Company

Background and history

The reader is often looking for the reason you got into this business and why you think that it is important to be involved with the future of this organization. Typically the competitive advantage the firm enjoys in the marketplace was developed from a history of trial-n-error. Often the principals in the firm have a working knowledge of the product or service offered and how it stacks up against the competition.

Location and Facilities

Sometimes this section is very important, sometimes not so much. It depends a lot on the type of business. Do not be redundant and add details that are best put in the operations section to follow. If the public needs access to the facility then details of the layout are useful. If the location is less than optimum, then the advertising and promotion of the location will be needed. Underestimating the additional costs to build consumer awareness is a common plan shortcoming.

Industry Experience

If the company is a startup there is no history, but the principles in the business may have some relevant background in other companies that directly relates to this newly formed enterprise. Don’t tell stories about the history of the organization unless they are relevant to explaining the competitive advantage the firm has.

Company Structure

Is this a “C” corporation, a subchapter “S”, a LLC or a sole proprietorship? Define the structure and give a brief overview of the ownership structure. Some details from the bylaws are good if relevant to the understanding of the business plan. This is sometimes the case when patents, royalties and technology transfer agreements are in place.