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Writing a description for your proposed business
The description of business section of your business plan summarizes for readers what your business has done in the past, what it is going to do in the future, and how it is going to get there. Think of this section as providing a little more information than your executive summary, but not all of the supporting details contained in the rest of your plan. The most important question that you must answer in this section of your business plan is "what business are you in?" If you answer the question too narrowly, you may miss out on larger opportunities. If you answer the question too broadly, you will never be able to focus on the business at hand. For example, imagine that you owned a movie theater and someone asked you "what business are you in?" You might provide the narrow response and say "I am in the movie theater business," or you might provide the broad response and say "I am in the entertainment business." Either of these responses is acceptable depending on what your mission and objectives are. How you think of your business will have a bearing on many of the decisions that you will have to make in the future. Much like the captain of a ship, you must establish objectives to get from point A to point B. For example, if you want to become a $50 million company in 5 years then you will have to be a $5 million company next year. Along the way distractions will develop, such as raw material shortages, alternative technologies, or new competition, and cause your business to travel off-course. However, if you have established clear and concise objectives, then you will always know where you are relative to your destination, and be able correct the situation by charting a new course. Once you have established what business you are in, identifying your target markets, customers and competitors will become much easier. For this section of your business plan you will also want to highlight the key elements of your business, including: your financial performance, product benefits, marketing strategy, and management capabilities.
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