The Executive Summary part of the business plan that we have started to work on last time is something that we most likely will come back and edit when we finish other parts. Today we begin working on the next part: Company description.
SBA recommends to include in your company description the following:
- the nature of your business and list the marketplace needs that you are trying to satisfy.
- explanation of how your products and services meet these needs.
- list the specific consumers, organizations or businesses that your company serves or will serve.
- explanation the competitive advantages that you believe will make your business a success such as your location, expert personnel, efficient operations, or ability to bring value to your customers.
The SBA business planning tool offers 3 sections to be completed: Mission Statement, Principal members, and Legal Structure.
According to the Small Business Encyclopedia Mission Statement is "a short written statement of your business goals and philosophies. A mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate".
It could be tricky to define a mission sometimes. I have been thinking about Anyaberry's mission statement for some time and couldn't wrap my mind around it. I wrote a letter to an entrepreneur whom I admire in hopes of an advice. Even though I didn't receive the answer the process of writing made me realize what exactly is near and dear to my heart. With a help of a dear friend of mine who shared her opinion I drafted Anyaberry's mission and here it is:
To create a made in the USA company, that produces high quality children's clothing. To teach children through different community events to appreciate the quality and beauty of the clothing they put on and to value the clothing produced in an ethical environment. To educate children in the timeless art of needlework so it will continue through future generations.
Mission statement can change when company grows and evolves. But it is a good idea for all the employees to be in sync about the mission. Here is another example of the mission statement. Alabama Chanin's "zero waist" mission is "to preserve traditions of community, design, producing and living arts by examining work and life through the act of storytelling, photography, education and marketing" (source:http://bittersoutherner.com/). So what is yours? Share, please!
Next section of the Company Description is the list of the employees that you plan to hire. If you just starting out, it may be a good idea to ask a mentor or to look at the examples of the business plans in your industry.
To help you complete the next section, here is a link to the article about the legal structure of your business. If you have an opportunity it is a good idea to consult with a lawyer before making a final selection.
Next time we will start working on a Marketing Research part of the business plan.
Cheers!
And as always:
this is just a blog post not a legal advice :)
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