _______ other legal issues: _____________________________________________________ _______ _____________________________________________________
  • 20. _______ 067-082_SBP5_Ch05_FINAL.indd 75 7/25/10 3:39 PM s u C C e s s f u l B u s i n e s s p l a n s E C R E T s & s T R AT E g i E s76 does and to inspire confidence that it actually achieves its intended purpose, you do not want to disclose sensitive information. Even if a reader of your business plan has signed a Non-Disclosure Agreement (see Chapter 18), be extremely cautious of putting highly proprietary or technical details in your written document. These can be disclosed at a later stage of discussions. Once again using the fictional AAA, Inc., the “Products/Services” section might read: “Arnie’s Diner is a full-service restaurant specializing in Mexican and Southwestern cuisine. Rosie’s Catering Services provides catering for both business and personal occasions. The Arnie’s Atomic food line currently consists of seven shelf-stable chili and salsa products. We anticipate releasing a line of four packaged Southwestern spice mixtures in the next six months. In the second year of this plan, we anticipate introducing a line of tortilla chips.”
  • 21. Management/leadership Next, include the name of the chairperson of the Board of Directors, president, and/or chief executive officer. If there are other key members of management, especially those that might be known to potential investors, list their names here. Also, if you have a Board of Directors, Advisory Board, or other governing entity, indicate how many people serve on that body and how frequently it meets. If the membership of these bodies is particularly impressive, include their names; otherwise, it is not necessary to do so. Business location List the location of your company’s headquarters, main place of business (if different), and any branch locations. If you have more than one or two branches, you can list just the total number (although you might want to include a complete list in your plan’s appendix). If you have not yet secured a location but intend to do so, indicate the general whereabouts of your intended operation. Also, it is very important to describe the geographical area your company serves. For instance, state: “The corporate offices of AAA, Inc., are located at 123 Amelia Earhart Drive, Jackson, California. Arnie’s Diner is located at 456 Lincoln Street in Jackson. Rosie’s Catering Services
  • 22. operates from the diner and serves the entire Jackson County area. Arnie’s Atomic food prod- ucts will be produced at a plant to be leased in Jackson and will be sold in five Southwestern states.” Development stage and Milestones achieved to Date Someone reading your business plan should be able to get a clear sense of how far along your company is in its development, and what progress you have made in building the company. Even start-up companies often have a record of accomplishments. You may have already developed technology, raised seed funding, lined up strategic part- nerships, or secured indications of interest from key customers. Showing the progress you’ve achieved to date inspires confidence in your ability to develop your company further and indicates the level of commitment you have made 067-082_SBP5_Ch05_FINAL.indd 76 7/25/10 3:39 PM 77 C h a p t e r 5 : C o m PA n y d E s C R i P T i o n to your business. You will want to clearly indicate any positive milestones you’ve achieved. Begin by stating when the company was founded. Next, indicate
  • 23. your phase of development: a seed company (with a business concept but without a product or service finalized); a start-up (in early stages of opera- tion); expansion (adding new products, services, or branches); retrenchment (consolidating or repositioning product lines); or established (maintaining market share and product positioning). Indicate how far along your plans have progressed. Has the product been developed or tested? Have orders been placed or the product shipped? Are leases signed or suppliers secured? What have been the past milestones and successes of current operations? If you earlier set specific goals with target dates, indicate if you met those objectives. A Milestones Achieved worksheet is included in Chapter 15, and you may wish to take highlights from that worksheet to include in your Company Description section of your business plan. Using the above example of AAA, Inc., this section might read: “Arnie’s Diner opened in 2006, and the company began packaging food products used in the restaurant in 2008. These were initially sold in grocery stores on a local basis. In January 2009, the company set an annual sales goal of $60,000 for the ‘Arnie’s Atomic’ line of packaged food and
  • 24. exceeded that goal, achieving $103,000 in gross sales in 2009. In 2010, sales of packaged food products rose to $237,000. A leading distributor has been secured to sell ‘Arnie’s Atomic’ products to grocery and specialty stores in five South- western states. The first orders have been received, placed, and renewed, and the company now plans to expand its production facilities to accommodate increased sales and develop new products.” financial status You also want to give a brief idea of the status of your company in financial and personnel terms. For example, readers will want to know how you have been funded to date and any major financial obligations. You should also indicate any loans or investments you have received and on what terms. If you are seeking funding, briefly indicate how much money you seek and for what purpose. You will expand on your financial obligations and use of funds sought in the Financials section of your plan. Thus, this section might read: “AAA, Inc., has maintained overall profit- ability through slow, careful expansion of its component companies. Total gross revenue for the previous year was approximately $1,247,000. Rosie’s Catering is presently the most profitable, last year showing a profit of
  • 25. $128,000 on sales of $525,000; Arnie’s Diner showed a profit of $81,000 on sales of $485,000; Arnie’s Atomic Foods projects a current year loss of $77,000 on sales of $237,000. Currently the total workforce is five full-time employees and seven part-time employees. We are now seeking to expand the production facilities, add employees, and increase our sales and market- ing efforts. To do so, we are seeking an additional $500,000 in capital.” “Some potential milestones a business plan could indicate include product completion, product testing, first customer shipment, unit volume goals, company infrastructure develop- ments, core agreements reached, and second product shipping.” ann winblad Venture Capitalist 067-082_SBP5_Ch05_FINAL.indd 77 7/25/10 3:39 PM s u C C e s s f u l B u s i n e s s p l a n s E C R E T s & s T R AT E g i E s78 Chapter summary Your plan’s Company Description communicates the basic details of your business in a brief form. From this section, a reader gets a clear idea of what your company does, its legal status, types of products and
  • 26. services, your management and leadership, the business location, and how far you have developed. The Statement of Mission shows that you understand the focus of your company and can articulate your objectives concisely. 067-082_SBP5_Ch05_FINAL.indd 78 7/25/10 3:39 PM 79 C h a p t e r 5 : C o m PA n y d E s C R i P T i o n Company Description plan preparation form List facts about your business according to the categories below. naMes Legal/Corporate name: _____________________________________________________ ______________________ doing Business As: _____________________________________________________ _________________________ Brand/Trade/domain names: _____________________________________________________ _________________ subsidiary Companies: _____________________________________________________ ______________________
  • 27. legal fOrM Legal Form of Business: _____________________________________________________ _____________________ state in Which incorporated (if incorporated): _____________________________________________________ ____ County in Which Business is Licensed: _____________________________________________________ __________ owner(s) of Company or major shareholders: _____________________________________________________ ____ ManageMent/leaDership Chairperson of the Board: _____________________________________________________ ____________________ President: _____________________________________________________ ________________________________ Chief Executive officer: _____________________________________________________ ______________________ other Key management members: _____________________________________________________ _____________
  • 28. governing/Advisory Bodies: _____________________________________________________ __________________ number of members: _____________________________________________________ _______________________ lOCatiOn Company Headquarters: _____________________________________________________ _____________________ Place of Business: _____________________________________________________ __________________________ Branches: _____________________________________________________ ________________________________ geographic Area served: _____________________________________________________ ____________________ DeVelOpMental stage When Company Was Founded: _____________________________________________________ ________________ 067-082_SBP5_Ch05_FINAL.indd 79 7/25/10 3:39 PM
  • 29. s u C C e s s f u l B u s i n e s s p l a n s E C R E T s & s T R AT E g i E s80 Company Description plan preparation form (continued) stage of Formation or immediate goals: _____________________________________________________ _________ When Product or service Was introduced: _____________________________________________________ ______ Progress of Current Plans and milestones Reached: ____________________________________________________ other developmental indicators: _____________________________________________________ _______________ finanCial status Last year’s Total sales: _____________________________________________________ ______________________ Last year’s Pretax Profit: _____________________________________________________ _____________________ sales and Profitability by division or Product Line:
  • 30. _____________________________________________________ _ Current number of Employees: _____________________________________________________ ________________ Amount of Funds sought: _____________________________________________________ ____________________ Basic Use of Funds sought:_______________________________________________ _________________________ Previous Funding and major Financial obligations:___________________________________________ ___________ prODuCts anD serViCes general Product/service description: _____________________________________________________ ___________ number and Type of Lines: _____________________________________________________ ___________________ number of Products or services in Each Line: _____________________________________________________ ____
  • 31. patents anD liCenses Patents Held/Pending: _____________________________________________________ _______________________ Trademarks Held/Pending: _____________________________________________________ ___________________ Licenses Held/Pending: _____________________________________________________ ______________________ Copyrights Held/Pending: _____________________________________________________ ____________________ Use this information as the basis of your plan’s Company Description section. 067-082_SBP5_Ch05_FINAL.indd 80 7/25/10 3:39 PM 81 C h a p t e r 5 : C o m PA n y d E s C R i P T i o n saMple plan: ComPAny dEsCRiPTion COMpanY DesCriptiOn 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.”
  • 32. 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. the Company’s Mission ComputerEase views its mission as increasing the corporate community’s productivity by helping them realize the maximum benefit from their personnel and computers through software training. ComputerEase is dedicated to building long-term relation- ships with customers through quality training and support, to being known as the premier software training company in the Greater Vespucci area, and to expanding online course offerings globally to English-speaking countries throughout the world. The goal is steady expansion, becoming profitable by the third year of operations. ComputerEase also is dedicated to contributing back to the Vespucci community by providing free computer training programs for inner-city youth, low-income residents, and “welfare-to-work” program participants. services ComputerEase offers training classes for users of all leading business software programs. The company also devises customer training programs for corporate clients. ComputerEase’s classes are targeted primarily to the corporate market. Training classes can be taken online, or on-site at the customers’ offices or at
  • 33. ComputerEase’s Training Center in downtown Vespucci. To fully leverage the company’s investment in hard- ware and software, the company offers online training courses to corporate clients in markets throughout the U.S. Prior to opening the Training Center and developing online courses, the company was limited in the services it could offer potential clients. The most lucrative business, continuing corporate contracts, was severely restricted, and no public seminars could be offered. Nevertheless, in the first nine months of operation, the company conducted 184 training programs, and secured ongoing training contracts with 11 primary target corporate customers in its local geographic area. And despite investing very little in marketing its online programs during the first two months of offering them, ComputerEase acquired three national accounts. This produced revenues of $171,000 through August 2010. The company projects deficits for the first two years of operation, with income rein- vested for expansion. We anticipate that the company will be profitable by the third year. In these three years, our goal is to become the premier software training company in the Greater Vespucci area, and to increase our market share of the online training services sector. Trends in training, however, are toward nationally known providers, so the company anticipates either joining or starting a national
  • 34. franchise by year three. The company owns the trademark to the name ComputerEase, under which it does business, and to the slogan “We Speak Your Language.” Tells company basics: incorpo- ration, location, services. States how the company intends to distinguish itself to customers. Shows how the company has grown and estab- lished revenues. Provides specific financial develop- ment data.
  • 35. 067-082_SBP5_Ch05_FINAL.indd 81 7/25/10 3:39 PM s u C C e s s f u l B u s i n e s s p l a n s E C R E T s & s T R AT E g i E s82 saMple plan: ComPAny dEsCRiPTion (continued) Development to Date Founded in January 2010 by Scott E. Connors, ComputerEase began operation by providing software training at corporate customers’ offices. In March 2010, Susan Alexander became Vice President for Marketing. Ms. Alexander immediately began an extensive sales campaign, targeting 200 large companies in the Vespucci area. In August 2010, ComputerEase opened its software training center at its present loca- tion in downtown Vespucci, enabling the company to significantly expand its offerings. Also in August 2010, ComputerEase released its first online training classes, accessible over the company’s website. Site licenses were offered to larger corporations with more extensive ongoing training needs. In its first nine months of operation, the company conducted 184 training programs, and secured ongoing training contracts with 11 primary target corporate customers in its local geographic area. And despite investing very little in
  • 36. marketing its online programs during the first two months of offering them, ComputerEase acquired three national accounts. legal status and Ownership 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. The company was granted the trademark “ComputerEase” by the U.S. Patent and Trademark Office. Funding of the company to date has come from the personal savings of Mr. Connors. This has amounted to a $60,000 investment and $40,000 in loans. In addition, the company has received a $30,000 loan from Mr. Connors’ family members. All other funding has come from the income generated by sales. The company is now seeking $160,000 from outside investors. These funds will be used to open an additional Training Center, hire trainers, add staff, and expand marketing activities, especially for online courses. Gives clear picture of current owner-
  • 37. ship and equity available. 067-082_SBP5_Ch05_FINAL.indd 82 7/25/10 3:39 PM Business: Women Only Fitness Center This is a continuation of assignment 1. Please include a short conclusion in the paper (3-4 sentences). Week 2 Assignment: Company Description Complete the Company Description Plan Preparation Form at the end of Chapter 5. Compile the information into the Company Description section of your business plan. At a minimum, our description should include the following: · Part 1 · Business name · Legal Form · Management/Leadership · Location · Part 2 · Development stage · Financial status · Part 3 · Products and services · Patents and licenses Minimum 2 pages Business Professional Format Do not submit an entire business plan Do not submit the worksheets as your company description section